Tax deduction

Across different tax jurisdictions there are varying treatments observed however, the two primary tax treatments for pensions are EET and TEE. The former system allows contributions and investment returns to be exempt from tax whilst retirement income is taxed. In contrast, the latter taxes contributions whilst returns and retirement income are tax-free. There are variations to the two main systems found across different jurisdictions. We will draw comparisons with the UK tax system across four…

PART A-SHORT ANSWERS 1. D’s Life insurance policy a. Per 2042(1) since the proceeds of the life insurance are being paid to the estate they are subject to the estate tax. b. No, 2042(b) since D still has the ability to designate the beneficiary the gift is not complete and he is deemed to retain “incident of ownership” and the policy will be included in the estate. c. D should transfer the policy to another individual or an irrevocable trust. D must divest himself the incidents of ownership.…

A taxpayer is able to choose from three different tax structures upon forming his or her business. These three different businesses are known as partnerships, “C” corporations and “S” corporations. For methods of incorporation, the internal revenue code dictates a business entity on how they can benefit the taxpayer in the most tax efficient way. The main objective for a business entity and its owners or shareholders is to start a business that fits the owner’s needs and to avoid paying more…

Trump's penthouse populism...the Republican tax plan Americans for Prosperity, primarily funded by the Koch brothers and other corporate interests, has a field staff and volunteers that have hit more than 41,000 homes and made 1.1 million phone calls. In all, the Koch groups have spent $10 million on events, grass roots canvassing and advertising. If you guessed that the Republican tax plan primarily helps the top 1% and the Koch brothers you would be correct. In addition, another…

Real Estate Tax Strategies Achieving Financial Strength Through Real Estate Tax Strategies The right tax strategy can help you build true wealth because you can deduct hundreds of everyday personal and business expenses and interest payments, generate cash flow from rentals while building equity and realize tax-free capital gains on the sale of primary homes every two years. Any financial portfolio benefits by including real estate to hedge and balance the investments. In real estate, agents…

Jeb Bush, son of George H. W. Bush, has promoted more conservative tax policies during his campaign for president as a Republican candidate. He recently announced his tax plan on September 8; promoting tax cuts for all individuals and corporations. In general, Republicans heavily favor the “trickle down” economic theory, the theory that economic benefits for the wealthy will “trickle down” and benefit society as a whole. Rather than spend their newfound wealth, the upper classes would choose to…

2013 through 2014 total cost went up by $ 4,042,000. Total cost of revenue is almost double every year (yahoo finance, 2016). Net income. Net income is the amount of revenue in an accounting period deducted the expenses at the same time with a deduction of income taxes and interest (Stock Analysis on net, 2016). Net income For General Electric Company as of December 31, 2012 $13,641,000, 2013 $13,057,000, and 2014 $15,233,000 (Yahoo Finance, 2016). General Electric Net income dropped from 2012…

It’s tax season again, which seems an even colder season than winter for many of us. Physicians, especially, can feel a chill in the air this time of year as they attempt in vain to get ready for April 15th. Between taking care of their patients and trying to stay compliant with so many initiatives, many doctors have little time to actually learn the basics of the tax codes that apply to them, and so they wind up getting involved in questionable investments and “tax shelters” to, in the end,…

The creation of the IRS dates back to 1862, when President Lincoln established an income tax to pay for the Civil War. The IRS is a tax administrator under the Department of the Treasury. Their mission is to help American taxpayers understand and meet their tax responsibilities, and enforce the law with integrity and fairness to all. The Commissioner is the head of the agency, they must be appointed by the President and approved by the Senate. I choose the IRS because it is one of the most…

and we could find way to deduct his interest expense • Do not report into taxable income and he might get into trouble Laws: 1. Rev. Rul. 82-74, 1982-1 CB 110 -- IRC Sec(s). 1001Revenue Rulings (1954 - Present) (RIA) Section 162(a)(2) disallows deductions under section 162(a) for payments that are illegal under any law of the United States or any state (if it is generally enforced) that subjects the payor to a criminal penalty. 2.…