Taxation in the United States

When Should Your Company Issue Restricted Equity vs. Options and When is 83(b) Applicable to Recipients’ Equity? Since forming your entity, you issued restricted equity to recipients regularly, but you closed a recent funding round. And this week your attorney says you should no longer issue restricted equity, and instead, you need an option plan and to issue options. What is he talking about and why is it necessary? Plus, when should the recipients file an 83(b) election? Restricted Equity vs…

you know that churches cannot speak out against controversial events that are happening because of the backlash that can occur from the state? In 1970 Bob Jones University lost their tax exemption because they wouldn’t admit blacks that were unwed because of their Interpretation of biblical principles. This is just an example of how if you don’t do as the state tells you they will take away every privilege that was expended towards you. Churches for example are being forced to respect the law to…

Gender inequality is a major problem on why this issue has gotten so much attention. There are a few states in the United States that have abolished this tax and gotten rid of this gender injustice. According to California assembly women Cristina Garcia she states "The reality is, these institutions of power are male-dominated. It's either they're not thinking about it, or they're afraid to approach it" (p.3). Why are people afraid…

A “lifetime gifting program” can be annually used by Meg to each of her children through “gift-splitting elections” (“Gift and Estate Tax Planning” 14-22). Assets must be transferred in a maximum rate into “living trusts” in order to eliminate “probate,” and induce as “pour over” in case the property is “still held at death” and is intended to be allocated as living trust (“Gift and Estate Tax Planning” 14-22). Meg can consider having a “bypass trust” and a “marital deduction trust.” The…

Three Reasons to Consider a Term Life Insurance Policy in Your Senior Years Term life insurance policies have become increasing important in estate planning, especially for those of limited economic means. The following are three ways they may be able to help you. To not be a burden on family members If you don't have much wealth, at least not enough to cover your funeral expenses, a term life policy may be a good idea. There are life insurance policies that are designed to pay for your…

For this tax research assignment the “12-month rule” in the accrual basis of accounting is applicable to this problem. The “12-month rule” states that taxpayers are not required to capitalize an expense if it is paid or incurred to create a right or benefit that does not extend beyond the earlier of 12 months after the first date of the right or benefit or the end of the tax year following the tax year in which the expense was paid or incurred. Basically if you have paid or incurred an expense…

The basics of social welfare organisations. Social welfare is different from the standard of living, and involves factors such as quality of the environment, extent of drug abuse, availability of social services as well as spiritual and religious aspects of life that determines the quality of life of an individual living in a society. A social welfare organisation is nothing but a nonprofit civic organisation that aims at social welfare and has been created under section 501 ( c )(4) of the…

Trump Versus Clinton: The Issues This election has proven to be a rather unusual demonstration of American politics. We have one candidate that has never held public office and one who wishes to be the first woman president of the United States. Both candidates have seen their share of controversy. Clinton with her email scandal and Trump with his obscene Many people believe they have to choose the “lesser of two evils.” After inspecting candidates stances on climate change, common core,…

Whether the gain generated from the sale of painting to be chargeable as capital gain in the hand of assessee? Law:  Section 6 of the Income Tax Law defines the assessable income. According to it, assessable income of the taxpayer for the relevant income year means the aggregate of ordinary income and taxable statutory income.  S104 of the Income Tax Act provides that the assessee must include in his/her assessable income the net amount generated by way of sale of capital asset held by…

question was whether or not the location of the property transferred affects the applicability of Section 1031, which addresses the nonrecognition of a gain. For the particular taxpayer discussed in this ruling, he had exchanged a ranch in the United States for a Ranch in a foreign country and received $250,000 in cash. The taxpayer originally realized a gain of $300,000 on this exchange. Upon examination, it was determined that the location of the property should not affect the applicability of…