As a result of several anti-avoidance provisions of the Income Tax Act, property income shifted to a spouse or child in a lower tax bracket will typically
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As a result of several anti-avoidance provisions of the Income Tax Act, property income shifted to a spouse or child in a lower tax bracket will typically a. be permitted to utilize the lower tax rate. b. be disallowed unless the child is under the age of 18. c. be attributed back to the transferor of the property or subject to the top personal tax rate. d. be attributed back to the transferor of the property or subject to the lowest personal tax rate.
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- In choosing between taking the standard deduction and itemizing deductions from AGI, what effect, if any, does each of the following have? a. The age of the taxpayer(s). b. The health (i.e., physical condition) of the taxpayer. c. Whether taxpayers rent or own their residence. d. Taxpayers filing status (e.g., single, married, filing jointly). e. Whether married taxpayers decide to file separate returns. f. The taxpayers uninsured personal residence was recently destroyed by a wildfire (the region was declared a disaster area by the Federal government). g. The number of dependents the taxpayer can claim.For purposes of determining income eligibility for the premium tax credit, household AGI is AGI for the taxpayer and spouse AGI for the taxpayer, spouse, and any other household members required to file a tax return AGI for the taxpayer, spouse, and any other household members required to file a tax return plus any tax-exempt income AGI for the taxpayer, spouse, and any other household members required to file a tax return plus any tax-exempt income and untaxed Social Security benefitsWhat is the purpose of the provision in the tax law that taxes unearned income of certain minor children at the trust and estate tax rates? The provision is designed to prevent from transferring generally to in order to take advantage of the tax rate.
- If an individual purchases property insurance on business equipment, the premiums are deductible, but if that same individual purchases property insurance on his home, the premiums are nondeductible. explain this inconsistent tax treatmentIn terms of the tax formula applicable to individual taxpayers, which, if any, of the following statements, is correct? In arriving at AGI, a taxpayer must elect between claiming deductions for AGI and deductions from AGI. In arriving at taxable income, a taxpayer must elect between claiming deductions for AGI and deductions from AGI. If a taxpayer has deductions for AGI, the standard deduction is not available. In arriving at taxable income, a taxpayer must elect between deductions for AGI and the standard deduction. None of these.It is a tax levied on an heir's inherited portion of an estate if the estate's value surpasses an exclusion limit set by law. a. Estate Tax b. Personal Income Tax c. Consumption Tax d. Property Tax
- What is the consequence of the purchases of a OPT-taxpayer from a VAT taxpayer? Options: i. The transaction shall be subject to VAT, the amount of which forming part to the cost of the purchase. ii. The transaction shall be subject to VAT, the amount of which can be used as an input tax credit. iii. The transaction shall be subject to zero-rated VAT since the buyer is not subject to VAT. iv. The transaction shall not be subject to value-added tax since he is not VAT registered.Lump sum payments in respect of the termination of employment of a person may be relieved from tax. What are the conditions that must be met for these payments to be made without the deduction of tax.Using the following codes, identify the basic approach(es) to tax avoidance that are used in each of the following cases: AR - Avoiding recognition of taxable income CT - Changing the timing of recognition of income, gains, deductions, losses, and credits CJ - Changing tax jurisdictions CC - Changing the character of income RP - Tax planning among related tax payers a. Albert invests his savings in tax-exempt state bonds. b. Betty invests in non-dividend-paying corporate stocks by using borrowed funds. c. Chuck lends $100,000 to his daughter on an interest-free demand note. d. Ed invests $100,00 of his savings in a home for his own use. e. Frankie invests in a mutual fund that purchases only the indebtedness of the state in which he lives.
