Chapter 1, Problem 12DQ

Read the following selection and answer the questions that follow. Mr. Thomas Jones is originally from Australia but owns a computer hardware store here in the Philippines where he resides. He occasionally goes back to his country as he also owns a business there. He does not have Filipino citizenship as he has no Filipino wife nor did he apply to be one. a. Is Mr. Jones a taxpayer in the Philippines? What is his category?b. If Mr. Jones is indeed a taxpayer in the Philippines, is his business income in Australia also taxable here in the Philippines?

Andrew is a successful barrister working in London; he owns his own house.  His parents are both working and have significant savings.  His sister Virginia and her partner have recently had a baby.  She and her partner have a large mortgage and a lot of debt; they are struggling now that she has stopped working. Discuss the different reasons why it is important that Andrew and his sister Virginia should make a will.  Explain what would happen to Andrew and Virginia’s estate if they do not make wills.

Can the Taxpayer claim the following dependent(s)? Why or why not?   (Situation 1) Fiona’s niece is sixteen and has come to the U.S. from Ireland because her parents were in violent trouble. She moved in with Fiona in March and lived there throughout the year. Fiona paid for all of her expenses. Can Fiona claim her as a dependent? What if the niece’s friend stayed with Fiona too?   (Situation 2) Same as above, but Fiona received checks intermittently from her sister. Those checks totaled 17K through the year. What should Fiona do to make sure she can claim Niece as a dependent?

Ned is an independent contractor working with Joe remodeling a home, and Joe pays him using cryptocurrency. Ned then took the cryptocurrency and purchased tools for work. How should he report the income and what would be the basis of the amount he received?

If Kevin works off the clock, then he will sacrifice family time and responsibilities. This is an example of what type of ethical reasoning?

In the late 1980s, Carsten Richter, from Germany, migrated to the United States, where he is now a citizen. A man of many talents and deep foresight, he has built a large fleet of oceangoing oil tankers during his stay in the United States. Now a wealthy man in his 60s, he resides in Aspen, Colorado, with his second wife, Gabriela, age 50. They have two sons, one in junior high and one a high-school freshman. For some time, Carsten has considered preparing a will to ensure that his estate will be property distributed when he dies. A survey of his estate reveals the following: Ranch in Colorado $1,000,000 Condominium in Santa Barbara 800,000 House in Aspen 1,500,000 Franchise in ice cream stores 2,000,000 Stock in Google 5,000,000 Stock in Wal-Mart 1,000,000 Stock in Silver Mines International 3,000,000 Other assets 200,000 Total Assets $14,500,000 Does Carsten really need a will? Explain why or why not? What would happen to his estate if he were to die without a will?

Mr Choi was born and raised in Hong Kong. In recent years, due to family-related reasons, he spends most of his time in Shenzhen. Though Mr Choi has a Hong Kong Identity Card, he seldom visits Hong Kong as most of his friends and relatives are in mainland China. In July 2019, Mr Choi purchased a residential property in Tai Po for $30,000,000 for investment purpose. After a quick renovation, the property was let to Mr Chan for two years, starting from 1 September 2019. The relevant terms of tenancy agreement are extracted below: monthly rent: $30,000, payable at the beginning of each month; rent-free period of a half-month from 1 September 2019; initial premium of $48,000, payable on signing the lease agreement; rates of $6,000 per quarter, payable by Mr Choi to the government; management fees: $2,000 per month, payable by the landlord; and rental deposit: $60,000 payable on signing the lease agreement. In October 2019, the property underwent certain repairs that cost $5,000; these…

Jamie has an undergraduate degree in finance and is employed full-time by a bank. She is taking courses at a local university leading to an MBA degree. Is the full cost of this education deductible to her? If so, what limitations are imposed on the deduction?

A Personal Liability Umbrella isn't required for most people, but certainly can be valuable. At what point would it be necessary to purchase a Personal Liability Umbrella policy? After purchasing your first car or house or boat or is it ever needed? Share some points of view.