Tax exemption

Ted Builder is an Orthopedic surgeon who runs a successful medical practice in Park City, Utah. He works 60 to 70 hours during the ski season and afternoons during the rest of the year. He earns $200,000 a year. Over the last 20 years, Ted as acquired 316 acres in and around Eden, UT. These properties were purchased because Ted believed that Powder Mountain would become a high-end resort and make the land more valuable. Ted has not actively developed any of the parcels of land. He currently…

Republicans count on tax reduction to all social classes making taxes more clear with diminished regulations. Although…

definition, a flat tax is a single tax that is applied to an entire base regardless of income. The idea of a flat tax seems ideal, yet it is too simple. Steve Forbes’ book, Flat Tax Revolution, holds nothing back when describing the current federal income tax code. He refers to the current system as appallingly, confusing and complex. According to Forbes (2014), “The federal tax code is beyond redemption. We should kill it and institute a flat tax.” The United States uses a progressive-rate tax…

1. Case study: Tax Avoidance and Tax Evasion As stated in the text, the biggest challenge the tax administration has is cheating (Rosen & Gayer, 2014). There is difference between tax avoidance, which is legal and a good business practice, and tax evasion, which is failing to pay due taxes (Rosen & Gayer, 2014). The public finance principle of tax avoidance is efficient. In the case reviewed, it is suggested that having a fiscal year end on December 31st drives companies to be more aggressive…

Macomber brought new issues to income tax. This case defined the “income” mentioned in the sixteenth amendment. The issue was if stock dividend is considered a taxable event. Technically, a shareholder owns part of the company. Shareholders process stocks or share that worth money but not direct…

A tax practitioner's main responsibilities are providing clients or taxpayers proper and professional advice, as well as preparing and filing accurate tax returns. Their duties include informing the clients of any taxation requirement and possible conflicts of interest, as well as analyzing the clients’ taxation situation. Moreover, when performing in tax practice, tax professionals should interview their clients to understand their personal situation and determine the proper form to be prepared…

Under the Income Tax Assessment Act 1997, a taxpayer's total capital gain consists of both net capital gain subtracted from their net capital losses for the financial year (July 1st to June 30th). Variations on income tax liability depend on whether the taxpayer has made either a capital gain or a capital loss.1 Capital gains occur whenever costs are less than the gains on a capital asset. Conversely, capital losses arise whenever costs exceed a gain. 2 The most common event for taxpayers…

The South African treaty does not tax entertainers or sportsmen on income earned up to $7,500 unlike the US Treaty which does not tax them on income earned up to $20,000. However, this does not exempt them from withholding as it is not always certain that the earnings will be limited to the exempt threshold. The South African treaty also references the exemption of tax on income received from the government of the home state for performances in the other state. The United States limits the…

Change, 2015) This act helped millions of dependent Americans become independent from the government and taught them how to provide for themselves and their family through hard work. Another change that Clinton made was the increase to the earned income tax credit (EITC) the text book expresses that this program helped supply families of three or more with an income of $49,078 or less with extra financial support after they filed their income taxes at the end of each year. The welfare reforms…

Release the Green Marijuana is an herb mistaken for a drug and is looked upon as dangerous, when in fact it is anything but dangerous. Because of people’s ignorance and lack of knowledge within marijuana, it has become illegal for all the wrong reasons and should greatly be reconsidered for legalization. There is so much wrong being said about marijuana. However, legalizing marijuana would benefit the country in many ways, such as; taxing marijuana, healing sickness, and the reasoning is not…