ACC547 ACC/547 DQs Week 1

1.For tax purposes, what is the best form of business entity to have? Give examples that support your response.

2. Is a budget always necessary? Why or why not? What is your professional experience relating to this topic?

3. A key goal of tax planning is to legally minimize or defer taxes. This is done by focusing on key components of taxable income. How can timing strategies and income-shifting strategies be used to affect deductions for adjusted gross income (AGI), dependency exemptions, itemized deductions, and tax credits? Provide at least one example for each.

Discussion Question 4: What are the differences between the following components of taxable income? Provide at least one example of each.

o   Deductions for AGI and deductions from AGI

o   Gross income and AGI

o   AGI and taxable income

o   Tax deduction and tax credit

Personal exemption and dependency exemption

Deductions for AGI and deductions from AGI