Which of the following taxes are regressive, rather than progressive? A. Federal estate tax B. None of these OC. State general sales tax OD. Federal individual income tax E. Federal gift tax
Which of the following taxes are regressive, rather than progressive? A. Federal estate tax B. None of these OC. State general sales tax OD. Federal individual income tax E. Federal gift tax
Chapter17: Corporations: Introduction And Operating Rules
Section: Chapter Questions
Problem 6DQ
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Transcribed Image Text:For business deductions, which of the following is true (mark all that apply):
A. An expense is not deductible under Federal law unless Congress creates a specific provision allowing it.
B. None of these are true.
OC. An expense has been held to be ordinary if it is normal, usual, or customary in the type of business conducted by the taxpayer, and an expense need not be recurring to be considered ordinary.
D. An expense has been held to be necessary if a prudent businessperson would incur the same expense and the expense is expected to be appropriate and helpful in the taxpayer's business.
OE. The courts have held that for any expense to be ordinary and necessary, it must also be reasonable in amount. If an expense is unreasonable, it is not deductible.
Transcribed Image Text:Question 6
Which of the following taxes are regressive, rather than progressive?
A. Federal estate tax
B. None of these
OC. State general sales tax
D. Federal individual income tax
E. Federal gift tax
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