Discuss tax issues of the following:
what is taxable and what is deductible? explain why?
1-Losing money in a business for 2 years, but prior to that madeprofit for 2 years.
2-Giving gift to suppliers for exchanging business.
3-Paying fines for criminal charges related to the business.
4-Giving $500 to Wii lobbying group.
Discuss tax issues of the following:
what is taxable and what is deductible? explain why?
1-Losing money in a business for 2 years, but prior to that madeprofit for 2 years.
2-Giving gift to suppliers for exchanging business.
3-Paying fines for criminal charges related to the business.
4-Giving $500 to Wii lobbying group.
Related questions
| 1. Income earned but unpaid at the time of a decedentâsdeath is deemed to be income in respect of a decedent (IRD). Whichof the following statements concerning IRD is correct? a) The income must be reported on the decedentâs final federalincome tax return. b) The income is taxable to the person or entity receivingit. c) IRD includes income earned by the executor on estateassets. d) The character of the income as taxable or nontaxable ischanged when passed to the recipient. |
| 2. The federal estate tax is a) A tax on the right of a decedent to transfer property b) A tax on the right of a beneficiary to inherit property c) A tax levied only on a decedentâs probate property d) An excise tax levied on the privilege of accumulatingwealth. |
| 3. The owner of a successful business wishes to retireand sell the business to her daughter. The business is worthsubstantially more than the ownerâs basis. The owner and herdaughter have agreed to an installment sale. Which of the followingstatements concerning this sale iscorrect? a) The sale price should be lower than the fair market value ofthe business to avoid estate or gift tax complications. b) The installment period must be limited to 10 years or less toavoid adverse estate tax consequences. c) The principal payments payable after the sellerâs death avoidestate inclusion. d) The interest rate specified should be reasonable to avoidadverse gift or income tax consequences. |
| 4. Which of the following statements concerningguardians is correct? a) A guardian for personal care is called a guardian adlitem b) A special guardian can be appointed by the court to protect aminorâs rights in a legal proceeding. c) A guardian named in a deceased parentâs will is binding onthe court. d) A guardian receives the legal authority to act from thedeceased parentâs will. |
