Questions from Taxation

Q: Distinguish between the concepts of physical presence nexus and economic nexus.

Distinguish between the concepts of physical presence nexus and economic nexus.

Q: Does the federal government require states to use a three-factor

Does the federal government require states to use a three-factor formula to apportion the income of an interstate business for state income tax purposes?

Q: Many local jurisdictions apply a low property tax rate to land owned

Many local jurisdictions apply a low property tax rate to land owned by privately operated golf courses. What is the economic justification for such a preferential rate?

Q: Borden Inc. conducts a business that spans four states. Its

Borden Inc. conducts a business that spans four states. Its total income for the year was $32 million. However, the total of the taxable incomes reported on Borden’s four state income tax returns was...

Q: In what situation would a multistate business deliberately create nexus with a

In what situation would a multistate business deliberately create nexus with a state so that the state has jurisdiction to tax a portion of the business income?

Q: Distinguish between a home country and a host country in the international

Distinguish between a home country and a host country in the international tax context.

Q: What is the purpose of a bilateral income tax treaty between two

What is the purpose of a bilateral income tax treaty between two countries?

Q: Discuss the extent to which adjusted gross income (AGI) is

Discuss the extent to which adjusted gross income (AGI) is actually a net income number.

Q: Explain why an individual’s combined standard deduction can be considered a bracket

Explain why an individual’s combined standard deduction can be considered a bracket of income taxed at a zero rate.

Q: On May 12, 2018, Nelson Inc. purchased eight passenger

On May 12, 2018, Nelson Inc. purchased eight passenger automobiles for its business. Nelson did not make a Section 179 election to expense any portion of the cost of the automobiles, which are five ye...