A taxpayer uses
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A: Gross Income: The entire earnings a person obtains before taxes and other deductions are referred to…
Q: the income is derived solely and exclusively from emoluments, from which tax at source is deducted…
A: Tax at source refers to the system in which taxes are withheld or deducted by the payer of income…
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A: Taxable income refers to the base upon which an income tax system imposes tax. In other words, the…
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A: A tax dependent is a child or relative whose traits and relationship to you qualify you for tax…
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A: * As per Bartleby policy, if two different questions are asked then to answer first only. The four…
Q: Identify a false statement: a. If taxpayer derives income from employment only, any other income…
A: Taxable income refers to the income on which the taxpayer is liable to pay tax to the collecting…
Q: Taxes are: Retroactive Prospective Only proportional Personal to the taxpayer
A: Taxes are only proportional
Q: a. Define the term constructive receipt. Explain its importance. b. Explain three restrictions on…
A: Receipts - The act of transferring anything of value from one party to another is acknowledged in…
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Q: Which of the following is an “above-the-line” deduction? (A) State and local taxes (B) Mortgage…
A: Above-the-line deductions refer to the amount subtracted from the annual gross income as per IRS…
Q: Ordinary and necessary trade or business expenses used to generate tax-exempt income would be…
A: Deductible business expenses are expenses that a business incurs in order to earn income or conduct…
Q: In lieu of itemizing deductions, a taxpayer can elect to use or claim: a. deduction for AGI…
A: Taxpayer can choose itemized deduction in lieu of standard deduction. Itemized deduction means those…
Q: To be registered as a tax agent you need to meet the fit and proper person test. True or False
A: A registered tax agent seems to be a professional accountant who studied tax to register with the…
Q: he following individuals are required to file an income tax return, except: a. Non-resident aliens…
A: Answer: All individuals are required to file income tax return except correct answer is option ( d)…
Q: Taxable income differs from financial accounting income in that It requires a change in the…
A: Taxable Income The base income used to calculate taxes is known as taxable income. It may include…
Q: In terms of the tax formula applicable to individual taxpayers, which, if any, of the following…
A: Deductions for AGI means above the line deduction which a taxpayer can deduct from his gross income…
Q: The basic issue in deciding whether to record a valuation allowance for a deferred tax asset is…
A: A deferred tax asset is something that reduces future taxable income on a company's balance sheet.…
Q: n situations where there is no requirement for the taxpayer to provide documentation to substantiate…
A: The EIC is a tax benefit for low to moderate-income individuals and families, and it's meant to…
Q: The rules on holding period shall only apply where the taxpayer is an individual and the dealing…
A: Holding Period:-It is a period that helps in determining the taxing of capital gain or losses. A…
Q: What is the principle behind IRS tax free or tax deferred transaction
A: An individual retirement account is a financial instrument created for people to save for their…
Q: Which is a deductible tax expense? Surcharges and penalties
A: Deductible tax expenses In a business entity the deductible tax expenses which includes any ordinary…
Q: A major objective of MACRS is to: O A. Ensure that the amount of cost recovery for tax purposes will…
A: Modified Accelerated Cost Recovery System is method of depreciation in taxation. In this method…
Q: Which of the following is correct? a. A person with vatable sales or receipts not exceeding the…
A: Value-added tax: The value-added tax refers to an indirect tax or sales tax that lived on the…
Q: When is income recognized for a cash method taxpayer vs. an accrual taxpayer? Explain the hybrid…
A: Under the cash-receipts method, cash, property, or services are included in the taxpayer's gross…
Q: For each item listed below, indicate whether it involves a: a. permanent…
A: PLEASE LIKE THE ANSWER, YOUR RESPONSE MATTERS The items should be matched as follows: b 1…
Q: Under the cash method of tax accounting, tax deductions are taken when: a, Expenditures are made…
A: Answer: Under the cash method of tax accounting, tax deductions are taken when expenditures are…
Q: If an individual is claimend as a dependent by another taxpayer, qualified tuition and expenses paid…
A: A tax dependent is a child or relative whose traits and relationship to you qualify you for tax…
Q: the registered taxpayer is required to prepare an own invoice to report the output tax on imported…
A: In the context of Value Added Tax (VAT) or Goods and Services Tax (GST), output tax refers to the…
Q: Define the term constructive receipt. Explain its importance. Explain three restrictions on the…
A: Constructive receipt- Under this concept, it is assumed that a taxpayer has received income, even if…
Q: How is Gross Income defined in the Tax Code and what are the implications to individual and business…
A: Hi, since you have asked multiple questions, we are answering the 1st question for you. To get the…
Q: Which one of the following is not true of itemized deductions of an individual taxpayer?…
A: The third option statement is incorrect, that is, residential interest is a common example of an…
Q: Recognition of tax benefits in the loss year due to a NOL carry back involves: O The establishment…
A: Recognition of Tax Benefits in the loss year due to NOL carry back Basically its a treatment of Tax…
Q: taxpayer must always include his or her state income tax refund in income. True or False
A: Income tax:- Income tax means whenever an assessee, in a financial year earns certain income which…
Q: his is an item in the balance sheet relating to the unpaid portion of an income already taxed.…
A: Answer: Balance sheet consists of assets and liabilities as part of financials.
Q: A taxpayer may pay percentage tax, and VAT at the same time O True O False
A: Value Added Tax is a tax that is levied on the services and goods and paid to the government by the…
Q: What are some of the reasons that the components ofincome tax expense should be disclosed and a…
A:
Q: In addition to the basic tax assessed on the taxpayer, the following civil penalties will also be…
A: The correct answer for the above mentioned question is given in the following steps for your…
Q: When a person is claimed as a dependant by another taxpayer, qualified tuition and expenses paid by…
A: A tax dependent is a child or relative whose traits and relationship to you qualify you for tax…
Q: unts that are made available to a taxpayer without substantial restrictions are included in gross…
A: In income tax there are different types of doctrine for different types of recognition of income and…
Q: remedy in recovering the overwithholding? a. Claim the overwithholding as tax credit for the year b.…
A: Tax is a liability for the company calculated on the income earned by the company and paid to the…
Q: Lists some common expense-related deferred tax liabilities.
A: Deferred Tax Liability: It refers to the obligation that is to be paid in the future time period.…
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- Which of the following statements is correct? a.The taxpayer has the right to object to a tax assessment anytime after receiving an Assessment Notice. b.The taxpayer must state the grounds of objection in his/her Notice of Objection c.The Tax Commissioner must accept a Return once it is filed on time. d.The Taxpayer has the right to object to an assessment within the timeframe specified on the Assessment Notice.Which of the following accurately describes when a taxpayer may report capital gain/loss transactions directly on Schedule D instead of using Form 8949?All are true except: a. OSD is a substitute for itemized deduction. b. The OSD relieves the taxpayer of the responsibility to deduct withholding taxes. c. Taxpayers who choose OSD are not required to submit their financial statements with their ITR. d. The option to claim OSD must be signified in the income tax return, otherwise, itemized deduction is presumed
- Determine the business tax applicable for the following independent assumptions. Put a check mark on the applicable law. Put the applicable tax rate.dentify the rule that determines whether a taxpayer must include in income a refund of an amount deducted in a previous year: Multiple Choice tax refund rule. constructive receipt return of capital principle. tax benefit rule. None of the choices are correctWhich of the following accurately describes the tax implications of investing in real estate and rental properties? a) Real estate investments are not subject to taxation. b) Rental income is tax-exempt. c) Rental income is subject to taxation, and expenses related to real estate investments may be deductible. d) Rental income is taxed at a fixed rate determined by the IRS.
- TRUE OR FALSE? Tax assessments made by the BIR must be in writing containing the law and facts as the basis for assessment.What are the powers of the Commissioner-General, if a taxpayer fails to file tax return on time?Which of the following causes a temporary difference between taxable and pretax accounting income? A. Investment expenses incurred to generate tax-exempt income. B. MACRS used for depreciating equipment. C. The dividends received deduction. D. Life insurance proceeds received due to the death of an executive.
- 1.Determine the business tax applicable for the following independent assumptions. Put a check mark on the applicable law. Put the applicable tax rate. Situation OLD LAW TRAIN LAW CREATE LAW GS/GR does not exceedP1,919,500 and the taxpayer isVAT-registered GS/GR exceed P1,919,500 andthe taxpayer is VAT-registered GS/GR exceed P1,919,500 and the taxpayer is not VAT-registered GS/GR does not exceedP3,000,000 and the taxpayer isVAT-registered GS/GR exceed P3,000,000 andthe taxpayer is VAT-registered GS/GR exceed P3,000,000 and the taxpayer is not VAT-registered GS/GR does not exceedP3,000,000 and the taxpayer isnot VAT-registered; taxpayeropted to use 8% preferentialincome tax on individuals Cooperatives Self-Employed andProfessionals with AnnualGross Sales/Gross Receipts notexceeding P500,000If an amount is ordinary income to a recipient: O it must also be a capital gain O It may also be included in the recipient's assessable income via a statutory income provision but the rules about ordinary income will prevail. O It may also be included in the recipient's assessable income via a statutory income provision. O fit is also included in the recipient's assessable income via a statutory income provision then usually the statutory income provision will prevail. A tax differs from a user charge in a user pays system in that: A user charge is applied arbitrarily in cases of emergency whereas a tax is applied systematically and according to predetermined principles. The government is obliged to repay the monies that it raises through a tax. A user charge is applied to a particular good or service supplied by the government. The government is obliged to pay interest on monies that it raises through borrowings.Which of the following statements are correct? i. A VAT invoice should be pre-numbered and must show the: - Words “Tax Invoice” (shown prominently) ii. A VAT invoice should display the total amount of the consideration and the VAT. iii. A VAT invoice should display the name and address of the registered taxpayer to whom the taxable supply is made. iv. A VAT invoice should display the date of the taxable supply. a.All of the above b.i, ii and iv c.i, and iii d.i only