Low-Income Housing Tax Credit

1. High administrative costs and low levels of compliance, the complexity of the tax code, the perceived inequities of the tax structure, and the large distortions that some argue are associated with current marginal tax rates, all have contributed to the impetus for tax reforms. 2. Many of the problems of the income tax system have arisen because too much has been asked of it. It was supposed to provide economic incentives (e.g., to invest, to save, to encourage health insurance, to support…

The IRS requires that individuals and businesses must sign a federal tax return in order to register with the IRS and obtain a PTIN (Preparer tax identification number). Anyone who prepares or assists federal tax returns must have a valid 2015 PTIN. You would also need to successfully complete tests for all paid tax return unless you are a CPA, attorney, or enrolled agents. Any tax return who engage in unethical conduct would be suspended by the IRS. If you are trying to renew a PTIN, you would…

Income Tax - Assessment 1A - 1. To decide whether a person is classed as employed or self-employed, HMRC will apply tests to that person’s situation in order to make a decision. There are 7 main criteria for establishing a person’s situation: control, financial risk, equipment, work performance and correction, holidays, sickness and exclusivity. Control establishes how much control the person who is paying for the work has over the person employed to do the work. In this case Katy completes…

United States of America, it has been proven over the years that progressive tax works for the american people becaue of its efficiency and equity it creates, which makes the progressive tax likely to happen and continue in the country. Teddy Roosevelt once said, “I believe that there should be a very much heavier progressive tax on very large incomes, a tax which should increase in a very marked fashion for the gigantic incomes.” History supports progressive taxes. They were effective in the…

unnecessary, and torturous, while other people think that they can be used for personal protection and beneficial to society. First and foremost, there is a lot of positives of taxes. For example in the article “Why Do You Have To Pay Taxes?” it states, “Tax money helps to ensure the roads you travel on are safe and well-maintained. Taxes fund public libraries and parks. Taxes are also used to fund many types of government programs that help the poor and less fortunate, as well as many…

flat tax or flat to the graduated tax? The graduated tax system, also known as the progressive tax system of the United States of America, has been in place since the time Abraham Lincoln. Many people disagree with each other that the progress tax system is unfair because tax rates create more of a task on lower income wage earners. Reform is being considered, one plan is the flat tax, which states everyone will pay the same tax rate. Flat tax is better than the graduated tax because a flat tax…

increase or decrease the amount of income the government receives. The US economy fluctuates very easily and we use a progressive tax rate, meaning the higher income you make, the more taxes you pay. As the tax rate stands, it should be something that shouldn't be changed. Everyone wants lower taxes, more jobs, more income, but that isn't how it works. If US falls into recession, tax revenues will also decline and the marginal tax will be fixed but that also means income will be decreased and…

favorable tax treatment. Which duty do you believe is higher, the duty of corporations to pay tax to government or the duty of corporations to pay dividends to shareholders? I believe that corporations have the duty to pay dividends to the shareholders. Corporations incur in double taxation; therefore, the government will tax the corporations since the taxing authorities consider the entity as taxable persons. The corporations will pay federal, state, and local tax based on the net income.…

1031 (a) (1)) I don’t think John and Jane would be able to utilize a 1031 tax exchange in this scenario because I don’t think the handcrafted jewelry that Jane sells would constitute their house as a business property as that is not the main purpose of the property. Personal properties are unable to take advantage of the 1031 tax exchange. 2-C: c. Does Jane have a business or hobby? Why is this…

it comes to realizing tax advantages that help your business grow. If you 've already established your business, it might be worth reviewing your business structure and finances with a Certified Tax Coach, and it’s always important to consider your options when starting a new company. Even though it might seem odd to change business structure for a thriving business, doing so could save you hundreds, thousands or millions of dollars depending on your business size and the tax and liability…