PRINCIPLES OF TAXATION F/BUS.+INVEST.
22nd Edition
ISBN: 9781259917097
Author: Jones
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Question
Chapter 5, Problem 14RP
a.
To determine
Provide citations for the three of the secondary authorities.
b.
To determine
Provide three primary citations for the secondary authorities that are given in the requirement a.
c.
To determine
Explain whether the IRC section provided in the requirement (b) contains the term “hobby loss” and also indicate the phrase that is used by the IRC to refer hobby.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
The EFILE allows an individual to file their own personal income tax return directly to the CRA online through the use of a CRA certified tax software prockram.
a. TRUE
b. FALSE
Performance standards:
Accomplish the BIR (Bureau of Internal Revenue) forms
MELCS: Explain the procedure in the computation of gross taxable income and tax due.
Mr. Sabado need to pay his tax. You are an agent hired by Mr. Sabado to compute his taxable income and
tax due. The BIR agent will check and evaluate based on accuracy of the information prepared.
Instructions:
From the given information below compute the total taxable income and total income tax due on each
scenario.
Mr. Sabado, Production Manager of M.A.R Corp., earned annual compensation in 2020 of P
2,333,000, exclusive the 13h month and other benefits in the amount of P250,000 but net of
mandatory contributions to SSS and Philhealth. Aside from employment income, he owns a
convenience store, with gross sales of P3,555,000. His cost of sales and operating expenses are
P1,500,000 and 800,000, respectively, and with non-operating income of P250,000.
а.
Mr. Sabado signified his intention to be taxed at 8% income tax rate on…
2. What must the certified volunteer preparer do with Form 13614-C before starting the tax return?
a. Make sure all questions on Form 13614-C are answered.
b. Change "Unsure" answers to "Yes" or "No" based on a conversation with the taxpayer.
c. Determine the certification level required to complete the return.
d. All the above.
Chapter 5 Solutions
PRINCIPLES OF TAXATION F/BUS.+INVEST.
Ch. 5 - Why is tax research necessary? In other words, why...Ch. 5 - Prob. 2QPDCh. 5 - Explain the difference between a tax issue and a...Ch. 5 - Explain the difference between primary and...Ch. 5 - Discuss why and how a researcher might use...Ch. 5 - Prob. 6QPDCh. 5 - Prob. 7QPDCh. 5 - Prob. 8QPDCh. 5 - Explain why, in the course of tax research, it may...Ch. 5 - Prob. 10QPD
Ch. 5 - Prob. 1APCh. 5 - Prob. 2APCh. 5 - Prob. 3APCh. 5 - Prob. 4APCh. 5 - Indicate whether each of the following statements...Ch. 5 - Prob. 6APCh. 5 - Indicate whether each of the following items is...Ch. 5 - Prob. 8APCh. 5 - Prob. 9APCh. 5 - Prob. 10APCh. 5 - Which of the following statements regarding the...Ch. 5 - Which of the following statements regarding...Ch. 5 - Prob. 13APCh. 5 - In researching the taxability of noncash...Ch. 5 - Prob. 2IRPCh. 5 - Marvin is researching the tax rules related to...Ch. 5 - Prob. 4IRPCh. 5 - John is a dentist. His neighbor Wade is a...Ch. 5 - Prob. 6IRPCh. 5 - Prob. 7IRPCh. 5 - Natalie appeared on a game show last year and won...Ch. 5 - Prob. 1RPCh. 5 - Prob. 2RPCh. 5 - Prob. 3RPCh. 5 - Prob. 4RPCh. 5 - Find and provide a citation for the IRC section...Ch. 5 - Prob. 6RPCh. 5 - Find Rev. Rul. 72-542, 1972-2 C.B. 37, and answer...Ch. 5 - Find a 2006 10th Circuit Court of Appeals decision...Ch. 5 - Prob. 9RPCh. 5 - Prob. 10RPCh. 5 - Prob. 11RPCh. 5 - Prob. 12RPCh. 5 - Prob. 13RPCh. 5 - Prob. 14RPCh. 5 - In researching a tax issue, you locate the case...Ch. 5 - Prob. 16RPCh. 5 - Find Revenue Ruling 83-163, 1983-2 C.B. 26, and...Ch. 5 - Prob. 18RPCh. 5 - Prob. 19RPCh. 5 - Find the IRS website and locate the following...Ch. 5 - Prob. 1TPCCh. 5 - Prob. 2TPCCh. 5 - Prob. 3TPC
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
- Which of the following are not deductible by a CPA who prepares tax returns? a. Subscription to the Kiplinger Tax letter b. Subscription to CCH service online c.Dues to the country club to entertain clients d. Dues to the California Society of CPAsarrow_forwardExplain who needs to pay estimated taxes, when to file or amend your return, and how to handle an audit.arrow_forwardWhich of the following is NOT an option to file a federal tax return? Fill out the paper version of the IRS tax form and mail it in. File taxes online using tax program. Hire a human tax preparer to complete the return and assist with filing. Fill out a paper version of the IRS tax form and fax it in. Next Mark For Reviewarrow_forward
- The accountant has asked your team to explain to the intern of the other team the treatment for interest capitalization when accounting for self-constructed assets. In preparing your presentation notes, be sure to address the following. Paragraph citations are to be provided with answers where applicable. What is the objective of capitalising interest? What is meant by a qualifying asset? Identify the assets which may qualify for interest capitalization. If interest capitalization is allowed, what disclosures are required? Compute the amount of interest to be capitalised. Provide detailed workings. Round to 2 decimal places. What was the capitalised cost of the new office building on the statement of financial position.arrow_forward1. According to the article by Tony Dimitriadis (see Supplementary Study Materials Folder), whether an amount received by a taxpayer following the sale of a capital asset (e.g. real estate) will be treated as capital or income depends largely on: Select one: The intention of the taxpayer when the property was first acquired The degree of renovation and development carried out on the property Whether the taxpayer held on to the property, rather than making a short term profit Whether the taxpayer is an individual or a business taxpayer All of the above are important considerations 2. Select the INCORRECT statement from the following options: Select one: The Cost Base of Personal Use Assets excludes Element 3 expenses (Ownership Costs) An antique vase bought at a garage sale for $200 and sold for $20,000 is exempt from CGT The indexation rate for assets acquired on 2 February 1986 was 41.4 All costs incurred under Element 3 (Ownership Costs) should be included in the indexation…arrow_forwardA taxpayer must report the full amount of gambling winnings on Schedule 1, line 8. How are gambling losses reported? Select one: a. On Schedule 1, line 22 Ob. On Schedule A, line 16, limited to gambling winnings included on Schedule 1 OC. Subtracted from gambling winnings before reporting on Schedule 1, line 8 Od. On Form 1040, line Ba as an adjustment to incomearrow_forward
- Briefly explain how tax loss carryback and carryforward procedureswork.arrow_forwardAs a taxpayer referring to the information provided by your classmates related to the informational needs of the user group you have chosen, state whether the objectives of financial reporting they have listed meet your needs, whether any additional information is needed by your user group, and why this information would be beneficial to the financial decisions you would need to make. Are there any additional objectives that should be listed for your user group, if so what are they? How do your needs differ from the other user groups? how would I respond to the following: In reviewing the FASB concepts, I will address them from the school department point of view, which operates under the city government. Concept no.1 requires that financial statements help users to assess whether to donate to an organization, and to understand how (if they choose to donate) their resources will be used. For a school department it is imperative that the public know what their tax dollars are used for,…arrow_forwardPls explain tooarrow_forward
- As a tax consultant you receive on continuous basis inquiries and tax forms from your clients. Following are independent inquires that you have to check and reply back to your clients. For each enquiry below and listed 1 to 4, comment on whether the given calculations are correct or not, explain your answer and give the correct calculations by showing your workings if you disagree. 1. Jurisdiction A imposes income tax on businesses. The income tax is equal to 1% of income up to $ 200,000 and 1.5% of income in excess of $200,000. Nasha Company reported $1,564,000 net income for the year ended December 2020. Nasha's accountant reported an income tax of $23,460. 2. Taxpayer D has taxable income of $172,450. He operates in a Jurisdiction where the tax equals 10% of the first $34,000, 15% from $34,001 to $138,000 and 25% in excess of $138,000. Taxpayer D believes that his average tax rate equals his marginal tax rate of 25%. 3. Taxpayer E lives in a jurisdiction which impose 15% individual…arrow_forwardThe first step that must be completed to determine the allowable losses when a taxpayer has multiple passive activities is tto figure the what?arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
Understanding U.S. Taxes; Author: Bechtel International Center/Stanford University;https://www.youtube.com/watch?v=QFrw0y08Oto;License: Standard Youtube License