Questions from Federal Taxation

Q: One of the tax advantages of hiring family members to work in

One of the tax advantages of hiring family members to work in your business is that FICA taxes are avoided. Do you agree with this statement? Explain.

Q: Compute the 2017 standard deduction for the following taxpayers. a

Compute the 2017 standard deduction for the following taxpayers. a. Margie is 15 and claimed as a dependent by her parents. She reports $800 in dividends income and $1,400 in wages from a part-time jo...

Q: Albert established a qualified tuition program for each of his twins,

Albert established a qualified tuition program for each of his twins, Kim and Jim. He started each fund with $20,000 when the children were 5 years old. Albert made no further contributions to his chi...

Q: Describe the nature and purpose of the following taxes: a

Describe the nature and purpose of the following taxes: a. Severance taxes. b. Franchise taxes. c. Occupational fees. d. Customs duties. e. Export duties.

Q: In 2017, Dominique and Felix are married with one dependent and

In 2017, Dominique and Felix are married with one dependent and file a joint Federal income tax return. Their AGI is $316,550, and they claim three dependency exemptions. Compute the taxpayers’ total...

Q: Regarding the value added tax (VAT), comment on the following

Regarding the value added tax (VAT), comment on the following: a. Popularity of this type of tax. b. Nature of the tax. c. Effect on government spending.

Q: Paul and Sonja, who are married, reported 2017 itemized deductions

Paul and Sonja, who are married, reported 2017 itemized deductions of $8,200 and $400, respectively. Paul suggests that they file their Federal income tax returns separately—he will itemize his deduct...

Q: Both a value added tax (VAT) and a national sales

Both a value added tax (VAT) and a national sales tax have been criticized as being regressive in their effect. a. Explain. b. How could this shortcoming be remedied?

Q: Simon, age 12, generates $800 interest income and $

Simon, age 12, generates $800 interest income and $4,000 dividend income for 2017. He incurs no investment expenses. His parents report $80,200 taxable income and file a joint tax return. Determine th...

Q: Butch Bishop operates a small international firm named Tile, Inc.

Butch Bishop operates a small international firm named Tile, Inc. A new treaty between the United States and Spain conflicts with a Section of the Internal Revenue Code. Butch asks you for advice. If...