Answered: the taxpayer withheld 5% creditable…

the taxpayer withheld 5% creditable withholding tax on rental payments to various VAT-registered lessorrs. the total taxes withheld were 5,600. what is the deductible amount of rental expense?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter6: Business Expenses

Section: Chapter Questions

Problem 51P

See similar textbooks

Related questions

Q: Use the following information and the flow chart from the module to calculate: Adjusted gross income…

A: Ajusted gross income helps to assess the liability of income tax. It is estimated by subtracting…

Q: A certain taxpayer paid the following bill from a VAT-registered supplier of office supplies. The…

A: A VAT registered tax payer shall be eligible to claim Input Tax Credit paid on purchases which is…

Q: what would the average tax rate for a person who paid taxes of $6,435 on taxable income of $40,780?

A: Tax Paid = $6,435Taxable Income = $40,780 Calculation of Average Tax Rate:

Q: The taxpayer withheld 5% creditable withholding tax on rental payments to various VAT-registered…

A: Tax is the liability for the company calculated on the income earned and paid to the government.

Q: With the following data, compute the NET FUTA Tax. Gross FUTA Tax DUE $ 6,750 Credit against…

A: FUTA stands for Federal Unemployment Tax Act. This tax is imposed on employers whose employees leave…

Q: A customer purchases $28.14 in products only $12.83 is taxable. How much sales tax is owed if the…

A: Sales tax is a tax levied on the sale and purchase of goods and services. It is typically a…

Q: John's Market is assessed for $99,314. The current tax rate is 85.96 per $1426 of assessed value.…

A: Assessment is the process of estimating the income of the taxpayer for the purpose of calculating…

Q: A. Compute for the Net Taxable Income and Personal Income Tax. 1. A. Annual Basic Salary B. 13th…

A: NOTE : As per BARTLEBY guidelines, when multiple questions are given then first question is to be…

Q: A person who owes total federal income taxes of $4,420 but had total withholdings of $3,980 would:…

A: Total Federal Taxes = $4420 Total withholdings = $3980

Q: In the third quarter of 2019, a taxpayer engaged in the sale of services whose annual gross receipts…

A: Here discuss about the percentage of taxes and Value added taxes and its restriction in the total…

Q: Consider gross earnings of $84,000. The standard deduction is $12,000 and itemized deduction is…

A: Taxable income is the income on which the tax rate is imposed. It is the income net off of the…

Q: 3. When a taxpayer's income increases by $2,500 and the taxes owed increase from $13,899 to $14,399,…

A: Income tax refers to compulsory payment made to government with persons having higher income…

Q: With the following data, compute the NET FUTA Tax. Gross FUTA Tax DUE $6,750 Credit against FUTA…

A: Formula: Net FUTA tax = Gross FUTA tax due - Credit against FUTA

Q: schedular tax on taxable income.

A: Correct Answer :- C The schedular tax on taxable income.

Q: The W-2 form is a form that tells you

A: The W-2 form is the form sent by employer to an employee and the Internal Revenue Service (IRS) at…

Q: Atimonan Company received a bill for P27,440 from a VAT service provider. The payment for the…

A: Withholding tax, often referred to as retention tax, is a tax that is deducted or withheld by the…

Q: You just completed your taxes and had $3,79 withheld for income taxes and a final tax liability of…

A: A tax refund seems to be the difference between the total amount of tax paid and the total amount of…

Q: What would be the average tax rate for a person who paid taxes of $6,435 on a taxable income of…

A: Calculation of Average Tax Rate:

Q: A customer purchases $28.14 in prodcts only $12.83 is taxable. How much sales tax is owed if the tax…

A: Taxable Amount = $12.83Tax Rate = 10%

Q: eason. You find that you paid $3,296.44 in Federal Taxes. Using your taxable income and the tax…

A: Answer You receive a tax refund of $280.44 because you paid more taxes last year than you should…

Q: With the following data, compute the NET FUTA Tax. Gross FUTA Tax DUE $ 6,750 Credit against…

A: FUTA Tax :— It is payroll tax imposed on wages of employees in United States to help fund the…

Q: Hw.39. Insurance payment includes an advance payment of $12,925 for the next year. Is it tax…

A: Tax Deduction :- It is the reduction from profit of the entity which reduces the taxable income.…

Q: 1. A person had $3545 withheld for federal income taxes and had a tax liability of $3400. Would this…

A: Formula to calculate refund amount: Refund amount = Tax already paid or deposited or witheld…

Q: Consider the following accounts and determine if the account is a current liability, a noncurrent…

A: Current liability are those liabilities which are to be paid in short period of time like say one…

Q: What was the total amount deducted from Lily’s pay for Federal, State, and Local income tax?…

A: Total taxes to be paid depends on wages and there are different types of taxes to be paid local…

Q: A VAT taxpayer received P45,900 inclusive of VAT and net of 10% creditable withholding tax. Compute…

A: Step 1 Gross income is an income which is subject to before tax deduction.

Q: Consider gross earnings of $86,000. The standard deduction is $12,000 and itemized deduction is…

A: Taxable income is the income on which the tax rate is imposed. It is the income net off of the…

Concept explainers

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.

Question

the taxpayer withheld 5% creditable withholding tax on rental payments to various VAT-registered lessorrs. the total taxes withheld were 5,600. what is the deductible amount of rental expense?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The taxpayer withheld 5% creditable withholding tax on rental payments to various VAT-registered lessors. The total taxes withheld were 5,600. What is the deductible amount of rental expense? 56,000 O 100,000 O 112,000
A VAT taxpayer received P45,900 inclusive of VAT and net of 10% creditable withholding tax. Compute the gross income subject to regular tax
With the following data, compute the NET FUTA Tax. Gross FUTA Tax DUE $ 6,750 Credit against FUTA (assume applicable) $3,100
A. Compute for the Net Taxable Income and Personal Income Tax. 1. A. Annual Basic Salary B. 13th Month Pay and Other Benefits C. Mandatory Contributions D. Annual Gross Income (A+B) E. Deductions and Exemptions (B+C) P 397,860.00 33,155.00 6,542.00 Net Taxable income (D-E) Personal Income Tax B. Compute for the 4 general deductions of the following employees: 1. A sales manager in Kopimo, Inc., a private company, earning P42,000 monthly with sales commission of P36,000 for the year. 2. A public school teacher earning P24,495 monthly with chalk allowance of P1,500, uniform allowance of P6,000 and performance bonus of P12,000. 3. An IT manager in Accentuate Corp., a private company, earning P55,000 monthly and laundry allowance of P15,000 for the whole year. C. Basic Applications. Solve for the following: 1. Conchita works as a service crew member in a fast-food chain in a mall. She has an hourly wage rate of P50. Her rest days are every Wednesday and Saturday. Consider the following…
1. In the third quarter of 2019, a taxpayer engaged in the sale of services whose annual gross receipts do not exceed P3M has the following data: Accounts receivable, beginning of quarter P 50,000; Sales during the quarter 100,000; Accounts receivable, end of quarter 75,000; Purchase of supplies, total invoice amount 11,200. The percentage tax due for the quarter is 2. In the third quarter of 2019, a taxpayer engaged in the sale of services whose annual gross receipts do not exceed P3M has the following data: Accounts receivable, beginning of quarter P 50,000; Sales during the quarter 100,000; Accounts receivable, end of quarter 75,000; Purchase of supplies, total invoice amount 11,200. Assuming the taxpayer is VAT-registered, the VAT payable is:
Consider gross earnings of $84,000. The standard deduction is $12,000 and itemized deduction is $5,000. Social security tax rate is 6.2%; Medicare tax rate is 1.45%. How much is the taxable income (for federal income tax)?
what would the average tax rate for a person who paid taxes of $6,435 on taxable income of $40,780?
A customer purchases $28.14 in prodcts only $12.83 is taxable. How much sales tax is owed if the tax rate is 10%?
1. A person had $3545 withheld for federal income taxes and had a tax liability of $3400. Would this be a refund or an additional amount due? For what amount?
Use the following information and the flow chart from the module to calculate: Adjusted gross income ( AGI) Taxable income Show your work for each calculation to receive full credit. An individual has the following information for the current tax year. Assume they do not itemize and they file as head of household. Income from wages, $80,000 Interest earned on savings, $150 IRA contribution, $5,000 Checking account interest earned, $75 Standard deduction for Head of Household: $20,800 Child and Dependent Care Tax credit, $3,000 Filing status: Head of Household
Consider gross earnings of $86,000. The standard deduction is $12,000 and itemized deduction is $8,000. Social security tax rate is 6.2%; Medicare tax rate is 1.45%. How much is the taxable income (for federal income tax)? Give typing answer with explanation and conclusion
You are filling out your 1040 form for tax season. You find that you paid $3,296.44 in Federal Taxes. Using your taxable income and the tax table, you find you should have paid $3,016 in Federal Taxes. Do you get a refund or do you owe the government money? Why?