Complete Package Deal For TAX 4001 EXAM UPDATED QUESTIONS AND ANSWERS 2024 GRADED A

Layzer asserts that it is generally easier to maintain the status quo than to create substantial change in policy. Why has this pattern been especially true for the issue of oil extraction in the Arctic National Wildlife Refuge (ANWR)? - Numerous Congressional committees have jurisdiction over energ...

Individual Income Tax Formula - Gross income (-) Deductions for AGI = AGI (-) 1) Deductions from AGI (greater of itemized or standard deduction) and 2) The deduction for QBI = Taxable Income x Tax rate = Gross tax liability (-) Tax credits and prepayments = Tax due or refund Gross Inc...

Corporate Income Tax Formula - Quite simple; gross income less expenses equals taxable income Individual Income Tax Formula - Quite complex; adjusted gross income and above the line and below the line deductions Permanent Book-Tax Differences - Arise in one year and never reverse Interest i...

What do taxpayers use to calculate tax depreciation? - modified accelerated cost recovery system (MACRS) 4 things that must be knows to compute MACRS - asset's original costs asset's recovery period applicable depreciation method applicable depreciation convention depreciation recov...

activity based tax - tax imposed on the results of an ongoing activity in which persons or organizations engage ad valorem tax - a tax based on the value of property excise tax - a tax levied on the retail sale of specific goods or services; may be in addition to or instead of a general sales ...

ad valorem taxes - real property taxes and personal property taxes; significant source of revenue for local governments tax planning - the structuring of transactions to reduce tax costs or increase tax savings to maximize NPV variables of tax planning - entity, time period, jurisdiction, char...

10.2 (conceptual) understand how MACRS work for automobiles - 5 year recovery period, if used, doesnt change recovery period 10.3 (conceptual) list of different types of assets; which would be eligible for bonus depreciation - must be used/new (as long as not been previously used within past 5 ye...

Deemed substantiation - Employers give employees per diem to spend- so employees do not need proof of their expenses. MUST USE THE LESSOR OF: the per diem rate by company or federal per diem rate What is an accountable plan? What are the two requirements of employees? - Expenses incurred by emplo...

What is the most difficult part about calculating taxes? - determining the tax BASE, not the tax rate. Average tax rate - total tax / taxable income Effective Tax Rate - total tax/total income marginal tax rate - change in tax/change in taxable income or... (New total tax-Old total tax)/(...

Debbie is a limited partner in ADK Partnership. Her partnership Schedule K-1 reports $19,000 ordinary business income, $2,000 long-term capital gain, and $830 dividend income. Which of these items are subject to self-employment tax? None of the items are subject to SE tax because Debbie is a limi...

Tax Shelter - Wealthy taxpayers in high income tax bracket invest in opportunities where they can collect a loss and bring down their taxable income - focused around non recourse financing - obligation where borrower isn't personally liable - Previous investment strategy before laws put in place ...

True or false? An individual who is married on December 31st can elect to file a joint return. - True. Two individuals got married on January 1st and divorced on December 30th. What is their filing status? - Single. A married couple has 1 dependent child. The husband passed away this year. Wha...

A property tax is assessed based on the value of the property at a point in time. How does this compare to how income taxes are assessed? - Income taxes are assessed based on income *over a period of time* rather than at a point in time. Think income statement verses balance sheet. What period of...