Chapter 1, Problem 19P

Kim and Kayne have been dating for years and are now thinking about getting married. As a financially sophisticated​ couple, they want to think through the tax implications of their potential union. a. Suppose Kim and Kanye both earn ​$65,000 ​(so their combined income is ​$130,000​). Using the tax bracket information Data table ​(Click the icon here    in order to copy the contents of the data table below into a​ spreadsheet.)     TABLE​ 1.2: Federal Income Tax Rates and Brackets for Individual Returns​ (2018)         Tax Rates   Taxable Income Taxes ​10.0%   ​$0 to​ $9,875 ​10% of taxable income ​12.0%   ​$9,876 to​ $40,125 ​$987.50, plus​ 12% of the amount over​ $9,876 ​22.0%   ​$40,126 to​ $85,525 ​$4,617.50, plus​ 22% of the amount over​ $40,126 ​24.0%   ​$85,526 to​ $163,300 ​$14,605.50, plus​ 24% of the amount over​ $85,526 ​32.0%   ​$163,301 to​ $207,350 ​$33,271.50, plus​ 32% of the amount over​…

Question 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.…

Which of the following would be a good question to ask before advising a client to move from a Schedule C to S corporation tax treatment? Review Later How does moving to S corp tax treatment impact the ability to pump tons of money into a tax-deferred retirement plan?   What really are the net savings, after accounting for all the extra fees attached to operating an S corporation? Is this client likely to actually do the compliance stuff associated with operating an S corporation, or is the "extra red tape" possibly (read: probably) going to become a nightmare for the client?.