1. Three Types of Income (on Final) a. Active (earned) income b. Passive income - income derived from a passive activity such as working interest in oil and gas, often associated with limited partnerships i. Can only deduct passive losses to the extent you have passive income c. Portfolio income (interest, dividend, annuities, sales of stocks and bonds, royalties not derived from an ordinary course of a trader business) 2. In –class quiz d. Owned a apartment
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Debt, Equity, and Taxes By Deen Kemsley* Columbia University and Yale University and Michael G. Williams** University of California, Los Angeles January 10, 2002 We express appreciation for insightful comments from Antonio Bernardo, David Bradford, Roger Gordon, Larry Glosten, Rick Green, Glenn Hubbard, Jack Hughes, Michael Kirschenheiter, Stephen Penman, and workshop participants at the Columbia University Burton Conference and the Yale School of Management Faculty Workshop. Professor
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a. Should Mr. Jones purchase the stock of Smith outright, leaving Smithon intact? What about issuing debt in his Johnson Services company to pay for the Smith company-would that raise debt to equity issues? I would recommend Mr. Jones to purchase the stock Of Smith outright, leaving Smithon intact. This purchase will give profit to Mr. Jones. But buying it would incur a heavy investment of money in the manufacturing equipment. This implies that Smithon will incur losses for 2-3 years. But if we
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El Centro Diner Payrol Report Employee Dependents Rate per Hou Hours Worked Gross Pay Federal Tax State Tax Net Pay % Taxes Vincent Flores 1 $9.90 20.00 $198.00 $34.97 $7.92 $155.11 21.660% Wonda Jefferson 2 11.20 40.00 448.00 80.33 17.92 349.75 21.931% Anthony Sanchez 2 15.90 21.25 337.88 58.31 13.52 266.05 21.257% Alexa Martin 3 11.30 23.50 265.55 39.21 10.62 215.72 18.765% Maria Reyes 1 10.30 21.25 218.88 39.14 8.76 170.98 21.883% Lori Romanoff 2 10.75 40.00 430
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Income Limitations on Lifetime Learning Credit The amount of the Lifetime Learning Credit is limited over a phase-out range. If your adjusted gross income is below the phase-out, your credits are not reduced. If your income is in the middle of the phase-out range, your credits will be reduced. If your income exceeds the phase-out range, you are not eligible to claim the Lifetime Learning tax credit. Below is the income phase-out range for the year 2011: • $51,000 to $61,000 : Single, Head of Household
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CLAW3201 Case Analysis Introduction In Crown Insurance Services Ltd v Commissioner of Taxation (Crown), the issues raised are pertinent to the residence and source of the company under s6(1) of the Income Tax Assessment Act 1936. As cases are determined on the basis of all relevant facts and circumstances of each case, this analysis will focus on how the court’s decision process determined whether Crown had carried on business in the years 2004-2007 inclusive and the existence of central management
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tax just like individuals. However, different business entities are taxed differently. Understanding these basic differences will help you to identify federal income tax obligations as you conduct business with different business formations. Income taxation can impact commercial transactions between different kinds of businesses, such as sole proprietorships, partnerships, franchised, and corporations. Sole proprietorships A sole proprietorship is a small business owned by a single individual. The
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Taxation Assessment Mary Brown, 52, is an advertising executive who had worked with Johnson& Brown Ltd for 10 years. On 1 October 2011 she was made redundant as part of a company re organisation. Listed below are facts that will be considered for tax purposes, each will be examined to determine what her taxable income is. • She received her annual leave payout of $ 14 500 Mary’s annual leave payout of $14,500 is assessable income under s83-A and 83-B. However, as her payout is due to redundancy
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Chapter 18 Lease Financing ANSWERS TO END-OF-CHAPTER QUESTIONS 18-1 a. The lessee is the party leasing the property. The party receiving the payments from the lease (that is, the owner of the property) is the lessor. b. An operating lease, sometimes called a service lease, provides for both financing and maintenance. Generally, the operating lease contract is written for a period considerably shorter than the expected life of the leased equipment, and contains a cancellation clause.
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Issue: How to plan with charitable deductions to public charities, private operating foundations and private non-operating foundations. For this issue, the focus will be on charitable contributions and deductions of individuals. Definitions: Public charities: All organizations, foreign and domestic, described in IRC 501(c)(3) are private foundations except the types of organizations set forth in IRC 509(a)(1), (2), (3), or (4). Some examples of the exceptions that would qualify as public
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