Questions from General Taxation

Q: Use the same information as in Problem 52. Answer the questions

Use the same information as in Problem 52. Answer the questions indicated, assuming that Ken is considering a SIMPLE plan. Data from question 52: Ken is a self-employed architect in a small firm wi...

Q: Under what circumstances is it advantageous for a taxpayer to make a

Under what circumstances is it advantageous for a taxpayer to make a nondeductible contribution to a traditional IRA rather than a contribution to a Roth IRA?

Q: April, who is under age 50, is considering investing in

April, who is under age 50, is considering investing in tax-free state government bonds or making a permitted tax-deductible contribution to a traditional IRA. Assume that the amounts are the same fo...

Q: Lance is single and has a traditional IRA into which he has

Lance is single and has a traditional IRA into which he has made deductible contributions for several years. This year he changed employers and is now an active participant in his employer’s pension...

Q: What are the differences between a traditional IRA and a Roth IRA

What are the differences between a traditional IRA and a Roth IRA regarding the deductibility of contributions, taxability of IRA earnings, and taxability of distributions?

Q: What is the purpose of a retirement plan? Why does the

What is the purpose of a retirement plan? Why does the government provide tax benefits to retirement plans?

Q: What is the “rule of thumb” noted in the text

What is the “rule of thumb” noted in the text pertaining to the taxability of retirement plan distributions?

Q: For purposes of the tax credit for child and dependent care expenses

For purposes of the tax credit for child and dependent care expenses, explain the limitations concerning the amount of qualified expenses that can be used to calculate the credit.

Q: What are the two broad categories of retirement plans? Give some

What are the two broad categories of retirement plans? Give some examples of each.

Q: Discuss the word basis in relation to the financial accounting term book

Discuss the word basis in relation to the financial accounting term book value. What is meant by the term adjusted basis?