SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN: 9780357391266
Author: Nellen
Publisher: Cengage
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Allowable Business Investment Losses (ABIL) can be deductible from any source of income to the taxpayer in a given tax year. Name any two sources of income that ABIL can be deducted from: _____________ and _____________.
Which of the following should not be claimed as deductions from gross income?
A. Interest payment on loans for the purchase of machinery and equipment used in business.
B. Salaries and bonuses paid to employees.
C. Discounts given to senior citizens on certain goods and services
D. Advertising expense to maintain some form of goodwill for the taxpayer’s business.
Which of the following is NOT income tax exempt?*
A. BOI-registered enterprise enjoying tax holiday
B. Forex transaction income of a Foreign Currency Depositary Unit from another Foreign Currency Depositary Unit
C. Forex income in the Philippines of an Offshore Banking Unit
D. Regional area headquarter of a multinational company
E. None of the Above
A resident corporation is one that is:
A. Organized under the laws of a foreign country that engages in business in Makati City,Philippines.
B. Organized under the laws of the Philippines that…
Which statement is NOT true about the structure of the Earned Income Tax Credit (EITC)?
A. EITC payments decrease as earnings increase, but everyone qualifies for some amount.
B. At a particular range of income, government reduces EITC payments based on a certain fixed percent of income earned.
C. EITC pays a fixed amount at a range of income.
D. Up to a threshold, EITC pays a certain fixed percent of wage earned.
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- What makes the refund of state taxes taxable on the federal tax return? a. moving to Texas before your refund gets sent to you b. paying state taxes the year before and getting a refund c. claiming taxes as an itemized deduction and using standard deduction d. claiming taxes as an itemized deduction and itemizingarrow_forwardWhich of the following statements is correct? O a. A tax offset can result in a refund if it relates to franking credits. O b. Tax offsets are same as allowable deductions as both reduce assessable income. O c. Any tax offset can increase deductions. O d. Tax offsets are used to reduce your taxable income.arrow_forwardThe minimum tax credit: Provides that the amount of AMT paid by an individual in one year can be used to offset the regular tax liability of a subsequent year May not be used to offset any future AMT tax liability May be carried forward indefinitely as an offset against regular tax liability All of the abovearrow_forward
- Which of the following statements about credits is false? A. Credits reduce a taxpayer's liability dollar for dollar. B. Not all credits are refundable. C. The CARES Act stimulus payments were advance credits for 2020. D.Nonrefundable credits are limited to the tax balance due.arrow_forwardWhich of the following is an adjustment that will generally result in lower tax liability for an eligible taxpayer because it directly reduces the taxpayer's total income? An education credit. The health savings account deduction. Medical and dental expenses deduction. The retirement savings contributions credit (Saver's Credit)arrow_forwardUnder a self-assessment system, taxpayers are required to: i. file estimated income tax returns. ii. make quarterly estimated payments. iii. file final annual income tax return; and pay the difference between the estimated income tax return and the final tax return, if any. iv. Wait until the Commissioner sends an assessment to pay their taxes.arrow_forward
- Ma1.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_forwardPlease answer fast I will rate for you sure....arrow_forward
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