SWFT Corp Partner Estates Trusts
42nd Edition
ISBN: 9780357161548
Author: Raabe
Publisher: Cengage
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Students have asked these similar questions
If a taxpayer chooses to have his dividends automatically reinvested in the corporation's stock, they are not reported on
the tax return nor taxed because he did not receive the money.
Choose one
a. True
answer.
b. False
Which of the following items is generally not taxable on a Federal return?
Choose one
a. Income from illegal activity
answer.
b. Inheritance
c. Fees received for jury duty
d. Tips under $20 a month
e. None of these
In appropriate situations the IRS may assert
That the Corporation be disregarded as a sham or nominee
That income reported by the Corporation belongs on the shareholder’s personal Form 1040 Schedule C under the assignment of income principles.
Income is reallocated under §482 to unrelated organizations
Tax benefits may be denied under §269 if control of a Corporation is acquired for a purpose of avoiding federal income tax.
All of the above
All of the above except C
All of the above except D
All of the above except C & D
Which of the following is wrong?
Exempt corporations are subject to income tax on their income from unrelated activities.
Government-Owned and Controlled Corporations are subject to regular corporate income tax.
Exempt corporations who filed late are not subject to penalties because they have no tax due.
None of the above.
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- A taxpayer received Form 1099-A with box 5 checked, indicating recourse debt. This informs the tax preparer that: a) There may be taxable income associated with this event. b) There cannot be taxable income associated with this event. c) This document is not reporting cancellation of debt income, so this is not relevant unless a Form 1099-C is also received. d) There can be capital gain from this event, but not ordinary income.arrow_forwardFor an accrual basis taxpayer, the all events test is not met until economic performance occurs. Economic performance occurs: (a.) When a corporation receives its completed tax return from its accountant (b.) When the employees of self-insured corporation receive medical treatment (c.) When a corporation purchases a $5 million annuity in settlement of $20 million award to a plaintiff/customer in a production liability lawsuit (d.) On March 1, when a corporation uses a leased copy machine to make 12,000 copies for the month of March and it must pay $.10 per copy for copies mad in excess 10,000 plus a flat fee of $500/month.arrow_forwardThe tax law requires that capital gains and losses be separated from other types of gains and losses. Among the reasons for this treatment are: a."Long-term capital gains may be taxed at a lower rate than ordinary gains" and "Net capital loss is deductible only up to $3,000 per year for individual taxpayers". b.Short-term capital losses are not deductible. c.Net capital loss is deductible only up to $3,000 per year for individual taxpayers. d.Long-term capital gains may be taxed at a lower rate than ordinary gains.arrow_forward
- The following reasons may be given by a taxpayer in refusing to pay his tax liability. Which is not acceptable for legally refusing to pay the tax? o That he will derived no benefit from the tax. o That he has been deprived of due process of law o That the prescription period for the collection of tax has lapsed. o That there is lack of territorial jurisdiction (And please explain the reason why, thank you)arrow_forward3. Omega Corporation purchased a motor vehicle worth P1,400,000 for the use of its executive. It was registered under the executive's name despite the agreemnt that it should be used partly for the company's benefit. How much is the fringe benefits tax?arrow_forwardWhich of the following statements, if any, is false? O An individual can get lower Federal tax rates on long-term capital gains as compared to short-term capital gains. O A corporation can get lower Federal tax rates on long-term capital gains as compared to short-term capital gains. DAn individual has a taxable capital gain if they sell their personal car at a gain O Normally a taxpayer must own a capital asset for more than one year in order to get long-term capital gain (or loss) treatment on the sale of that asset. None of the above - they are all true statements.arrow_forward
- WHAT ARE THE BASIC PRINCIPLES OF A SOUND TAX SYSTEM? HOW ARE THE GOVERNMENT SHOWS THAT SUCH BASIC PRINCIPLES WERE APPLIED IN THE CURRENT TAX SYSTEM WHAT ARE THE DIFFERENCES AND SIMILARITIES OF THE APPLICATION OF OPTIONAL STANDARD DEDUCTION BETWEEN CORPORATION AND INDIVIDUAL? WHAT IS SPECIAL ALLOWABLE ITEMIZED DEDUCTION? IS IT APPLICABLE TO RESIDENT FOREIGN CORPORATION? GIVE 1 EXAMPLE. WHAT IS NET OPERATING LOSS CARRY OVER? CAN IT BE APPLIED TO QUARTERLY INCOME TAX RETURN?arrow_forward1. All associations or corporations enumerated under Sec. 30 of the NIRC on exempt association are automatically exempt from income tax. 2. Exemption from tax is privilege viewed with disfavor by the state. As such a taxpayer, to become exempt, must comply with the requirements for tax exemption by laws or regulations. A= 1st statement is true, second statement is false. B=1st statement is false, second statement is true. C= Both statements are false. D= Both statement are true. OA O O D Parrow_forwardf a business owner paid for the business expenses with their personal account, and those expenses would otherwise be deductible, they: A. CANNOT be deducted on the tax return because they weren't paid for from a business account. B. CAN be included on the tax return as long as proof of the expenses is sent with the return. C. CAN be deducted on the tax return. D. CANNOT be deducted because the IRS requires separate business and personal bank accounts.arrow_forward
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