Reducing The Amount Of Foreign Aid Essay

Reducing The Amount Of Foreign Aid Essay
Since the Clinton era, the United States has experienced an unbalanced budget which has spiraled out of control and left the government and its
citizens in trillions of dollars in debt. Even with the unfathomable amount of money owed, it is still possible for the United States to clear the debt, and
regain a surplus budget once again. Possible solutions to reduce the United States national debt include cutting foreign aid, reducing federal department
spending, and eliminating tax breaks for the wealthy.
First, cutting foreign aid, not completely, and only by half will eliminate 17 billion in spending. Reducing the amount of foreign aid does not
necessarily mean depriving developing countries of resources they are dependent on. The perceived obligation for the United States to provide foreign
aid may be reduced by greater donations from other countries, properly managing loans which are granted as aid and enforcing tax regulations within
countries receiving funds. Moreover, alternate supporting countries could contribute a more desirable amount of their gross national income on aid. If
additional donor countries regulated merely four percent more of their gross national income on foreign aid, the added bestowment would effectively
alleviate the United States over a hundred billion dollars, while still maintaining the status quo of what countries in need receive. Alternatively, another
option would be approving loans to developing countries. Loans are a tool capable of
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The Case Of Boxes, Llc, The Distribution Occurs 4
Transaction 1 Code Section 704(c)(1)(B) covers distributions of contributed property to another partner. Under this code section, if contributed
property is distributed within seven years of the contribution date, the contributing partner must recognize some or all of the built in gain that was
deferred at the date of contribution. In the case of Boxes, LLC, the distribution occurs 4 years after the contribution, so Bobby is subject to the
recognition provisions. At the date of contribution, the land has a $350,000 built in gain. Recognition of this gain is deferred and the partnership takes
a carryover basis of $250,000. When the land is distributed, the FMV of the land has increased to $870,000, increasing the built in gain to $620,000...
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At the date of contribution, the partnership took a carryover holding period in the land that Bobby contributed. As a result of the distribution, Larry
will also take a carryover holding period of April 14th, 2003. The character of the gain recognized by Bobby is determined by how it was used by the
partnership. Capital gain property is not subject to the five year character provisions under Section 724. Assuming that Boxes held the land as a capital
asset rather than inventory, the gain recognized by Bobby would be capital in nature. Because Larry is not at least a 50% owner of the partnership, his
intentions for the land are irrelevant in this matter.
Transaction 2
In the event of the retirement of a partner with a disproportionate distribution, Code Section 751(b) provides guidance. In order for Section 751(b) to
apply, the partnership must have both Section 751 and non–section 751 property. Section 751 assets include unrealized receivables and substantially
appreciated inventory. Because the inventory has not appreciated by 120%, of its adjusted basis, the only Section 751 property that Boxes of Books
has is its receivables. Because Bobby's distribution of $845,000 exceeds his 35% share of $840,000, he will recognize a guaranteed payment of $5,000
under Section 736(a). Section 736(a) does not apply to the receivables

The Price Of Rent Prices And Increase The Supply Of Rental...
The concept of negative gearing is a difficult one to make decisions on. This is owing to the fact that, as much as it should, in theory, lower rent prices
and increase the supply of rental properties, it certainly doesn't seem to be the case in the Australian property market. The government's position, as
stated by the Honourable Mathias Cormann, Minister for Finance, is to, presently, not make any changes.
"... the government has absolutely no plans to make any changes to negative gearing... [because] if you are going to reduce the supply of private rental
properties, you will push up the cost of rents and you will reduce housing affordability...".
However, to not make any changes to negative gearing does not seem to be helping the property market, nor the government, but seemingly neither will
abolishing it. By abolishing negative gearing deductions, the government could run the risk of causing defaults, bankruptcies, and emergency sales as
investors struggle or fail to make ends meet with their negatively geared properties, causing properties to flood the housing market and a reduction in
the number of rental properties available. Nevertheless, to leave it unchanged allows high–marginal tax rate investors to continue to minimise their tax,
at the expense of the government, by purposely negatively gearing their investment properties. A change needs to be made to the negative gearing
policy and perhaps the most equitable way is to look at and change the Capital Gains Tax

Capital Gain Tax in Singapore
What does capital gain tax mean and how it will impact the thriving Singapore companies in particular and the peoples in general? Singapore is
deprived of capital gains tax till now which actually attracts the investors to setup their companies or to have their regional branches in this country.
The profit gained out of selling any capital assets is called capital gains. In such cases, there is a substantial difference between the selling and
purchasing price. The selling price comes to be more compared to the purchasing price and the profit that is received out of selling is termed to be
capital gains.
The assets that come under capital assets are bonds, real estate, mutual funds, stocks, fine arts and other similar assets. Hence, in Singapore tax is
imposed on the profit gained out of selling the capital assets. The amount of tax is fixed on it according to specific jurisdictions as every jurisdiction
has different level of taxation based on different other criteria. So, in order to calculate tax, one has to check out the rules of the jurisdiction.
Each jurisdiction has their different types and methods of imposing tax based on various kinds of capital assets. The tax on capital gains is also based
on the time of holding the asset on their disposal. So, capital gains tax on the basis of time is mainly divided into two different categories which are
named as the long–term period and the short term period. Generally, the holding period is calculated from the day when the

A Brief Note On Income Tax Law And Practice
BULAW3731 Income Tax Law & Practice
Individual Assignment
Essay
Submitted by: Name: Simant Sahi
Student ID: 30309353
Purpose of the Assignment To enable you to research an aspect of taxation law and its practice. It is important for you to have time to think through
how to structure and present your responses, and to review and discuss what the law is or should be in a particular area. Whilst discussion with others
is encouraged, the final piece of work must be your own.
Topic
This year in Australia there will be a federal election, and tax reform is currently a topic of debate. The Leader of the Opposition, the Honourable Bill
Shorten MP, recently released an election policy on negative gearing and the treatment ofcapital gains tax discounts as they relate to the housing market
(the Policy).
Required
Identify and explain the key areas of the Policy, then evaluate whether it exhibits the features (characteristics) of a good tax system. In your response
you must include an explanation of negative gearing and the existing treatment of capital gains as they relate to property investors – referring to
sections of legislation, tax rulings and cases where relevant. You must also identify and discuss

Legt2751 Essay
PART A
Joan and Darby ("the taxpayers") have not filed tax returns in five years since 2005. The taxpayers sold their home in 2005 and their concerns are
whether the sale has had any tax consequences for them.
CGT Event The first issue is whether the sale of the taxpayers Hunter's Hill home on 15th May 2005 has triggered a Capital Gains Tax("CGT") event.
The applicable statute relevant to this issue is s104–10[1] of the ITAA97[2]. Since the taxpayers' home was disposed of with a change of ownership it
has therefore triggered an A1 CGT event. s104–10 also states that the event occurs when the contract was entered into; in the taxpayers' case that is
15th May 2005 and not the 30th June 2005.
CGT Asset Another issue is... Show more content on Helpwriting.net ...
Therefore the ITAA97 has specified two main ways of adjusting the calculation. The first method is called the discount method and it outlined in s115.
It can be used only on assets where the CGT event occurred after 21 September 1999 and by individuals. The taxpayers satisfy both of these conditions
and can therefore use this method. s115–100 states that individuals are to discount their capital gain by 50%. The second method is called the indexation
method and is set out in s110–36. Indexation adjusts the cost base (except the third element) and can only be used if the CGT event occurred after 21st
September 1999. Furthermore, the section states that the taxpayer needs to choose to use the indexation method; if no choice is made the discount
method will be automatically applied. Therefore, the taxpayers may be limited to using the discount method as it can be assumed they did not specially
choose the indexation method at the time of the CGT event in 2005. However, s103–25 states that the choice needs to be made on the day the taxpayer
lodges their tax return. Since the taxpayers are yet to lodge theirs, they are still eligible to use this method. s960–275 sets out how to calculate the index
factor:
[pic]
Using this formula the taxpayers should use an index factor of 1.730715.[9]
Separating the assets As previously mentioned, the contract in which the taxpayers entered into changed in 1985. It should be noted that while the
contract with Oz to

Taxes On Land And Property Essay
Taxes on land and property have both fiscal and non–fiscal effects. The revenue such taxes produce is often an important source of finance for local
governments. The extent to which those governments have control over property taxes is thus often an important determinant of the extent to which
they are able to make autonomous expenditure decisions. The level, design, and control of property taxation are thus, in many countries, critical
elements in effective decentralization policy.
But property taxes are not always local taxes, and whether they are or are not local, like all taxes they must also be considered from a more general
policy perspective. From this perspective, property taxes may be viewed, depending upon one's assumptions, the environment in which they are
applied, and their design and effectiveness, as an equitable and efficient way of raising revenue or they may be considered to be a regressive and
undesirable form of public finance.
A large number of studies have shown that;
1. Property taxes are generally heavier on non–residential (and especially commercial) properties than on residential (single–family) homes.
2. When there is considerable local discretion with respect to property taxes, there are also likely to be great differences in effective tax rates.
In the instant case, we will discuss the system of taxation on the returns on property holding as prevalent in the USA and evaluate its effect on, equity,
housing prices, and the economy.
2. Capital

Taxation Essay
In America, the powerful and wealthy are able to abuse the taxation system to their benefit, and this paper will demonstrate how this is done and the
solutions to those problems, as well as refute the opposition.America has had it's moments of glory and triumph yet also it's moments of failure and
loss. However, it seems nearly impossible to predict an economic recession or a war, so one can never know when tough times are approaching.
Currently, America is in the second longest period of stock market growth, ever. The natural conclusion, then, is that the economy here is healthy and
strong, and that this growth will continue. Unfortunately, however, America's stock market is in for a correction sooner or later, because the wealth and
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While the maximum tax rate on normal income is 39.6%, the maximum tax rate on capital gains, which is how many investors become rich, is
20%("How are capital gains taxed?"). In fact, investor and billionaire Warren Buffett said that in his taxes, he "Pays a lower rate than his
secretary"(HOAR). Does it honestly make sense that a man with 77 billion dollars pays less in taxes than his secretary? It is evident that capital
gains taxed at such a low rate encourage this. The third loophole, and the product of politicians and wealthy citizens of the state of Kansas, is a 0%
tax rate on Limited Liability Companies, or LLCs. The idea for the tax break was to give the state's economy a "Shot of Adrenaline", and it allowed
thousands of corporations to pay little in taxes. This means that those companies could employ more people, and spend more money on research and
development. So how could this be negative? In short, it allowed individuals to form Limited Liability Companies with only a single employee:
themselves. This means that very wealthy people can organize into an LLC, and pay nothing in income taxes, cheating the system. However, it is
impractical for the poor to do the same, as they don't have nearly as much to gain from this. According to Kansas Attorney James P. Zakoura, This
costs the state of Kansas "at least $260 million in needed revenue year after year"(MONTGOMERY). The tax system in America is unfair to

Hillary Is A Famous Mountain Climber
A newspaper has approached Hillary (who is a famous mountain climber) with the offer of writing her life story for a sum of $ 10,000. Hillary has
no prior experience in writing but still accepts the offer and subsequently completes the story on her own. She provides the story to the newspaper and
its copyright to the newspaper for the previously agreed consideration. Besides, she sells the resultant manuscript of the story along with expedition
photographs for a monetary consideration of $ 5,000 and $ 2,000 respectively. The primary issue in the question is to ascertain the tax treatment of the
above mentioned payments in the hands of Hillary. Besides, it also needs to be discussed if the answer would alter if Hillary was driven by her ... Show
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As per the court, the above donations collected by the taxpayer shall be treated his assessable income in accordance with Section 6(5). It is because
it was reasonable on any third party to expect that this income would be derived by performing these activities and hence the income was expected
(Gupta, 2009). This understanding can be extended to Hillary's case also as in this case even though Hillary may write the story for satisfaction of
self but it would be expected on the part of any reasonable third party that her story would have commercial value due to the fame she has achieved
owing to her profession. As a result, when she decides to sell this, these proceeds which she derives in the given case would be treated as income
from personal exertion as these are expected payments to be derived from the given activity (Gilders et. al., 2016).
As per the information provided, the parent has extended a loan to the tune of $ 40,000 to her son while the son promised to make a payment of $
50,000 at the end of the tenure of five years. The parent expressed that she had no desire to earn any income from extending the loan and had
expectations with regards to repayment of principal amount only. However, in actuality the son made the repayment of the principal after two years
and voluntarily provided interest income of $ 4,000 calculated at the rate of 5% pa. The main issue is to

Tax Benefits Of The Tax
Under the tax law, certain tax benefits can significantly reduce a taxpayer's regular tax amount. The alternative minimum tax (AMT) applies to
taxpayers with high income by setting a limit on those benefits. It helps to ensure that those taxpayers pay at least a minimum amount of tax. The AMT
is the excess of the tentative minimum tax over the regular tax. Therefore, the AMT is owed only if the tentative minimum tax is greater than the regular
tax. The tentative minimum tax is figured separately from the regular tax. In general, compute the tentative minimum tax by:
1."Computing taxable income eliminating or reducing certain exclusions and deductions, and taking into account differences with respect to when
certain items are taken into account in computing regular taxable income and alternative minimum taxable income (AMTI)"
2."Subtracting the AMT exemption amount"
3."Multiplying the amount computed in (2) by the appropriate AMT tax rates"
4."Subtracting the AMT foreign tax credit" (IRS.gov, 2016) (p. 1)
The federal tax law sets the AMT exemption amounts and AMT tax rates. Taxpayers can use the special capital gain rates in effect for the regular
tax if they are lower than the AMT tax rates that would otherwise apply. Some tax credits that reduce regular tax liability do not reduce AMT tax
liability. If a taxpayer is not liable for AMT this year, but he or she paid AMT in one or more previous years, they may be eligible to take a special
minimum tax credit against their

Application Of Capital Gain Taxation Essay
CASE STUDY –1
INTRODUCTION:
For the application of Capital Gain Taxation (CGT) provisions under the Australian taxation system, the happening of a CGT event is must. The most
common capital gain tax event is a sale of assets. These assets may be generally the either the real estate or the shares. However, there are other events
also which are considered as CGT events.
TO WHOM APPLICABLE:
The provisions of the capital gains or losses are applicable on the following three kinds of legal personalities: Individuals. Companies. Trusts.
The CGT is applicable only on the residents of Australia. It may be applicable on the foreign nationals only if they hold an Australian property.
PROPERTIES THAT CAN BE TAXED:
The provisions of the CGT are available only on the properties which are acquired by any individual company or trust after 20th September, 1987.
The CGT provisions were introduced on the above mentioned date and it was applied prospectively. Thus, the properties acquired before 20th
September 1987 are not meant to be taxable under CGT.
The capital assets under CGT may be defined as either of the following: Property of any kind. Legal or equitable rights.
Some exemptions are also been provided under the legislation. Most of the personal assets like residential homes, vehicles and other personal assets
have been exempted from the provision.
DETERMINATION OF THE HAPPENING OF THE CGT EVENTS:
Capital gain taxes are

STanley Essay
On February 8th, 2002, Stanley Works announced to reincorporate itself as a Bermuda–bases corporation with main intention to save huge amount of
money in corporate income taxes. The decision had both positive and negative impacts overall. Stanley's market value had jumped $200 million
dollars– a gain of over 5%– the day after they announced the deal. Three months later, on May 10th, they lost $250 million of market value. Corporate
inversion is one of the many strategies companies employ to reduce their tax burden. In other words, a corporate inversion is a process that a company
undergoes to change the domicile of the U.S. parent corporation in a multinational corporate conglomerate to a country other than the United States. ...
The United States employs a worldwide taxation system accompanied by a complex system of foreign tax credits. So What the U.S Tax? The United
States taxes the worldwide income of its citizens (both resident and non–resident). Accordingly, there is a system of foreign tax credits– a partial credit
system– that aims to avoid double taxation (Desai, 2005). How the U.S Tax? The FTC system in the US allocates some expenses, such as interest
payments and R&D expenses, based on measures of worldwide activity. Other parts of the tax code apply ratios depending on the circumstances,
such as the allocations for export income 863(b) of the U.S Tax Code. When to Tax? Active income of incorporated affiliates overseas is taxed only
when dividends are remitted. Active income excludes Subpart F income. And where the U.S. tax? For the most part, the U.S. permits worldwide
averaging. Companies are required to segregate income into "basket" and perform tax credit calculations on each of the baskets. The U.S. system
creates two classes of firms: "excess credit" firms who foreign tax rate exceeds the U.S. statutory rate, and "deficit credit" firms, whose foreign tax
rate is less than the U.S rate. And some incentive effects created by the U.S system apply to both types of firms and other

Buffett Rule Research Paper
The Buffett Rule
Introduction
The American economy has been growing at a slower rate in recent years than seen in the past. This slow growth has caused the wages of American
workers to stagnate. Despite the promise of the 'American Dream,' the distribution of income in the United States is less equal than that of most
countries. Many Americans now believe that the tax system may be the cause of this inequality, or at least a possible solution to reducing inequality.
Efficiency vs. Equity The tradeoff between the values of efficiency and equity is often found in government intervention. In theory, unbridled
capitalism free from market intervention would result in the most efficient outcome. However, sometimes the most efficient result is not the best result.
As Warren Buffett recently said, "the market system works, but it doesn't work for everybody. It works in the aggregate." The progressiveincome tax
system in the United States is intended to result in the rich having a higher effective tax rate than the lower and middle classes. This higher taxation on
the rich helps make the after–tax income ... Show more content on Helpwriting.net ...
Paul Ryan believes that the implementation of the rule would be "class warfare." The rule may increase the complexity of the federal income tax
system, forcing high–income individuals to hire more attorneys and accountants. Many conservatives oppose any new revenue for the federal
government because they believe it is inherently inefficient and private individuals do a better job spending their own money than the federal
government does. Others believe that the rule would cause the after–tax return on investments for many high–income individuals to fall. This may
result in decreased investment. However, Warren Buffett states that he "has yet to see anyone– not even when capital gains rates were 39.9 percent in
1967–77 – shy away from a sensible investment because of the tax rate on the potential

Money Too Richer While The Poor Are Getting Poorer
The saying goes, the rich are getting richer while the poor are getting poorer. The government has always had several issues with which to contend, one
of the major arguments has been, do the rich pay enough on taxes? This argument on rich paying enough in taxes has been around since the start of
American history. On one side of the argument, people feel the currenttax rates are at maximum levels, the "Buffet rule, which calls for a minimum
tax rate of 30 percent on those who make more than $1 million a year is essentially already in effect" (Dubay 353). This argument clearly states the
rich are currently paying more than enough in their fair share of taxes. The other side of the argument is the rich are not paying enough in taxes. In the
bigger picture our country, schools, roads, and people are going down fast and hard. The government can choose to raise the federal tax rate on the rich
but "high–earners also happen to be business owners, investors, and entrepreneurs" (Dubay 353). The government's excuse saying high earners are an
integral part of the economic opportunity in employing low and middle–class families is only an excuse for letting the rich keep their money and earn
more. The government says the rich are paying their fair share of taxes, fair is paying on all taxable income, including capital interest to be taxed at a
level commensurate with the rich and super–rich level.
Who are the rich? President Barack Obama considers a single person making $400,000 a year

Agricultural Policy in the United States
The beginning of agricultural policy in the United States situated around developmental policy until the great depression. The impact of the Great
Depression led to farmers losing money, and the United States Government to begin passing laws to distribute subsidies to farmers. Government
subsidies and tax policies have both helpful and harmful impacts to the environment. The government has regulated farming in the United States to
domestically have little international competition through laws enacted after the Great Depression. More recent laws have manipulated farming to
become more than a means of self–sustenance, but a corporate capital–oriented industry. The impact of federal policy in agriculture on the environment
has ultimately benefited large scale agribusinesses at the cost to taxpayers, small farmers, and the environment. The federal government offers a
wide range of aid to farmers, including: price supports and price floor programs; crop insurance against both lost crops and lower than expected
prices; government purchases of excess food stocks; and promotion of domestic crops through international trade agreements. The United States was
forced to develop agriculture price and income support policies after the end of World War I due to the closing of major international export markets.
The passing of laws of agricultural subsidies, a price aid to farmers grew from the farm income and financial crises. Agricultural subsidies are justified
as necessary to

Tax 5015 (Spring 2011) вЂ“ Chapter Review Exercise #7
TAX 5015 (Spring 2011)– Chapter review exercise #7
Topic review: Partnership formation and operations
Due date: March 23/24, 2011
Name(s): SOLUTION
Part 1: Partnership formation. In January of 2010, Jason and Jesse contribute the following assets to become equal partners in the J&J General
Partnership.
Partner
Jason
Jesse
Property contributed
Cash
Office equipment
Land
Building1
Cost
MACRS depreciation taken
49,000
17,000
52,000
15,000
8,000

Fair value
25,000
75,000
35,000
75,000
Note: (1) The building is subject to a nonrecourse liability of $10,000, which is assumed by the partnership.
The partnership will use all of these assets in its business. Subsequent to forming the partnership, J&J ... Show more content on Helpwriting.net ...
Treasury bond interest
Long term capital gain
Short term capital loss
City of Orlando bond interest
Salary expense
Sec. 1231 gain
Guaranteed payment to Nelson
Guaranteed payment to Howard
MACRS cost recovery
Straight–line depreciation (used for book purposes)
Charitable contributions
Key–man life insurance premiums
Other expenses
Cash distribution to Nelson
Cash distribution to Howard
Mortgage incurred to purchase new office building
$ 900,000
130,000
20,000
35,000
5,000
25,000
450,000
13,000
100,000

150,000
74,000
42,000
12,000
8,000
160,000
20,000
40,000
90,000
(a) Compute Magic's 2010 ordinary partnership income (loss) and list the separately stated Items.
Ordinary partnership income (loss)
Gross profit
$ 900,000
Salary expense
(450,000)
Guaranteed payments (250,000)
MACRS
(74,000)
Other expenses
(160,000)
Ordinary p/s loss
(34,000)
Separately stated items
Dividends
$ 130,000
U.S. Treasury interest
20,000
35,000
(5,000)
Tax–exempt interest
25,000

Sec. 1231 gain
13,000
Charitable contributions
(12,000)
Key–man life insurance
(8,000)
Guaranteed payments
(250,000)
Distributions
60,000
(b) Compute each partner's basis at the end of 2010.
Beginning basis
Mortgage
Dividends
U.S. Treasury interest
Sec. 1231 gain
Tax–exempt interest
Distribution

Tax Implication Of Capital Assets Essay
Tax implication of Capital Assets: As mentioned above, when an asset is sold it may be sold in excess of the owner's basis. When this occurs the
taxpayer may be taxed on the gain at the more favorable capital gains rate (typically around 15%). What was not discussed in prior modules, was the
treatment of capital gains for corporations, treatment of capital losses for both individuals and corporations, and how the length of ownership impact
the classification and tax treatment of assets upon their sale.
The IRS addresses the topic of capital assets in Section 1221 (Legal Information Institute). Within this section, rather than defining what qualifies as a
capital asset, The Code lists items that are not capital assets. This backwards approach has led to a grey area in regards to what classifies as a
capital assets. As a result, many court cases have been on this topic. Once it is determined whether an asset is "capital in nature", the various tax
treatments can be considered. Specifically, capital assets sold at a gain that are held for less than one year at the time of sale will be classified as a
short term gain (Investopedia, 2015). Short term capital gains can be used to offset short term capital losses for both individuals and corporations,
however any excess short term capital gains will be taxed at the taxpayer's regular tax rate. In addition, long–term capital gains experienced by a
corporation are not subject to the more favorable capital gains rate. Also, when

Long Run Research Paper
What are tax consequences and how can it affect you in the long run? It is said, "taxes are the rice we pay for a civilized society" (Debt.org). What
different ways are there to avoid or at least minimize tax consequences? There are some ways to make paying taxes also beneficial.
Capital Gains Taxes
There are many different types of taxes out there that everyone has to pay at some point in their life. There is a tax on Income, for instance, capital
gains taxes, estate taxes, and inheritance taxes. Next is property tax, the taxes you pay towards your real estate. Lastly taxes on goods and services,
excise taxes and user fees. These are all important required taxes to live in the United States but what is each tax in–depth? An overview ... Show more
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They do not always go up in value they also go down. If a person were to sell an asset for less than its basis, that person would face capital loss. This
would come from a loss from investments, but not from the sale of personal property that can be used to offset capital gains. An example would be if
a person has $50,000 in long–term gains from selling one stock, but have "$30,000 in long–term losses from the sale of another, then that person could
only be taxed on $20,000 worth of long–term capital gains." (TurboTax) Although if "capital losses are over the capital gains, then the person can use
the loss to offset up to $3,000 of the other income. If there is more than $3,000 in capital losses, the excess can be carried forward to future years to
offset income in those years"

The Externalities Of Taxation On Capital Gain
The externalities of taxation on capital gain have been a controversial debate among scholars, economists and policy makers along the timeline of
ever–changing tax reforms in the history of the United States. This introduction covers all the possible externalities that change in marginal tax rate can
have on investors' incentives and timing to sell, portfolio strategy, tax revenue collected by the government and the social welfare changes.
The first thing to clarify is that there are both positive and negative externalities on the effect of taxation on capital gain. Timing to realize the capital
gain is paramount since in the United States long–term gains (typically 1 year or more) will be taxed at a significantly lower rate than ordinary ... Show
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Since a higher tax rate leads to a lower amount of realization on capital gain, it would consequently reduce the transaction fees or commission fees
charged by the agencies, which eventually reduces the market activity and causes a welfare loss.
The externality of a lower tax rate on the tax revenue could go either way. When we only consider the static analysis, we have a negative externality
that the tax revenue decreases obviously since the same amount of realization is being taxed at a lower rate. When we consider other offsetting
factors, positive externalities come in to play important roles. The first positive externality is due to the "unlocking effect" that increases the amount
of realization on capital gain, which therefore increases the tax revenue. The other positive externality is that lowering the tax rate on capital gain
would result in an increase in tax revenue due to peopleing pay taxes on higher value of their assets when realized since the value of existing stocks
increases.
The two articles I'm comparing in this paper, The Effects of Taxation on the Selling of Corporate Stock and The realization of Capital Gains by
Feldstein, Slemrod, and Yitzhaki (1980) and Measuring Permanent Responses to Capital–Gains Tax Changes in Panel Data by Burman and Randolph
(1994), both primarily focused on the "lock–in" externality, with Feldstein examining externality on tax revenue as well.
Literature reviews
Economists have debated about how realizations of capital

Creating A Business Entity With Her Friend Dan Nemec From...
Amy Bold is thinking about creating a business entity with her friend Dan Nemec from the Czech Republic. Since Dan is a non–resident alien, Amy is
concerned whether it imposes any problems and what would the tax consequences be. Dan doesn't spend any time in the United States, and the business
would provide services in both the United States and the Czech Republic. Amy was informed that Dan's status of a non–resident alien eliminates the
opportunity to create an S corporation; therefore, Amy was thinking about establishing a partnership. While Amy's choice of creating a partnership is
appropriate, she and Dan still have to decide whether they will create a U.S. (domestic) partnership or a foreign partnership. Each of these entities has...
income, and a U.S. partner is allocated less than 1% of income, gain, loss, deduction, or credit. Additionally, Form 8865 will have to be filed any time
that Amy (or other U.S. person) acquires, disposes or changes at least a 10% interest in the foreign partnership. Amy, a U.S. citizen, will be subject to
taxation in both the Czech Republic and the United States. She has to report her share of the foreign partnership income, gains, losses, deductions,
and credits on her U.S. tax return. However, Amy can claim a foreign tax credit and report her distributive share of foreign taxes paid or accrued. Her
status as a resident of the U.S. will not be affected by her involvement in the foreign partnership, and she will not be subject to any withholdings.
Because the partnership will be involved in a U.S. trade or business, Dan, a non–resident alien, will be subject to taxation in the Czech Republic and he
will also be subject to withholdings in the United States. Dan's distributive share of partnership income derived from a U.S. trade or business will be
treated as an effectively connected income (ECI) subject to a maximum withholding of 39.6%. The same treatment will be applied to guaranteed
payments representing a distributive share of U.S. income, guaranteed payments representing payment for services provided by personal conduct of a
U.S trade or business, and guaranteed payments representing payment for use of capital in personal conduct of a U.S. trade or

Strategies For An Employee From A Tax Perspective
ISOs are often preferred by startups as it's supposed to be better for an employee from a tax perspective. This assumes that (1) AMT won't be triggered
and (2) you'll get low long–term capital gains rate by holding the stock for the appropriate holding periods. However, often you either run afoul of the
AMT trap, or don't hold the stock long enough with the complicated 1 year + 2 year requirement, or the spread at exercise is zero or small, so the
difference wouldn't matter anyway. NSOs do have a slightly higher tax because of the employment taxes. Overall, it's not clear the ISO is that much
better for employees, so many people argue for NSOs instead. Even more confusingly, ISOs can make it harder to meet the long–term capital gains
holding period. Many people expect early exercise together with an 83(b) election will help them hold the stock longer, to qualify for long–term
capital gains. While this is true for NSOs, there is a murky part of the rules on ISOs that implies that even with an 83(b) election, the capital gain
holding period does not begin until the shares actually vest. So, if you want to immediately exercise an option and file an Section 83(b) election, and
you might have liquidity soon, it's better if you can have it be an NSO.
Taxes on RSUs
If you are awarded RSUs, each unit represents one share of stock that you will be given when the units vest. When you receive your shares you are
taxed on their value at that time. If you are an

Capital Gains Tax During The Civil War
Tax began in America during the Civil War when congressed passed the Revenue Act of 1861. This was a tax on personal incomes to help pay the
wages of the ongoing war. From this time different acts have been included and repealed on capital gain and taxes. From the past to current, the United
States has shown the importance capital gains tax. This paper will give a brief history of how capital gains tax began in America, where the United State
is now, pros and cons for arguments for and against capital gains tax and how America stacks up to other countries.
Capital gain taxation in America has been around since the Civil war when a tax on income began and a rise in taxing capital gain started. After
many repeals and acts about taxation, the ratification of the Sixteenth Amendment came about which allows Congress to levy an income tax
without apportioning it among the states or basing it on the United States Census (gov.) Between 1913 and 1922 taxes on capital gain ranged from
the top rate of 7 percent and 12.5 percent being held at least two years. (Capital gain tax) Next came the Tax Reform Acts of 1969 and 1976. The
Tax Reform Act of 1969 set a 10 percent minimum tax not including gains, and put a limit on alternative tax up to $ 50,000 of gains. (Capital gain
tax) The next Act of 1976 further increased capital gain taxes by increasing the tax rate to 15 percent. By 1978 the maximum tax rate reached almost
50 percent, which caused for Congress to reduce capital gains tax

Taxation Is An Issue That Has Plagued The United States Essay
Taxation is an issue that has plagued the United States even prior to the founding of the
nation and the issue at hand is fair taxation. American Colonists were being taxed unfairly
without parliamentary representation, and now ordinary modern Americans are being taxed
unfairly without legal representation. There is a sector of the citizenry that hold the belief that the
progressive tax code, employed by the United States, and is fair as the wealthy pay a higher
marginal tax rate with the operative word being marginal. Typically, wealthy Americans have a
much lower effective tax rate as they have the financial means to employ shrewd accountants
and tax attorneys who find and leverage the many deductions buried within the language of the
70,000+ pages of our current tax code. These are a multitude of deductions of which average
citizens are unaware. A prime example of someone able to lower his or her effective rate of
taxation is the former governor of Massachusetts, Mitt Romney. According to CNN Money, Mitt
Romney made $21 million dollars in one year, but only paid an effective rate of fifteen percent,
which was far lower than the rate he should have paid. Our progressive tax system is one that is
littered with loopholes that allow for the wealthy to avoid paying their fair share of taxes. Again,

the loopholes require detective work by qualified attorneys and accountants as the federal tax
code spans 70,000+ of pages of archaic and convoluted text. Not even

Pros And Cons Of Capital Gains In The United States
Individuals in the United States are being unfairly taxed on their capital gains. For several reasons that I have outlined below, the capital gains rates
should not be increased and in fact should be cut.
Background
When the income tax first came to be in the United States capital gains were taxed the same as all other forms of income, which at the time only
applied to people with high incomes. Given this, very few capital gains were taxed but when taxed they were subject to very high rates. Taxpayers
opposed this standard as a single transaction (such as selling the family business) could push individuals who might not be taxable into high tax
brackets. To provide a solution to this issue Congress created an alternative rate on capital ... Show more content on Helpwriting.net ...
For example, startup companies are usually financed by equity and retained earnings and will not pay a dividend for many years. Therefore, the vast
majority of the returns these startups pay to investors are in the form of capital gains. It is beneficial for society to support investments in such risky
businesses, as investments such as these could become the foundation for companies such as Apple and Google. A lower capital gains rate encourages
investment in these risky ventures. If these companies succeed, though a vast majority don't, the government still receives a share but it is much
smaller. However, in the probable case that these companies fail, only a portion of the loss in assets can be deducted from other income. Therefore,
there is an inherent asymmetry between the gains and losses in such investments, which a lower capital gains rate partially

Capital Gains Tax in Nigeria
Term Paper written by Onipede Ibidunni Seun on Capital Gains Tax in Nigeria
Introduction
Discussing capital gain tax without first presenting a general overview of the entire concept of taxation will be tantamount to putting a cart before a
horse. It is therefore very important that justice be done by explaining taxation and various types of taxes.
Taxation: A General overview
Tax and taxation has been variously defined by different authors. Oyegbile (1996) defines tax as a sum of money paid by citizens of a country, state or
community to the government for public purpose. According to him taxation is one of the sources of income for government; such income is used to
finance or run public utilities and perform other social ... Show more content on Helpwriting.net ...
Such documents must be stamped before they can be tendered as evidence in a court or presented for registration. * Probate tax: This is the tax
paid on the property or estate of a deceased in order to obtain letters of administration of the estate. The chargeable amount is based on the open
market value of the estate, as at the date of death of the deceased. * Capital transfer tax: This tax is imposed on the capital value of properties
transferred. This tax was introduced in nigeria in 1979 via the federal government official gazette No. 18, vol. 66. The law was enacted to curb
embezzlement of public funds by private individuals since the bulk of any money stolen will be subjected to heavy taxation when the estate is to be
transferred. * severance tax: This tax is levied on the extraction of natural resources like agricultural produce, forest resources, petroleum and metallic
stones e. t. c. this tax is levied to ensure that the benefits from the natural resources which in real sense are God given free gifts of nature are shared
by all. * Capital gains tax: This tax came about as a result of Decree 44 of 1977. It is a tax on the gains which speculators or other property dealers
realize on sale of real estate or landed property. * Site value rating: This is a tax on unimproved capital value of the site. The tax was introduced to
encourage owners of undeveloped land to put them into immediate profitable use.
STRUCTURE OF THE NIGERIAN TAX

Capital Gains Tax Case Study
BRIEFING NOTE FOR THE FINANCE MINISTER
INCREASING THE CAPITAL GAINS TAX FROM 50% TO 100%
Purpose: The purpose of this briefing note is to provide the finance minister, Bill Morneau, with insight on the merits of an increase, from 50% to
100%, in the tax on capital gains.
Statement of the Issue:
The federal government is currently running a large budget deficit. "By the end of the current fiscal year, the country will be almost $31 billion in the
red...$1.3 billion beyond the $29.4 billion deficit [] forecasted in the March 2016 budget" (Minsky, 2016).
Prime Minister Trudeau has, instead, expressed the government's intentions to decrease the debt–to–GDP ratio, a reflection of the government's ability
to pay back its debt:"we will continue to ... Show more content on Helpwriting.net ...
(2016, October 13). This year's deficit could be as high as $34 billion, or $16 billion higher than expected: TD Bank. Retrieved March 12, 2017, from
http://business.financialpost.com/news/economy/td–banks–expects–canada–to–run–larger–deficits–than–trudeau–budgeted
Lammam , C., & Eisen, B. (2016, March 28). Don't blame the economy for Trudeau's deep deficits. Retrieved March 12, 2017, from http:/
/business.financialpost.com/fp–comment/dont–blame–the–economy–for–trudeaus–deep–deficits
Minsky, A. (2016, November 14). Deeper deficits, no sign of balanced budgets in economic forecast. Retrieved March 15, 2017, from http:/
/globalnews.ca/news/3038932/finance–minister–bill–morneau–releases–economic–outlook/
Mitchell, D. J. (2014, November 07). The Overwhelming Case Against Capital Gains Taxation. Retrieved March 12, 2017, from https:/
/www.forbes.com/sites/danielmitchell/2014/11/07/the–overwhelming–case–against–capital–gains–taxation/#7f71ff3c3b0a
Tencer, D. (2016, October 13). Deficits To Be Larger Than What Liberals Advertised: TD Bank. Retrieved March 12, 2017, from

The Taxation Of South Africa
(Alternative version to first line "Just as an egg will vary from hen to hen, so do tax systems from country to country.")
As there are no two eggs that are identical, tax systems vary from country to country. Each country has its own rules and principles to levy taxes from
its citizens and foreigners to whom it conducts business in order to support its operations. South Africa is no different. When a country's own people
conduct business, or foreigners invest or trade within its domestic jurisdiction, it is necessary for the tax system to balance carefully its domestic and
international economic objectives. It is essential to understand how the taxation system is applied to residents and non–residents in order to maximize
one's own ... Show more content on Helpwriting.net ...
Income is taxed in the country where that income originates, irrespective of the legal or physical residence of the recipient. Even though South Africa
Adopted the residence based system in 2011, many states will still tax the income derived by a person from commercial activities undertaken in their
states. A source–based system of tax imposes a taxation liability on income arising within a specific jurisdiction or territory.
From the Appellate Division of Kerguelen Sealing & Whaling Co., Ltd v CIR ЛЎ, the fundamental logic of a residence based tax system has been
contrasted to that of a source based system in the following: "In some countries residence (or domicile) is made the test of liability for the reason,
presumably, that residents, for the privilege and protection of residence, can justly be called upon to contribute towards the cost of good order and
government of the country that shelters him. In others (as in ours) the principle of liability adopted is 'source of income': again, presumably, the equity
of the levy rests on the assumption that a country that produces wealth by reason of its natural resources or the activities of its inhabitants is entitled to
a share of that wealth, wherever the recipients of it may be live. In both systems there is, of course, the assumption that the country adopting the one or
the other has effective means to enforce the levy."
For tax purposes, it is important to know how

Wealth Inequality In South Dakota
In order to understand what could cause wealth inequality, the income in South Dakota will be examined. While it is well understand that income
distribution and wealth distribution are two separate entities, the two are related and generally cause one another. In South Dakota, from the 1970's to
the mid 2000's the household income of the bottom fifth grew by 24.3% (in real dollars) however, the income of the top fifth grew by 91.7%. In
addition, if the timeframe is shortened to the 1990's to the mid 2000's the bottom fifth had a decrease in income of 12.5% yet, the top fifth still
experienced 25.7% growth. As a result, South Dakota experienced the second highest change in income inequality during these periods (McNichol).
The dramatic change... Show more content on Helpwriting.net ...
The answer? There is no single answer when it comes to wealth in South Dakota. Between the impoverished regions of the reservations and the large
wealth of the average farm and numerous small business, the distribution is difficult to accurately measure. Income taxes in South Dakota would not
be very effective based on the aforementioned facts. Another solution could be implementing a capital gains tax. However, once again, South Dakota
has a tremendous amount of money in agricultural real estate totaling over 67 billion dollars (South Dakota Transfer of Wealth Update Technical
Report). While there is a great amount of money there, capital gains would be unable to tax this. In addition, the lack of capital gains taxes has
brought a great deal of financial centers to the state, benefiting the population. Consequently, proposing a capital gains tax could cause these
companies to leave and South Dakota might be left worse off. Property taxes could be one solution to redistribute this vast amount of wealth however,
South Dakota already ranks 36th highest out of all the states in property taxes (Kieren). An increase in property taxes would therefore be difficult to
propose and pass in the legislature. So what based on all of this information should South Dakota do anything? The answer, is maybe to do nothing.
Wealth inequality is certainly a growing issue nationwide but, in South Dakota it doesn't appear to as drastic as a problem. Furthermore, the
complications of an agriculture economy makes solutions complicated. South Dakota may have some wealth inequality but, for now, it doesn't appear
to be a major

Application Of Capital Gain Taxation ( Cgt ) Provisions...
INTRODUCTION:
For the application of Capital Gain Taxation (CGT) provisions under the Australian taxation system, the happening of a CGT event is must. The most
common capital gain tax event is a sale of assets. These assets may be generally the either the real estate or the shares. However, there are other events
also which are considered as CGT events.
TO WHOM APPLICABLE:
The provisions of the capital gains or losses are applicable on the following three kinds of legal personalities: Individuals. Companies. Trusts.
The CGT is applicable only on the residents of Australia. It may be applicable on the foreign nationals only if they hold an Australian property.
PROPERTIES THAT CAN BE TAXED:
The provisions of the CGT are available only on the properties which are acquired by any individual company or trust after 20th September, 1987.
The CGT provisions were introduced on the above mentioned date and it was applied prospectively. Thus, the properties acquired before 20th
September 1987 are not meant to be taxable under CGT.
The capital assets under CGT may be defined as either of the following: Property of any kind. Legal or equitable rights.
Some exemptions are also been provided under the legislation. Most of the personal assets like residential homes, vehicles and other personal assets
have been exempted from the provision.
DETERMINATION OF THE HAPPENING OF THE CGT EVENTS:
Capital gain taxes are only triggered by the CGT Events. Although there are many

Federal Tax And Federal Income Tax
To most, the term federal income tax is just paying the government or money they don't get. But in government and the world of finance, it is major
and involved idea which involves a great deal of focus and discussion. The United States' federal income tax is a complex system which is a necessary
function of the government. A taxable amount is determined on income, and it creates taxation for the government to accumulate money. There are
many factors that play into the complexity of the system which developed the processes of the federal income tax today. Understanding this financial
system requires a level of insight into the layers of information that the federal income tax entails. Taxation in America has always been a huge
factor of societal and governmental focus. The nation started with a hatred for taxes dating back to the tax burden placed on the American colonies
by Great Britain. Early in its history, America had few very few taxes. However, it became the major source of revenue for the United States
government. The War of 1812 created a higher need for taxation, and initiated the nation 's first sales taxes which were placed on gold, silverware,
jewelry, and watches. But in 1817 the internal taxes were repealed, and the government relied on tariffs on imported goods for funds. Once again, the
onset of war generated a necessity of greater revenue, and in 1862, during the civil war, the nation's first income tax was enacted. This income tax was
the foundation to

Avoid Real Estate Investment Tax
Minimization of Individual Tax Liability in Real Estate Investment
In the world of investing, in general, one question is often the most challenging to answer. How does an investor grow their nest egg without losing
the majority of their gain to the IRS as income tax? This question is even more challenging in the area of real estate where one's tax liability is
drastically increased by just the sale of one property. This simple transaction can increasing the investor's ordinary income if the property is a short
term investment (investment is less than 1 year) or increasing their capital gains for long term investments (over 1 year). Surprisingly, there are several
easy ways to drastically reduce tax liabilities with some planning and ... Show more content on Helpwriting.net ...
In this case the custodian withdraws its fiduciary responsibility and allows you to choose the investments that you think are appropriate, such as
investment property. (Casey 2013, 168)
At first glance the self–directed IRA can seem like the perfect way to leave the stressful world of the stock market but the seemly endless rules can
quickly change an invertors mind. Furthermore if an investor knowingly or unknowingly breaks one of the many rules they could be audited by the
IRS and if caught the entire IRA becomes immediately taxable as ordinary income. The most important rule is that the investor must keep his personal
funds separate from their IRA funds. Most professionals agree it is important to consult an attorney and a CPA to facilitate the creation of a
self–directed IRA. For the investors who fell the risk of an IRS audit is too great and are looking for more protection of their other assets, if they find
themselves involved in a lawsuit, the formation of a Limited Liability Company (LLC) might be a better option. The existence of LLC's didn't occur
until 1977 as author John Balouziyeh explains here:
Corporations and partnerships have traditionally served as the forms of organization from which business owners could choose. Recently, state statutes
have begun to recognize a new form of business organization, the limited liability company (LLC). First recognized by state statute in 1977, the LLC
is a hybrid

Flat Tax Reform
There is an issue that has plagued the United States even prior to the founding of the nation. That issue is fair taxation. While the American Colonists
were being taxed unfairly without parliamentary representation, average modern Americans are being taxed unfairly without legal representation. Some
believe that the progressive tax code employed by the United States is fair as the wealthy pay a higher marginal tax rate. The operative word there
being marginal. As the upper class typically have a much lower effective tax rate since they are able to afford tax attorneys who are able to find
many deductions that average citizens are unaware of. Mitt Romney is a prime example of low effective rates of taxation. According to CNN Money,
Mitt Romney ... Show more content on Helpwriting.net ...
These range from an increase in labor supply to faster economic growth. Dr. Andreas Peichl wrote an article detailing the expected results of a flat
tax system. He based his expectations upon the various countries that currently employ such a system. The increase in labor supply can be
explained by following the economic law of supply, which states that the supply of a good will increase as the price increases. Thus, as taxes are
lowered and families are able to bring home more income, more people are willing to search for work. By stimulating the job market, the economy as
a whole will be stimulated, as more families will have greater expendable incomes. Another effect that a simpler tax code will have is that more
Americans will be able to reap the full benefits of the tax code. By eliminating itemized deductions taxation becomes more equal. In a chart published
by the Tax Foundation, of those making less than fifty–thousand dollars, only eighteen percent made use of itemized deductions. By simplifying the tax
code the rate of compliance would increase.This is caused by the shrinking of the tax code from seventy–thousand pages down to at most ten. In
addition to raising compliance, by simplifying the tax code, it becomes a more equal system of taxation, as each would pay the same marginal rate,
however, due to the generous exemption there would be an inconsistency between the marginal and

The Taxation Of South Africa
Just as an egg will vary from hen to hen, so do tax systems from country to country. Each country has its own rules and principles to levy taxes from
its citizens and foreigners to whom it conducts business in order to support its operations. South Africa is no different. When a country's own people
conduct business, or foreigners invest or trade within its domestic jurisdiction, it is necessary for the tax system to balance carefully its domestic and
international economic objectives. It is essential to understand how the taxation system is applied to residents and non–residents in order to maximize
one's own benefits through adequate tax planning. In South Africa, the law determines the tax system through which the Commissioner must oversee
/enforce. Among all the tax acts, the Customs Act 91 of 1964, The Income tax Act 58 of 1962, and the VAT Act 89 of 1991 are the most important
ones. South Africa employs a residence–based system. This means that, except for certain exclusions; residents are being taxed on their worldwide
income regardless of where their income was earned. In other words, a resident of a particular country will be subject to the taxes of that country.
Where as in the United States, all citizens, even if they are not a resident, may be subject to their worldwide income. South Africa has not always
employed a residence–based system. Before 2011, a source–based system was being used. Income is taxed in the country where that income originates,

Homework Es Week2
1. Question: (TCOs 1, 2, and 3) Ted is the sole shareholder of a C corporation, and Sue owns a sole proprietorship. Both businesses were started in
2010, and each business sustained a $5,000 net capital loss for the year. Which of the following statements is correct? Your Answer: Ted's
corporation can deduct the $5,000 capital loss in 2010.Ted's corporation can deduct $3,000 of the capital loss in 2010.Sue can carry the capital loss
back three years and forward five years.Sue can deduct the $5,000 capital loss against ordinary income in 2010.None of the above.CORRECT
Instructor Explanation: E. A corporation cannot deduct a net capital loss in the... Show more content on Helpwriting.net ...
Presuming adequate income, how much of these losses may Kim claim? Your Answer: $0.$1,000.$2,000.CORRECT ANSWER $3,000.INCORRECT
None of the above.Instructor Explanation: C. The loss on the business auto of $1,000 is an ordinary loss, while the loss on the stock investment of
$1,000 is a capital loss. The loss on the yacht of $1,000 is personal and, therefore, cannot be deducted. Page 4–30 and Example 45. Points Received: 0
of 5 6. Question: (TCOs 4 and 5) Which of the following is deductible as a trade or business expense? Your Answer: A city coroner contributes to the
mayor's reelection campaign fund.Illegal bribes and kickbacks.Two–thirds of treble damage payments.INCORRECT Fines and penalties.None of the
above.CORRECT ANSWER Instructor Explanation: E. p 5–7, 5–8 Points Received: 0 of 5 7. Question: (TCOs 4 and 5) Which of the following
statements is correct in connection with the investigation of a business? Your Answer: If the taxpayer is not already engaged in the trade or business,
the expenses incurred are deductible if the project is abandoned.If the business is acquired, the expenses may be deducted immediately by a taxpayer
engaged in a

The Progressive Tax System Of The United States Essay
There is an issue that has plagued the United States even prior to the founding of the nation. That issue is fair taxation. While the American Colonists
were being taxed unfairly without parliamentary representation, average modern Americans are being taxed unfairly without legal representation. Some
hold the belief that the progressive tax code employed by the United States to be fair as the wealthy pay a higher marginal tax rate. The operative
word there being marginal. As the upper class typically has a much lower effective tax rate since they are able to afford tax attorneys who are able to
find many deductions that average citizens are unaware of. Mitt Romney is a prime example of low effective rates of taxation. According to CNN
Money, Mitt Romney made twenty–one million dollars in one year, but only paid an effective rate of fifteen percent, which is much lower than the
rate he should be paying. The progressive tax system is one that is littered with loopholes, but those are only known to those with the means to search
them out as the federal tax code spans seventy–thousand of pages of convoluted text. Not even the highest paid tax accountants will ever read
anywhere near the full volume of tax laws. By the tax code being as long as it is, few are able to reap the full benefits of the tax code. The level of
complicated text is not the only major issue with the federal tax code. Another issue with the tax code of the United States is the inability to separate

Purchase Price Per Cents Per Share
When the margin is 25%
Number of share 100
Purchase price10per share
Margin required:25%50%75%
Increasing Price is56.25Amount of profit:750
Margin required250
Percent return:300 %Amount of profit:750
Margin required500
Percent return:150 %Amount of profit:750
Margin required750
Percent return:100 %When the margin is 25%
Number of share 100
Purchase price10per share
Margin required:25%50%75%
Increasing Price is–6.25Amount of profit:250
Margin required250
Amount of profit:250
Margin required500
Amount of profit:250
Margin required ... Show more content on Helpwriting.net ...
Total value of stick =number of share x Price per share
Margin required: $2,100
Borrowed funds:$1,400
Interest on borrowed funds: 112 %
Proceeds of sale is $4,000

Amount of profit:$500
Purchase price:$3,500
Percents earnted by investor A:14.29 %
Total interest of the investment:1000
After 20Year
With 4 %Future value =$2,191.12
Interest received at the end 20 year:$1,191.12 Amount=1,000
Rate=4%
Time=20YearInterest rate=$800 In a simple interest rate the saver only earns interest on the principal amount, so the compound interest rate is higher
than the simple interest rate.The saver wants:100,000
Interest rate8%
Present value is=$46,319 PMT=$6,903
Interest factor:7.2468
PMT:$6,391.70 If the expect yiels 5%
The precent value will be $61,391.33 PMT=$7,950.18
Interest factor:8.1081
PMT:$7,571.60 Student expect earn:$45,000
Inflation rate:2%
Future value:$66,868 The future value with inflation rate:4%
Future value:$98,601 PMT=$2,000 i= 7%n= 100FVAIF43.87
FSAD=$87,730.35 PMT=$2,000 i= 10%n= 20
FVAIF63.00
FSAD=$126,005.0
Money to save of the account:$38,274.65 Future value after

Fringe Benefit Tax Assessment Act 1986
Mary is a marketing consultant at Elite Retail and has been offered various fringe benefits by her employer. Mary and her employer were worried
about the tax consequences of the respective benefits and how it could be addressed in income tax return.
(a)Tax Implications on Relocation Cost
The employer of Mary paid her $4,000 for the transfer of furniture for her recent relocation at Brisbane. The amount is an exempt benefit for Mary
because section 61B, Div 13 of Fringe Benefit Tax Assessment Act 1986 concludes relocation expense as an exempt benefit provided relocation is
important for the performance of her job responsibilities (ATO, 2004).
(b)Tax Implications on Miscellaneous Items
Mary has received an entertainment allowance of $5,000 ... Show more content on Helpwriting.net ...
It will give a taxable value of $11,765 ($6,000 x 1.9608) and FBT Liability as $5,765 ($11,765 x 49%).
(e)Tax implications on Loan
The employer of Mary has also provided her a loan of $500,000 at a reduced rate of only 4%. When an employer grants a loan to an employee at a
rate lower than market rate then section 16, Division 4 of Fringe Benefit Tax Assessment Act 1986 requires to pay tax on loan fringe benefit at the
difference of benchmark rate and payment rate. In accordance with Australian Tax Office (ATO), the current benchmark rate is 5.45% (Deloitte, 2016).
The taxable value will be gross–up by Type 2 benefit rate of 1.9608 because we assume that the employer is not obliged to get a refund on this amount.
It will give a taxable value of $14,216 ($7,250 x 1.9608) and when this amount is charged by current tax rate of 49% then it will give FBT Liability of
$6,966 ($14,216 x 49%).
Question 2– Executive

Benefits Of Tax Free Investments
In the world of investing, many investors use different investment vehicles to reach their financial goals. Investment vehicles are specific investment
products that investors use to with objectives of having positive returns on their investment. Due to the taxation structure in the United States investors
must do their due diligence about investments to see which vehicle fits their specific needs. The reason for having to do due diligence because there are
many different investments, but there are only three taxation structures which are tax free, tax deferred, and taxed. Tax free investments are investment
vehicles that an investor does not have to pay any taxes on. An investment that is tax deferred is an investment that has earnings, ... Show more content
on Helpwriting.net ...
When you buy a municipal security, you are loaning cash to a state or local government, which thus guarantees to pay you a predetermined measure of
premium and return the initial investment to you on a particular date which is called maturity.
All in all, the interest you acquire from municipal tax exempt bonds is excluded from income tax if a person is a local and a state resident. Municipal
bonds are normally lower than those offered by likewise corporate securities, the way that intrigue wage is without expense can bring about the yields
being equivalent, or significantly higher sometimes. Furthermore, on the off chance that you buy unique issue discount bonds and hold them until their
maturity date, those ventures may get uncommon expense treatment under fed income tax law. In these cases, the contrast between thebond discount
price and its par value would be considered expense excluded salary instead of capital increases. Because of the potential assessment advantage,
financial specialists commonly acknowledge lower yields from municipal bonds than they would from comparative assessable securities. On account
of this yield differential, a person 's tax bracket status plays a central point in the allure of expense free speculations. While municipal bonds could be
an advantage any investor. Municipal bonds often attracted to investors who are in high tax brackets or locations where taxes are high such as

Introduction to Capital Gains and Losses
1. Introduction to Capital Gains and Losses
Nearly everything that you own, whether it is for investment purposes or personal use, is a capital asset. Capital assets are stocks or bonds held for
investment purposes, land, machinery, etc. When an individual sells a capital asset, the difference between the asset's purchase price and the amount
that it is sold for, is either a capital gain, which is in the case if the selling price exceeds the purchase price, or a capital loss, where the purchase price
exceeds the selling price.
When the value of the capital asset increases beyond the price that it was initially purchased for, that is a capital gain. The gain is not realized
immediately, because the holder of the asset has not sold it. Once the individual sells the capital asset, at that point, the individual must realize the gain
and must claim it on income taxes. (http://www.investopedia.com/terms/c/capitalgain.asp).
Capital gains and losses are categorized into two categories: long–term and short–term. If the asset is held for one year or more before the disposition
of the asset, the capital gain or loss is considered a long–term. If the asset is held for less than one year prior to the disposition, the capital gain or loss
is considered short–term. (http://www.irs.gov/taxtopics/tc409.html).
2. How Capital Gains are taxed: Holding Period
The taxation of capital gains is treated differently depending on whether your investment is considered long–term or short–term. The

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