Tax deduction

Obtaining federal tax-exempt status is somewhat of a mystery for my incorporated business owners. Gaining tax-exempt status for your nonprofit 501(c)(3) organization is necessary to reap the majority of the real benefits, such as access to grant money, income exemptions, property exemption, and tax-deductions for donations received. Therefore, it’s important to understand the steps to successfully apply for tax-exempt status. Planning and Forming a Nonprofit When forming a business that you…

that is accessible and affordable for all, depends on the amount of public funding available (Lai, 2013, Pg. 5). Public funding could be made available through vouchers, tax credits, and subsidies, and the funding could either be supporting the childcare services directly or indirectly, through parents/families in form of vouchers, tax credits, and…

government revenue as taxes were cut tremendously. From the end of 2007 to 2009, real tax receipts had fallen by over 15 percent and in the third quarter of 2009, tax receipts only financed 62 percent, the lowest shares since World War II. In 2012, the U.S. government raised 24 percent of the GDP in tax revenue, a percentage lower than many countries, including Japan, Canada, France, and Sweden. So what source of tax revenue has raised the most amount of money? Historically, personal income…

Sarah Anderson et al. answered “Yes” to the issue “Are U.S. CEOs paid more than they deserve?” in her article. She pointed out that the U.S tax code allow top corporate executives and financial leaders to avoiding paying their fair share of taxes and allow corporation to claim unwarranted deductions for exorbitant executive pay. Corporations could over pay corporate executives which including CEOs so that they could avoid paying income taxes. According to research at Equilar, which find out that…

for tax purposes so therefore should only be apparent on the parent’s financial statements. Throughout our research on intercorporate transfer pricing we were intrigued by the effects it has on taxes purposes and financial statements. Transfer pricing has a direct effect on the financial statements. For this reason they are a crucial point for tax purposes as well. According to FASB Codification Sec. 482 “A section of the U.S Tax Code allowing the IRS to allocate assets, income, deductions,…

The Medicare-For-All policy is one of the many bills Bernie Sanders is trying to pass, if elected as President. The Affordable Care Act is a little similar, and has gotten our country so much closer to gaining the Medicare-For-All policy. More than seventeen million Americans have gained health insurance from the Affordable Care Act. Millions of low-income Americans have coverage now, thanks to expanded eligibility in Medicaid, that exists in thirty-one states. Kids can now stay on their…

One can never tell what he truly wants unless faced with many opportunities and has tried them hard enough. That’s definitely true, from what I have been through. Different from most other students, I didn’t start my accounting study until the second undergraduate year. And that’s exactly the time when I know that I finally find the thing I would devote to. Needless to say, that was quite a phenomenal change both academical and psychological, since the major I used to take was Chinese…

Tax cuts played an important role in stimulating economic growth. In the fiscal stimulus package, the government temporarily reduced taxes with a sales tax holiday, tax credits on income and housing taxes, permanently extending the alternative minimum tax, making dividend and capital gains tax cuts, and cutting the corporate tax rate. Since declines in housing prices made people feel less wealthy and thus unwilling to spend, the government provided tax rebates. 29% of total individuals and…

Sec. 511- IRC Sec. 513), the Tax Code allowed the exempt organizations to own and operate unrelated businesses without being subject to any income tax. By 1950 many tax-exempt organizations were competing with taxable entities in profitable business activities. Thus, the Revenue Act of 1950 was enacted which taxed the Unrelated Business Taxable Income of the tax-exempt organization. The Act was legislated to eliminate the unfair competition brought forward by the tax-exempt organization. Such…

According to Teles, there are many reason why the tax code is so messy: it is easier to add things to it than subtract; resource transfers through the tax code seem to enlarge government more than direct spending, regardless of similar effects; the conservative immune system of big government in the tax code is lower than to the big government through expenditure, and finally, people attempting to attain special deals can do it more easily through the tax code than through directing spending,…