...in matters pertaining to exclusion of income, deductions for expenses related to excluded income, and deductions for business expenses. We determined that the taxpayer owes taxes on improperly excluded income and improperly deducted expenses as a double benefit. Facts: * Taxpayer excluded income in the amount of $1000 per month, claiming that part of his compensation for work as a minister is a rental allowance from his church. * Taxpayer uses the rental allowance to make payments on mortgage, interest, and property taxes of a home he is purchasing. * Taxpayer rents basement of home to a renter and receives $400 per month for this. The basement space does not have a separate entrance. Taxpayer reports this rental income on Schedule E. * Taxpayer deducted expenses for 80% of mortgage interest and taxes on Schedule A and 20% on Schedule E. Issues: * Is the exclusion of a rental allowance for a minister, provided in IRC §107(2), a violation of the Establishment Clause of the First Amendment of the U.S. Constitution? * May the taxpayer exclude a rental allowance from income when he is using it to purchase income-producing property? * Is the deduction of expenses a double benefit if the expenses are incurred for items related to excluded income? * Does a business use exist that justifies the separation of expenses between Schedule A and Schedule E? Authoritative Support: Recently, the constitutionality of the exclusion for a minister’s housing allowance...
Words: 1778 - Pages: 8
...treaty stipulations) for the exercise of “effective jurisdiction” (the problem of situs in taxation). (b) Constitutional limitations protection of the laws 1. Due process of law and equal and equal protection of the laws 2. No imprisonment for non-payment of a poll tax 3. Non-impairment of contracts 4. Power of the Prime Minister to veto any particular items in a revenue or tariff bill 5. Uniformity in taxation 6. Authority of prime Minister to fix within specified limits, tariff rates 7. Exemption of charitable institutions, churches, etc. 8. Non-impairment of the jurisdiction of Supreme Court on tax cases Classifications of taxes: (a) According to the purposes for which it is applied 1. General – imposed without predetermined purpose and therefore, may be appropriated for general public purposes. 2. Special – imposed under special laws and the tax collected may not be appropriated or diverted to some purposes other than those provided in the special law. (b) According to who bears the burden of taxation 1. Direct – those collected or demanded from subjects desired or intended by law to be liable, like income tax, etc. 2. Indirect – imposed by law on certain persons...
Words: 1937 - Pages: 8
...Their combined income is follows: | |Wife |Pastor |Parsonage Allowance | |2004 |15500 |22000 |8500 | |2005 |16000 |24000 |8700 | |2006 |16500 |26000 |9500 | |2007 |16500 |30000 |12000 | |2008 |20100 |35000 |18000 | |2009 |25000 |38500 |24000 | |2010 |26500 |42000 |30000 | Pastor built his own home in 2008 and there was no mortgage on the house. He has promised you that if make him clean with the IRS, he will guarantee you a place in heaven. Law and Analysis: Publication 517 Social Security and Other Information for Members of the Clergy and Religious Workers Ministerial Services Ministerial service, in general, is the service you perform in the exercise of your ministry, in the exercise of your duties as required by your religious order, or in the exercise of your profession as a Christian Science practitioner or reader. Income you receive for...
Words: 3527 - Pages: 15
...Date: 23/11/2012 Student Number:091201670629 Compulsory Assignment ____________1st chance__________ Subject Public Administration Assessment: Teacher: __ Signature ________________________ Local Teacher Result: _____ %, or grade ________ Final result: _____________ Date: ________________ The analysis of the Welfare system in your country and link to poverty reduction measures Esping-Anderson's welfare regimes Mr. Esping-Andersen is one of the most influential theorists and researchers the development of the welfare state. His most important work is The Three Worlds of Welfare Capitalism which was first empirically tested theories about the different types of welfare regimes in the developed countries. This work has made a very strong impact on research in the area of social policy. By Esping Andersen there are three types of welfare regime: * social democratic regime; * conservative-corporatist regime; * liberal-democratic regime. The welfare state is a specific historical construct that has developed between the thirties and sixties, based on a new social contract between the state and citizens, which provides basic social redistribution of risk. Social-democratic regime is called the Scandinavian...
Words: 1953 - Pages: 8
...(Word count: 3093) Social Sciences for Social Work (SWK 2012) : Examine the meaning of the concept of social exclusion and discuss how social work may respond to the reality of social exclusion. The paper will look at ‘what is social exclusion’ and demonstrate how various groups and individuals are affected by it. It will further examine ‘what is social work’, its tasks and how these address social exclusion. This paper cannot examine all aspects of social exclusion, but will use examples of where social work is relevant in dealing with the issue. This paper looks at social work practice in particular in addressing issues arising from; poverty, unemployment, social policy and social work practice in relation to the social exclusion of people with a mental illness and or learning disability and the conflicting demands for preventative work with statutory responsibilities. Ruth Levitas (2010) quoting Duffy (1995) and the Social Exclusion Unit (1997) argues that the definition of social exclusion is vague but refers to possible definitions as the 'inability to participate effectively in economic, social, political and cultural life, alienation and distance from the mainstream society'. and as 'a shorthand label for what can happen when individuals or areas suffer from a combination of linked problems such as unemployment, poor skills, low incomes, poor housing, high crime environments, bad health and family breakdown'. Banks (1995) states that social work is a difficult...
Words: 3374 - Pages: 14
...Question 1 Section 1 1.1 – P1 – US has maintained a certain degree of dominance in the region that has ensured some degree of regional stability. P2 – A fundamental branch of Chinese soft power and a cornerstone of the Beijing consensus is the multilateralism that characterizes China’s shifting diplomacy. P3 – The rise of East Asian multilaterals in the wake of the Asian financial crisis and the formation of new regional bodies, such as ASEAN +3, has been a direct response to the failures of APEC and the IMF. Conclusion – The harmonious engagement of regional actors in multilateral frameworks has significant capacity to contribute to regional stability, rendering Washington’s role as an extra regional balancer redundant. The rise of a unified East Asia will undoubtedly recalibrate regional security arrangements. 1.2 – The US is a regional balancer due to its hub-and-spoke system. Many theories support this such as hegemonic stability theory, which priorities unipolarity challenges from disputing the status quo but with the failure of IMF and China’s diplomacy shift, China has a more active role with the region becoming more influenced by Beijing Consensus. Regional collaboration has increased with ASEAN +3 of Japan, China, and South Korea. This shows a power shift away from the hub-and-spoke alliance system (Ward, Alex. 2013). Section 2 US will not be the indispensable power in East Asia in the time to come as they are slowly losing their power because ASEAN +3 are...
Words: 2310 - Pages: 10
...LOKPAL BILL Submitted to: Mr Ashok Mehta Submitted by: Ms Niharika Sacheti, B.A.-L.L.B. (Hons) 3rd semester Jaipur National University CONTENTS * Introduction * Origin of Lokpal * Why the need of Lokpal * History * The Lokpal Bill, 2011 * Powers of Lokpal * Advantages * Loopholes of Lokpal * Jurisdiction * Birth of Jan-Lokpal * Differences between Lokpal and Jan Lokpal * My Views: a. Should PM be under the purview of Lokpal b. Should Judiciary be under the purview of Lokpal c. Should CBI be under the purview of Lokpal d. Should Bureaucrats be under the purview of Lokpal Introduction: A Lokpal is a proposed ombudsman (Legal Representative) in India. The word is derived from the Sanskrit word "lok" (people) and "pala" (protector/caretaker), or "caretaker of people." Origin of Lokpal: The basic idea of the Lok Pal is borrowed from the office of ombudsman in Scandinavian (Sweden, Denmark, Finland, Norway) countries. The office of the ombudsman originated in Sweden in 1809 A.D. Ombudsman is a Swedish word and refers to an official whose job is to investigate complaints from the public against government officers, who is appointed by the parliament to dispose of cases relating to the executive and the judiciary. Similar institutions were established after that in many democratic republican countries as safeguards against the attitude of officials and higher government's...
Words: 4416 - Pages: 18
...events have been primarily interpreted, especially amongst the political class, through a lens that emphasises criminality. ,one prominent argument advocates that the cause of the unrest was the moral decay of ‘a feral underclass’ (Scrambler; Grover 2011) However, many of such explanations tend to be mostly speculative and they often fail to provide a consistent account of the causes of the riots based on solid evidence (the LSE/theguardian, 2011, Solomos, 2011). Against this background this essay attempts to disentangle the motives of the London 2011 riots, by focusing on the relations of causality between factors and events that led to the burst of the unrest. It argues that urban social inequalities as well as uneven processes of exclusion and inclusion of a marginalised class are the main factor underlying the disturbances. Yet this essay claims that these riots need also to be analysed in the very specific context in which they have arisen: the financial crisis, a society which is becoming increasingly consumerist in its orientation, the disputable role of the police, loss of faith in the political class and hopelessness towards the future amongst the urban youth. In the first part this essay analyses inequality indicators and trends embracing the multidimensional nature of social inequality (Bradley, 1996)....
Words: 3372 - Pages: 14
...to understand the impact of Financial Inclusion on Indian Economy. The study focuses on the financial exclusion and inclusion. It concentrates on the various reasons, causes and consequences of financial exclusion. It also focuses on the initiatives taken by the Government and RBI to expand the coverage of financial inclusion. The various policy been developed with respect to the financial inclusion. The study has majorly focused on 4 objectives: * To understand the reasons for Financial Exclusion in India * To analyze the extent of financial inclusion coverage in India * To list the various measures & initiatives of state / central government with respect to financial inclusion * To understand the link between Industry growth and financial inclusion With the upcoming years there is a strong hope that the vision and mission of financial inclusion will be successful and a large group of customers would enjoy the benefits of banking services. The financial illiteracy of rural masses will no more be a hindrance in the development of strong healthy sustainable economy. Therefore, it is suggestible to develop a global network of policy makers in order to enable the country to adapt and scale up successful innovations and access to savings should be a top priority, thereby to ensure a shift from credit to savings. CHAPTER I: INTRODUCTION FINANCIAL EXCLUSION Globalization has enabled the rise of...
Words: 18206 - Pages: 73
...deteriorating economy and keep its fragile public finances under control. • Government cohesion will be hindered by divisions in the ruling coalition, but the Economist Intelligence Unit expects it to remain in office. Mr Berlusconi has a comfortable parliamentary majority and the centre-left is in disarray. • GDP contracted by 1% in 2008. Our baseline forecast is that it will contract by a further 4.6% in 2009 and by 0.6% in 2010. • The fiscal deficit is forecast to rise from 2.7% of GDP in 2008 to 5-5.5% of GDP in 2009-10. The public debt/GDP ratio is expected to be about 120% by the end of 2010, up from 105.8% in 2008. • Much larger deficits cannot be ruled out as our forecast assumes that the minister of the economy, Giulio Tremonti, will resist pressure for tax cuts to boost the economy and interest rates do not rise sharply. • Inflation (EU harmonised measure) will average 0.6% in 2009 and 0.9% in 2010, well down on 3.5% in 2008, reflecting weak demand and lower commodity prices. Monthly review • In early May it was announced that Mr Berlusconi's wife was seeking a divorce, following another public spat with her husband. Opinion polls suggest that it has not had an immediate impact on his high approval ratings. • Mr Berlusconi has announced that the G8 summit of leading industrialised nations will be held in the earthquake-devastated city of L'Aquila rather than on the...
Words: 4193 - Pages: 17
...Trade policies in Vietnam have restrictions in their trade agreements to protect their country interests and those of its people. A major protection from their perspective is the ability to protect domestic production. However the official powers recognize the benefits of participating in trade agreements with other countries. To that extent they have entered into traded agreements and joined numerous official trade unions with many countries, including the United States. Vietnam has applied for entrance into the WTO (World Trade Organization) and joined ASEAN(ASEAN Free Trade Area) in 1997 with the intent to comply with trade agreements rules as defined by AFTA (Asian Free Trade Area) and CEPT (Common Preferential Tariff Scheme) (Department of Planning, 2006).The motivating factor for Vietnam to join ASEAN with its accompanying trade guidelines of AFTA and CEPT, among others, was to raise awareness and understanding of tariff traded items with their related and non-related measures, called NTMs and non-tariff trades barriers, called NTBs (United Nations Development Project, 1999). To trade within a given market such as country versus international arena you must know the guidelines of a given entity to know boundaries and comply. This is the very purpose of all the various trade agreements. The agreements provide benefits and standards that can be used for any and all companies and countries. Additional agreements are created and maintained for compliance and repercussions...
Words: 2452 - Pages: 10
...interest. And, the press is filled with reports of "brainwashed" disciples and parents "re-kidnapping" their children. The 1978 EOATRI textbook topic on Churches is a good summary of the major problems we encounter in administering the IRC 501(c)(3) "religious purposes" exemption. This discussion is meant to supplement that topic. We intend only to highlight new developments and the increased interest in the area. 1. Inurement and Tax Avoidance Schemes IRC 501(c)(3) clearly precludes exemption for all organizations (churches and religious organizations too) whose net earnings inure to the benefit of a private shareholder or individual. The Founding Church of Scientology v. U.S., 412 F.2d 1197 (Ct. Cl. 1969). Equally as clear is the Federal income tax principle that a taxpayer's assignment or...
Words: 8716 - Pages: 35
...62; 3401 Court Name: U.S. Court of Appeals, Fourth Circuit, Docket No.: Docket No. 942609, Date Decided: 7/31/1995. Prior History: Tax Court, (1994) curiam. 103 TC 378, affirmed per Tax Year(s): Year 1988. Disposition: Decision for Govt. 60 F.3d 1104. Related Proceedings: Related Proceedings at Weber v. Commissioner, 103 T.C. 378 (1994) Cites: 76 AFTR 2d 955782, 60 F3d 1104, 952 USTC P 50409. HEADNOTE https://checkpointriagcom.umiss.idm.oclc.org/app/view/toolItem?usid=11f6a7l15d8cd&feature=tcheckpoint&lastCpReqId=2242675 1/17 10/16/2015 Checkpoint | Document 1. Business deductions—employee or independent contractor. 4th Cir. affirmed ruling that ordained Methodist minister was church employee and that as such, claimed business expenses were only allowable as miscellaneous itemized deductions, per curiam: church controlled taxpayer's ministry and required him to perform certain duties; taxpayer couldn't discontinue regular church services, refuse bishop's appointments, or establish own church; and taxpayer wasn't required to invest...
Words: 7834 - Pages: 32
...Child abuse is a state of emotional, physical, economic and sexual maltreatment meted out to a person below the age of eighteen and is a globally prevalent phenomenon. It has serious physical and psycho-social consequences which adversely affect the health and over-all well-being of a child. It may include physical or mental ill-treatment, sexual abuse, malnutrition and many others which are responsible for hindrance of a healthy growing body of a child. Children who are normally born in poor families areoften subjected to work at shorter ages and are usually underpaid and harassed both mentally and physically. Child abuse is a violation of the basic human rights of a child and is an outcome of a set of inter-related, social, psychological and economic factors. While certain child abuse and neglected issues are common in almost all countries at the global level such as physical abuse, sexual abuse, emotional and psychological abuse, problems of street children, there are also many issues which are prevalent only in certain regions of the world.For instance, in Asia where population density is high, the issues of child labor and child sexual exploitation are also high. The largest population of children in the world live in South Asia and majority of these children lack access to proper health care, nutrition and education. This reflects the socio-economic reality of the developing countries of the Asian region. The main...
Words: 2518 - Pages: 11
...as to get the largest possible amount of feathers with the least possible squealing.” Today’s economists have rather different ideas of what constitutes a good tax system. There is a popular belief that a tax system should follow two main principles: fairness and efficiency. Scottish economist Adam Smith laid out these principles in his landmark treatise The Wealth of Nations (1776). Fairness Economists consider two principles of fairness to determine whether the burden of a tax is distributed fairly: the ability-to-pay principle and the benefits principle. Ability-to-Pay Principle The ability-to-pay is a taxation principle which states that taxes should be based on the ability to pay. That is, those who have more income should pay...
Words: 2617 - Pages: 11
