Sarah wants to start his own sports clothing shop. She doesn’t know if she should set up a company or sole trader. Discuss with Sarah the considerations of each option. (Tax
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Sarah wants to start his own sports clothing shop. She doesn’t know if she should set up a company or sole trader.
Discuss with Sarah the considerations of each option. (Tax)
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- Four friends plan to form a corporation for purposes of constructing a shopping center. Charlie will be contributing the land for the project and wants more security than shareholder status provides. He is contemplating two possibilities: receive corporate bonds for his lnd or take out a mortgage on the land before transferring it to the corporation. Comment on the choices Charlie is considering and make an argument for the one you would recommend.Lucia is paying Martha to sell properties that Lucia owns. Can Martha sell one of Lucia's properties to herself? No, because an agent may not self-deal O Yes, if she sells it for fair market value Yes, if Lucia did not prohibit this type of transaction No, because that would make Martha a subagent of LuciaQuestion 31 of 50. Review the following scenario, then choose the appropriate response describing steps a paid tax preparer must take to demonstrate due diligence. Charlie (21) comes in to your office to have his tax return prepared. He states that he is a full-tim college student with income from a part-time job, and his parents will not claim him as a dependent. He wants to claim the American Opportunity Tax Credit (AOTC). Which of the following describes an appropriate question to ask or action to take ooo Ask him if he has ever been convicted of a misdemeanor offense or had his driver's license revoked. Inform him that he may be assessed a penalty of $545 if he fails to provide all the information required. Inform him he must provide copies of all transcripts before you can prepare his retum. Request a copy of his Form 1098-T, Tuition Statement, and inquire into when and how his education and other were paid. Mark for follow up Question 32 of 50. Tee of these pro ambing systems.…
- Suppose you are 28 and married. You and your spouse file for income taxes jointly. You are in the 25% tax bracket. You are considering a few personal investment issues. n finance, human capital of an investor is defined as the present value of all the future earnings of this person. For young investors, human capital usually constitutes a large percentage of their total wealth. Human capital is subject to mortality risk—the likelihood that the investor dies prematurely and therefore loses all the labor income of subsequent working years. The loss of an investor's human capital is borne by his/her family. The life insurance policy provides protection against mortality risk. Which of the following is likely to be the best life insurance choice for you and your spouse? a. Buy a small life policy in the beginning and gradually increase the death benefit as you and your spouse age. b.Buy a large life policy in the beginning and gradually reduce the death benefit as you and your spouse age.…Jane, a partner in a CPA firm, borrows money from one of her firm's audit clients. She is a covered member with respect to this client. For which type of loan may Jane borrow from the client and not impair her independence? A.) She uses the money to help her parents B.) She purchases a home that will be her primary residence C.) She uses the money to obtain a master's degree D.) She purchases an automobile, which is collateral for the loanWould you sign this return if you were Tom and Teri’s Paid Tax Preparer? Why or why not? Your clients, Tom (age 48) and Teri (age 45) Trendy, have a son, Tim (age 27). Tim lives in Hawaii, where he studies the effects of various sunscreens on his ability to surf. Last year, Tim was out of money and wanted to move back home and live with Tom and Teri. To prevent this, Tom lent Tim $20,000 with the understanding that he would stay in Hawaii and not come home. Tom had Tim sign a formal note, including a stated interest rate and due date. Tom has a substantial portfolio of stocks and bonds and has generated a significant amount of capital gains in the current year. He concluded that Tim is a deadbeat and the $20,000 note is worthless. Consequently, Tom wants to his son’s bad debt on his and Teri’s current tax return and net it against his other capital gains and losses. Tom is adamant about this!
- Select the best answer. During the year Jake, age 20, took out a student loan and used the proceeds entirely for his college tuition. Jake is the only signer on the loan and is solely responsible for repayment of the loan. Which of the following statements is true regarding the support test in this situation? O A. The tuition is considered to be provided by the institution that provided the loan. OB. The tuition is considered to be provided by Jake. O C. The tuition is considered to be provided by Jake's parents. O D. Tuition is not support. m, Question Q1 Submit Answers 92% Complete Exit & Resume La block.csod.com/lms/scorm/clientLMS/Scorm 12lframeContainer.aspx?aicc_sid-AICCXvd FC TiXtc1JfwhoH-hadA&aicc_url=https://hrblock.csod.com/LMS/scorm/aicc.aspxPhoebe, who files single, holds several crypto wallets with large account balances. Her adjusted gross income (AGI) is expected to be around $475,000. If she decides to sell off some holdings, which of the following techniques can she use to lessen her tax impact? Since the market always rises, she can sell first-in, first-out and will always be selling the lowest basis coins first. If she reinvests her proceeds in a Qualified Opportunity Fund within 180 days, she may defer paying any tax on her gains. This will enable her to spread the tax impact over several years. By selling her short-term holdings, she will avoid capital gains, and she can pay ordinary income rates on the gains. Each wallet is treated as a separate business entity. She can sell a little from each and it won't impact her taxes at all.Mr. Chan set up a company called Good Home Limited. The company holds several properties in Hong Kong and lease out to earn rental income. Mr. Chan wonders whether the company should pay property tax or profits tax. He also concerns if double taxation of the same income derived from a property under property tax and profits tax will charge to GoodHome Limited and how it can avoid this if so. Question: Advise Mr. Chan.
- Jessica is a professional consultant. She agrees to consulting services for Joe for $2,000. After she finishes, Joe does not have cash to pay Jessica, but he has an antique, collectible baseball card with a fair market value of $2,000 that he gives her to satisfy the payment. The baseball card cost Joe $500. How much should Jessica include in her gross income?Anthony and Amy expect to settle down and purchase a home now that Anthony has a stable job with a solid long- term growth company. They are meeting with their loan officer to determine which mortgage would best suit their needs. Amy is a stay-at-home mom raising their two school-age children. She sometimes provides child care services for her immediate family members. Neither Anthony nor Amy have served in the military, Anthony and Amy want to secure a mortgage that offers the lowest monthly payment with a fixed interest rate. Based on this information, which mortgage would be the most appropriate choice?\\n\\nA)\\nAdjustable-rate mortgage\\nB)\\n30-year conventional mortgage\\nC)\\n15-year conventional mortgage\\nD)\\nVA mortgageChris, a good buddy or yours, is learning about personal automobile policies. He just received his policy from the insurance company. There is an item listed that he wants to take off because he doesn't think he needs it. This coverage will provide additional coverage that will pay his medical and property damage expenses above what someone else's policy pays. What policy is he referring to and does he need it? Question 6 options: Uninsured Motorist Coverage / No Uninsured Motorist Coverage / Yes Comprehensive Insurance / No Comprehensive Insurance / Yes Give typing answer with explanation and conclusion
