tax

Tax

1- I just received a 30-day letter from the IRS indicating a proposed assessment. Do I have to pay the additional tax? What are my options?

2- Describe the differences between the three types of audits in terms of their scope and taxpayer type.

3- Under what circumstances would you expect the after-tax return from an investment in a capital asset to approach that of tax-exempt assets (assuming equal before-tax rates of return)?

4- Do after-tax rates of return for investments in either interest- or dividend-paying securities increase with the length of the investment? Why or why not?

5- How do taxpayers determine whether they should deduct their itemized deductions or utilize the standard deduction?

6- Why are some deductions called “above the line” deductions and others called “below the line” deductions? What is the “line”?

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The Samsons are trying to determine whether they can claim their 22-year-old adopted son, Jason, as a dependent. Jason is currently a full-time student at an out-of-state university. Jason lived in his parents’ home for three months of the year, and he was away at school for the rest of the year. He received $9,500 in scholarships this year for his outstanding academic performance and earned $4,800 of income working a part-time job during the year. The Samsons paid a total of $5,000 to support Jason while he was away at college. Jason used the scholarship, the earnings from the part-time job, and the money from the Samsons as his only sources of support.

29. Can the Samsons claim Jason as their dependent?

8- What types of losses may potentially be characterized as passive losses?

9- What limitations exist for self-employed taxpayers in deducting home office expenses, and how does the taxpayer determine which expenses are deductible and which are not in situations when the overall amount of the home office deduction is limited?

10- Describe what is meant by qualified business income for purposes of the deduction for qualified business income.

11- Describe the type of medical expenditures that qualify for the medical expense deduction. Does the cost of meals consumed while hospitalized qualify for the deduction? Do over-the-counter drugs and medicines qualify for the deduction?

12- Do you agree or disagree with this woman who got into law school for claiming to be Native American? I would love to audit these politicians as soon as they get elected, and again 3 years after they leave office.

https://search.yahoo.com/search?fr=mcafee&type=E211US752G0&p=elizabeth+warren+wealth+tax+interview+on+cnbc

(Links to an external site.)

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My sister Donna is a rodeo clown, and this year she expended $1,000 on special “funny” clothes and outfits. Donna would like to deduct the cost of these clothes as work-related because she refuses to wear the clothes unless she is working. Under what circumstances can Donna deduct the cost of her clown clothes?

14- What are some aspects of business that require knowledge of taxation? What are some aspects of personal finance that require knowledge of taxation?

· Describe some ways in which taxes affect the political process in the United States.

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· Describe some ways in which taxes affect the political process in the United States.

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