SlideShare uma empresa Scribd logo
1 de 42
Baixar para ler offline
Income Tax Fundamentals  2010 edition  Gerald E. Whittenburg  Martha Altus-Buller 2010 Cengage Learning
[object Object],[object Object],[object Object],[object Object],2009 Cengage Learning
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],2009 Cengage Learning
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],2009 Cengage Learning
[object Object],[object Object],2009 Cengage Learning
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],2009 Cengage Learning
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],2009 Cengage Learning
[object Object],[object Object],[object Object],2009 Cengage Learning Regular tax bracket Qualifying Dividend Rate 2008-2010 10%, 15% 0% Higher brackets 15%
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],2009 Cengage Learning
[object Object],[object Object],[object Object],[object Object],2009 Cengage Learning
[object Object],[object Object],2009 Cengage Learning
[object Object],[object Object],[object Object],[object Object],2009 Cengage Learning
[object Object],[object Object],[object Object],2009 Cengage Learning
[object Object],[object Object],[object Object],2009 Cengage Learning
[object Object],[object Object],2009 Cengage Learning
[object Object],[object Object],[object Object],[object Object],2009 Cengage Learning
[object Object],[object Object],[object Object],[object Object],[object Object],2009 Cengage Learning
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],2009 Cengage Learning
2009 Cengage Learning Example Din has saved $750,000 in his retirement account and uses it to purchase an annuity.  His annuity equals $4,800/month and the IRS tables show he is expected to live 19 years.  How much is excludable each year of retirement? Assume that Din is required to use the general rule.
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],2009 Cengage Learning
[object Object],[object Object],[object Object],2009 Cengage Learning
[object Object],[object Object],[object Object],2009 Cengage Learning
[object Object],[object Object],[object Object],[object Object],[object Object],2009 Cengage Learning
[object Object],[object Object],[object Object],2009 Cengage Learning
[object Object],[object Object],[object Object],[object Object],2009 Cengage Learning
[object Object],[object Object],[object Object],[object Object],[object Object],2009 Cengage Learning
[object Object],[object Object],[object Object],[object Object],[object Object],2009 Cengage Learning
[object Object],[object Object],[object Object],2009 Cengage Learning
[object Object],[object Object],[object Object],[object Object],2009 Cengage Learning
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],2009 Cengage Learning
[object Object],[object Object],[object Object],[object Object],2009 Cengage Learning
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],2009 Cengage Learning
[object Object],[object Object],[object Object],2009 Cengage Learning
[object Object],[object Object],[object Object],2009 Cengage Learning
[object Object],[object Object],2009 Cengage Learning
[object Object],[object Object],[object Object],[object Object],[object Object],2009 Cengage Learning
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],2009 Cengage Learning
2009 Cengage Learning If (MAGI + (50%)(SS benefits)) exceeds base amount as follows: Base Amount   Filing Status   $32,000  MFJ $  0  MFS $25,000  All others … then, the taxable amount is calculated by completing the Simplified Taxable Social Security Worksheet
[object Object],[object Object],[object Object],2009 Cengage Learning
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],2009 Cengage Learning
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],2009 Cengage Learning
2009 Cengage Learning

Mais conteúdo relacionado

Mais procurados

How to use your personal allowance
How to use your personal allowanceHow to use your personal allowance
How to use your personal allowancesaeed1234s
 
Saving With A Tax Advantage - May 2012 - Active Business Series
Saving With A Tax Advantage - May 2012 - Active Business SeriesSaving With A Tax Advantage - May 2012 - Active Business Series
Saving With A Tax Advantage - May 2012 - Active Business Seriesnevillebeckhurst
 
Asm tax efficient profit extraction
Asm   tax efficient profit extractionAsm   tax efficient profit extraction
Asm tax efficient profit extractionBrian Clerkin
 
Choosing A Retirement Plan For Your Business427503 Cv
Choosing A Retirement Plan For Your Business427503 CvChoosing A Retirement Plan For Your Business427503 Cv
Choosing A Retirement Plan For Your Business427503 CvShane Riley
 
Homeownership And Your Taxes
Homeownership And Your TaxesHomeownership And Your Taxes
Homeownership And Your Taxesicsarmiento
 
Minimising Your Personal Tax Liability - November 2012
Minimising Your Personal Tax Liability - November 2012Minimising Your Personal Tax Liability - November 2012
Minimising Your Personal Tax Liability - November 2012nevillebeckhurst
 
Afford Bond March 10 2011
Afford Bond March 10 2011Afford Bond March 10 2011
Afford Bond March 10 2011laurahutchinson
 
Afford Bond March 10 2011
Afford Bond March 10 2011Afford Bond March 10 2011
Afford Bond March 10 2011laurahutchinson
 
IRS Releases 2021 Filing Season Tax Brackets
IRS Releases 2021 Filing Season Tax BracketsIRS Releases 2021 Filing Season Tax Brackets
IRS Releases 2021 Filing Season Tax BracketsTodd Mardis
 
Albidress, Adrian Key Financial Data 2014-publication
Albidress, Adrian Key Financial Data 2014-publicationAlbidress, Adrian Key Financial Data 2014-publication
Albidress, Adrian Key Financial Data 2014-publicationAdrian Albidress Jr, CPA
 
2010 Estate Planning Update
2010 Estate Planning Update2010 Estate Planning Update
2010 Estate Planning Updatefsgeneva
 
Concepts of taxation
Concepts of taxation Concepts of taxation
Concepts of taxation sarahobaidee
 

Mais procurados (20)

Bftu 03 all clw 112703
Bftu 03 all clw 112703Bftu 03 all clw 112703
Bftu 03 all clw 112703
 
Chapter 1
Chapter 1Chapter 1
Chapter 1
 
How to use your personal allowance
How to use your personal allowanceHow to use your personal allowance
How to use your personal allowance
 
Saving With A Tax Advantage - May 2012 - Active Business Series
Saving With A Tax Advantage - May 2012 - Active Business SeriesSaving With A Tax Advantage - May 2012 - Active Business Series
Saving With A Tax Advantage - May 2012 - Active Business Series
 
Asm tax efficient profit extraction
Asm   tax efficient profit extractionAsm   tax efficient profit extraction
Asm tax efficient profit extraction
 
Choosing A Retirement Plan For Your Business427503 Cv
Choosing A Retirement Plan For Your Business427503 CvChoosing A Retirement Plan For Your Business427503 Cv
Choosing A Retirement Plan For Your Business427503 Cv
 
rdsp brochure
rdsp brochurerdsp brochure
rdsp brochure
 
Homeownership And Your Taxes
Homeownership And Your TaxesHomeownership And Your Taxes
Homeownership And Your Taxes
 
Minimising Your Personal Tax Liability - November 2012
Minimising Your Personal Tax Liability - November 2012Minimising Your Personal Tax Liability - November 2012
Minimising Your Personal Tax Liability - November 2012
 
College Needs Planning 2012
College Needs Planning 2012College Needs Planning 2012
College Needs Planning 2012
 
Using family trusts to income split
Using family trusts to income splitUsing family trusts to income split
Using family trusts to income split
 
Wealth Management Services for Health Care Professionals
Wealth Management Services for Health Care ProfessionalsWealth Management Services for Health Care Professionals
Wealth Management Services for Health Care Professionals
 
Afford Bond March 10 2011
Afford Bond March 10 2011Afford Bond March 10 2011
Afford Bond March 10 2011
 
2013 Budget Summary from Hayward Wright
2013 Budget Summary from Hayward Wright2013 Budget Summary from Hayward Wright
2013 Budget Summary from Hayward Wright
 
Afford Bond March 10 2011
Afford Bond March 10 2011Afford Bond March 10 2011
Afford Bond March 10 2011
 
IRS Releases 2021 Filing Season Tax Brackets
IRS Releases 2021 Filing Season Tax BracketsIRS Releases 2021 Filing Season Tax Brackets
IRS Releases 2021 Filing Season Tax Brackets
 
Albidress, Adrian Key Financial Data 2014-publication
Albidress, Adrian Key Financial Data 2014-publicationAlbidress, Adrian Key Financial Data 2014-publication
Albidress, Adrian Key Financial Data 2014-publication
 
2010 Estate Planning Update
2010 Estate Planning Update2010 Estate Planning Update
2010 Estate Planning Update
 
Chapter 3
Chapter 3Chapter 3
Chapter 3
 
Concepts of taxation
Concepts of taxation Concepts of taxation
Concepts of taxation
 

Destaque

Income Taxation - Answer key (6th Edition by Valencia)- Chapter 2
Income Taxation - Answer key (6th Edition by Valencia)- Chapter 2Income Taxation - Answer key (6th Edition by Valencia)- Chapter 2
Income Taxation - Answer key (6th Edition by Valencia)- Chapter 2Magnolia Raz
 
OSCAR & AppHub, fostering market readiness at OW2, OW2con'16, Paris.
OSCAR & AppHub, fostering market readiness at OW2, OW2con'16, Paris. OSCAR & AppHub, fostering market readiness at OW2, OW2con'16, Paris.
OSCAR & AppHub, fostering market readiness at OW2, OW2con'16, Paris. OW2
 
Sofa2 Q-im ress-ow2-conference-nov10
Sofa2 Q-im ress-ow2-conference-nov10Sofa2 Q-im ress-ow2-conference-nov10
Sofa2 Q-im ress-ow2-conference-nov10OW2
 
Qualipso Open Maturity Model OW2 Conference Nov10
Qualipso Open Maturity Model OW2 Conference Nov10Qualipso Open Maturity Model OW2 Conference Nov10
Qualipso Open Maturity Model OW2 Conference Nov10OW2
 
カマコンバレー @YOKOHAMA Future Session 150421
カマコンバレー @YOKOHAMA Future Session 150421カマコンバレー @YOKOHAMA Future Session 150421
カマコンバレー @YOKOHAMA Future Session 150421Kanshin!, Inc.
 
Ow2 Jonas Use Case Ministere Interieur Open World Forum
Ow2 Jonas Use Case Ministere Interieur Open World ForumOw2 Jonas Use Case Ministere Interieur Open World Forum
Ow2 Jonas Use Case Ministere Interieur Open World ForumOW2
 
OW2con'14 - XLcloud, a demonstation of 3D remote rendering in the cloud
OW2con'14 - XLcloud, a demonstation of 3D remote rendering in the cloudOW2con'14 - XLcloud, a demonstation of 3D remote rendering in the cloud
OW2con'14 - XLcloud, a demonstation of 3D remote rendering in the cloudOW2
 
RGAA, REFERENTIEL D’ACCESSIBILITE MULTICANAL
RGAA, REFERENTIEL D’ACCESSIBILITE MULTICANAL RGAA, REFERENTIEL D’ACCESSIBILITE MULTICANAL
RGAA, REFERENTIEL D’ACCESSIBILITE MULTICANAL OW2
 
Amsterdam Data Portal
Amsterdam Data Portal Amsterdam Data Portal
Amsterdam Data Portal OW2
 
Blended learning project
Blended learning projectBlended learning project
Blended learning projectwall530
 
Music in the Metaverse
Music in the MetaverseMusic in the Metaverse
Music in the MetaverseRichard Elen
 
Logic Circuit Project Final Presentation
Logic Circuit Project Final PresentationLogic Circuit Project Final Presentation
Logic Circuit Project Final PresentationMatthew Chang
 
197x 20090704 Scalaで並行プログラミング
197x 20090704 Scalaで並行プログラミング197x 20090704 Scalaで並行プログラミング
197x 20090704 Scalaで並行プログラミングNet Penguin
 
Presentation Team NGX
Presentation Team NGXPresentation Team NGX
Presentation Team NGXMatthew Chang
 
Oscar - The OW2 Quality Program - Cloud Computing World Expo 2016
Oscar - The OW2 Quality Program - Cloud Computing World Expo 2016Oscar - The OW2 Quality Program - Cloud Computing World Expo 2016
Oscar - The OW2 Quality Program - Cloud Computing World Expo 2016OW2
 
Dev 2.0 @ OW2: from forge to distributed developer's services, OW2con'12, Paris
Dev 2.0 @ OW2: from forge to distributed developer's services, OW2con'12, ParisDev 2.0 @ OW2: from forge to distributed developer's services, OW2con'12, Paris
Dev 2.0 @ OW2: from forge to distributed developer's services, OW2con'12, ParisOW2
 
Ow2 Today Solution Linux2010
Ow2 Today Solution Linux2010Ow2 Today Solution Linux2010
Ow2 Today Solution Linux2010OW2
 
2013 cch basic principles ch12
2013 cch basic principles ch122013 cch basic principles ch12
2013 cch basic principles ch12dphil002
 

Destaque (20)

Income Taxation - Answer key (6th Edition by Valencia)- Chapter 2
Income Taxation - Answer key (6th Edition by Valencia)- Chapter 2Income Taxation - Answer key (6th Edition by Valencia)- Chapter 2
Income Taxation - Answer key (6th Edition by Valencia)- Chapter 2
 
OSCAR & AppHub, fostering market readiness at OW2, OW2con'16, Paris.
OSCAR & AppHub, fostering market readiness at OW2, OW2con'16, Paris. OSCAR & AppHub, fostering market readiness at OW2, OW2con'16, Paris.
OSCAR & AppHub, fostering market readiness at OW2, OW2con'16, Paris.
 
Sofa2 Q-im ress-ow2-conference-nov10
Sofa2 Q-im ress-ow2-conference-nov10Sofa2 Q-im ress-ow2-conference-nov10
Sofa2 Q-im ress-ow2-conference-nov10
 
Qualipso Open Maturity Model OW2 Conference Nov10
Qualipso Open Maturity Model OW2 Conference Nov10Qualipso Open Maturity Model OW2 Conference Nov10
Qualipso Open Maturity Model OW2 Conference Nov10
 
カマコンバレー @YOKOHAMA Future Session 150421
カマコンバレー @YOKOHAMA Future Session 150421カマコンバレー @YOKOHAMA Future Session 150421
カマコンバレー @YOKOHAMA Future Session 150421
 
Pj tahun 3
Pj tahun 3Pj tahun 3
Pj tahun 3
 
Sergio mejia a.
Sergio mejia a.Sergio mejia a.
Sergio mejia a.
 
Ow2 Jonas Use Case Ministere Interieur Open World Forum
Ow2 Jonas Use Case Ministere Interieur Open World ForumOw2 Jonas Use Case Ministere Interieur Open World Forum
Ow2 Jonas Use Case Ministere Interieur Open World Forum
 
OW2con'14 - XLcloud, a demonstation of 3D remote rendering in the cloud
OW2con'14 - XLcloud, a demonstation of 3D remote rendering in the cloudOW2con'14 - XLcloud, a demonstation of 3D remote rendering in the cloud
OW2con'14 - XLcloud, a demonstation of 3D remote rendering in the cloud
 
RGAA, REFERENTIEL D’ACCESSIBILITE MULTICANAL
RGAA, REFERENTIEL D’ACCESSIBILITE MULTICANAL RGAA, REFERENTIEL D’ACCESSIBILITE MULTICANAL
RGAA, REFERENTIEL D’ACCESSIBILITE MULTICANAL
 
Amsterdam Data Portal
Amsterdam Data Portal Amsterdam Data Portal
Amsterdam Data Portal
 
Blended learning project
Blended learning projectBlended learning project
Blended learning project
 
Music in the Metaverse
Music in the MetaverseMusic in the Metaverse
Music in the Metaverse
 
Logic Circuit Project Final Presentation
Logic Circuit Project Final PresentationLogic Circuit Project Final Presentation
Logic Circuit Project Final Presentation
 
197x 20090704 Scalaで並行プログラミング
197x 20090704 Scalaで並行プログラミング197x 20090704 Scalaで並行プログラミング
197x 20090704 Scalaで並行プログラミング
 
Presentation Team NGX
Presentation Team NGXPresentation Team NGX
Presentation Team NGX
 
Oscar - The OW2 Quality Program - Cloud Computing World Expo 2016
Oscar - The OW2 Quality Program - Cloud Computing World Expo 2016Oscar - The OW2 Quality Program - Cloud Computing World Expo 2016
Oscar - The OW2 Quality Program - Cloud Computing World Expo 2016
 
Dev 2.0 @ OW2: from forge to distributed developer's services, OW2con'12, Paris
Dev 2.0 @ OW2: from forge to distributed developer's services, OW2con'12, ParisDev 2.0 @ OW2: from forge to distributed developer's services, OW2con'12, Paris
Dev 2.0 @ OW2: from forge to distributed developer's services, OW2con'12, Paris
 
Ow2 Today Solution Linux2010
Ow2 Today Solution Linux2010Ow2 Today Solution Linux2010
Ow2 Today Solution Linux2010
 
2013 cch basic principles ch12
2013 cch basic principles ch122013 cch basic principles ch12
2013 cch basic principles ch12
 

Semelhante a Chapter 2

Chapter 2 power point
Chapter 2 power pointChapter 2 power point
Chapter 2 power pointdphil002
 
Chapter 11
Chapter 11Chapter 11
Chapter 11dphil002
 
ACC 221 Tax Accounting Ch 1
ACC 221 Tax Accounting Ch 1ACC 221 Tax Accounting Ch 1
ACC 221 Tax Accounting Ch 1Angela Cipriano
 
Corporate asset transfer
Corporate asset transferCorporate asset transfer
Corporate asset transferTom MacLellan
 
Horner Downey & Co Newsletter
Horner Downey & Co NewsletterHorner Downey & Co Newsletter
Horner Downey & Co NewsletterJenny Ferguson
 
ACCT321 Chapter 05
ACCT321 Chapter 05ACCT321 Chapter 05
ACCT321 Chapter 05iDocs
 
Top 5 strategies to keep your profits in your pocket
Top 5 strategies to keep your profits in your pocketTop 5 strategies to keep your profits in your pocket
Top 5 strategies to keep your profits in your pocketTim Miron
 
Retirement Choices
Retirement ChoicesRetirement Choices
Retirement Choicesmichnoel
 
Tax Efficent Investing
Tax Efficent InvestingTax Efficent Investing
Tax Efficent InvestingLawrence Cole
 
Chapter 11
Chapter 11Chapter 11
Chapter 11dphil002
 
Brighten Your Future, with Tax Tips and Retirement Planning
Brighten Your Future, with Tax Tips and Retirement PlanningBrighten Your Future, with Tax Tips and Retirement Planning
Brighten Your Future, with Tax Tips and Retirement PlanningStambaugh Ness, PC
 
Itf ipp ch05_2012_final
Itf ipp ch05_2012_finalItf ipp ch05_2012_final
Itf ipp ch05_2012_finaldphil002
 
Itf ipp ch10_2012_final
Itf ipp ch10_2012_finalItf ipp ch10_2012_final
Itf ipp ch10_2012_finaldphil002
 
Itf ipp ch01_2012_final
Itf ipp ch01_2012_finalItf ipp ch01_2012_final
Itf ipp ch01_2012_finaldphil002
 
Concepts in Federal Income Taxation
Concepts in Federal Income TaxationConcepts in Federal Income Taxation
Concepts in Federal Income TaxationSusan Edwards Colson
 
Chapter 11 power point
Chapter 11 power pointChapter 11 power point
Chapter 11 power pointdphil002
 

Semelhante a Chapter 2 (20)

Chapter 2 power point
Chapter 2 power pointChapter 2 power point
Chapter 2 power point
 
Chapter 5
Chapter 5Chapter 5
Chapter 5
 
Chapter 11
Chapter 11Chapter 11
Chapter 11
 
ACC 221 Tax Accounting Ch 1
ACC 221 Tax Accounting Ch 1ACC 221 Tax Accounting Ch 1
ACC 221 Tax Accounting Ch 1
 
Corporate asset transfer
Corporate asset transferCorporate asset transfer
Corporate asset transfer
 
Horner Downey & Co Newsletter
Horner Downey & Co NewsletterHorner Downey & Co Newsletter
Horner Downey & Co Newsletter
 
ACCT321 Chapter 05
ACCT321 Chapter 05ACCT321 Chapter 05
ACCT321 Chapter 05
 
Top 5 strategies to keep your profits in your pocket
Top 5 strategies to keep your profits in your pocketTop 5 strategies to keep your profits in your pocket
Top 5 strategies to keep your profits in your pocket
 
Retirement Choices
Retirement ChoicesRetirement Choices
Retirement Choices
 
Chapter 1
Chapter 1Chapter 1
Chapter 1
 
Tax Efficent Investing
Tax Efficent InvestingTax Efficent Investing
Tax Efficent Investing
 
Chapter 11
Chapter 11Chapter 11
Chapter 11
 
Brighten Your Future, with Tax Tips and Retirement Planning
Brighten Your Future, with Tax Tips and Retirement PlanningBrighten Your Future, with Tax Tips and Retirement Planning
Brighten Your Future, with Tax Tips and Retirement Planning
 
Itf ipp ch05_2012_final
Itf ipp ch05_2012_finalItf ipp ch05_2012_final
Itf ipp ch05_2012_final
 
Chapter 6
Chapter 6Chapter 6
Chapter 6
 
Year End Tax Planning
Year End Tax PlanningYear End Tax Planning
Year End Tax Planning
 
Itf ipp ch10_2012_final
Itf ipp ch10_2012_finalItf ipp ch10_2012_final
Itf ipp ch10_2012_final
 
Itf ipp ch01_2012_final
Itf ipp ch01_2012_finalItf ipp ch01_2012_final
Itf ipp ch01_2012_final
 
Concepts in Federal Income Taxation
Concepts in Federal Income TaxationConcepts in Federal Income Taxation
Concepts in Federal Income Taxation
 
Chapter 11 power point
Chapter 11 power pointChapter 11 power point
Chapter 11 power point
 

Mais de dphil002

Representation techniques july 16, 2014
Representation techniques july 16, 2014Representation techniques july 16, 2014
Representation techniques july 16, 2014dphil002
 
P pt ch 10
P pt ch 10P pt ch 10
P pt ch 10dphil002
 
P pt ch 08
P pt ch 08P pt ch 08
P pt ch 08dphil002
 
P pt ch 07
P pt ch 07P pt ch 07
P pt ch 07dphil002
 
P pt ch 06
P pt ch 06P pt ch 06
P pt ch 06dphil002
 
P pt ch 05
P pt ch 05P pt ch 05
P pt ch 05dphil002
 
P pt ch 04
P pt ch 04P pt ch 04
P pt ch 04dphil002
 
P pt ch 03
P pt ch 03P pt ch 03
P pt ch 03dphil002
 
P pt ch 02
P pt ch 02P pt ch 02
P pt ch 02dphil002
 
P pt ch 01
P pt ch 01P pt ch 01
P pt ch 01dphil002
 

Mais de dphil002 (20)

Representation techniques july 16, 2014
Representation techniques july 16, 2014Representation techniques july 16, 2014
Representation techniques july 16, 2014
 
Ppt ch 20
Ppt ch 20Ppt ch 20
Ppt ch 20
 
Ppt ch 19
Ppt ch 19Ppt ch 19
Ppt ch 19
 
Ppt ch 18
Ppt ch 18Ppt ch 18
Ppt ch 18
 
Ppt ch 17
Ppt ch 17Ppt ch 17
Ppt ch 17
 
Ppt ch 16
Ppt ch 16Ppt ch 16
Ppt ch 16
 
Ppt ch 14
Ppt ch 14Ppt ch 14
Ppt ch 14
 
Ppt ch 13
Ppt ch 13Ppt ch 13
Ppt ch 13
 
Ppt ch 12
Ppt ch 12Ppt ch 12
Ppt ch 12
 
Ppt ch 11
Ppt ch 11Ppt ch 11
Ppt ch 11
 
P pt ch 10
P pt ch 10P pt ch 10
P pt ch 10
 
Ppt ch 09
Ppt ch 09Ppt ch 09
Ppt ch 09
 
P pt ch 08
P pt ch 08P pt ch 08
P pt ch 08
 
P pt ch 07
P pt ch 07P pt ch 07
P pt ch 07
 
P pt ch 06
P pt ch 06P pt ch 06
P pt ch 06
 
P pt ch 05
P pt ch 05P pt ch 05
P pt ch 05
 
P pt ch 04
P pt ch 04P pt ch 04
P pt ch 04
 
P pt ch 03
P pt ch 03P pt ch 03
P pt ch 03
 
P pt ch 02
P pt ch 02P pt ch 02
P pt ch 02
 
P pt ch 01
P pt ch 01P pt ch 01
P pt ch 01
 

Chapter 2

  • 1. Income Tax Fundamentals 2010 edition Gerald E. Whittenburg Martha Altus-Buller 2010 Cengage Learning
  • 2.
  • 3.
  • 4.
  • 5.
  • 6.
  • 7.
  • 8.
  • 9.
  • 10.
  • 11.
  • 12.
  • 13.
  • 14.
  • 15.
  • 16.
  • 17.
  • 18.
  • 19. 2009 Cengage Learning Example Din has saved $750,000 in his retirement account and uses it to purchase an annuity. His annuity equals $4,800/month and the IRS tables show he is expected to live 19 years. How much is excludable each year of retirement? Assume that Din is required to use the general rule.
  • 20.
  • 21.
  • 22.
  • 23.
  • 24.
  • 25.
  • 26.
  • 27.
  • 28.
  • 29.
  • 30.
  • 31.
  • 32.
  • 33.
  • 34.
  • 35.
  • 36.
  • 37.
  • 38. 2009 Cengage Learning If (MAGI + (50%)(SS benefits)) exceeds base amount as follows: Base Amount Filing Status $32,000 MFJ $ 0 MFS $25,000 All others … then, the taxable amount is calculated by completing the Simplified Taxable Social Security Worksheet
  • 39.
  • 40.
  • 41.

Notas do Editor

  1. Gross income is the initial point of tax computation. Gross income is composed of the following items: Compensation for services, including fees, commissions, fringe benefits, and similar items Gross income derived from business Gains derived from dealings in property Interest Rents Royalties Dividends Alimony and separate maintenance payments Annuities Income from life insurance and endowment contracts Pensions Income from discharge of indebtedness Distributive share of partnership gross income Income in respect of a decedent Income from an interest in an estate or trust The general rule is that anything a taxpayer received must be included in gross income unless specifically excluded. Noncash items should be reported at a fair market value.
  2. Interest and dividend income is part of gross income. If a taxpayer earns $1,500 or more in interest and dividends, the taxpayer must file a Schedule B with their return. Interest and dividends from cooperative banks, credit unions, domestic building and loan associations, domestic savings and loan associations, federal savings and loan associations and mutual savings banks are included. Savings bonds come in three different forms, Series EE, Series HH and Series I. Series EE bonds are issued at a discount. In other words, the bond sells for one value and is cashed in at a higher value. Series HH bonds are bonds that have interest paid semi-annually. Series I bonds do not pay interest until maturity, but earnings are adjusted for inflation on a semi-annual basis. Cash basis taxpayers report the increase in redemption value on a Series EE or Series I bond using one of the following methods: The interest may be reported in the year the bonds are cashed or in the year they mature, which ever is earlier, or The taxpayer may elect to report the increase in redemption value each year.
  3. Alimony payments are deductible by the individual making the payments and tax­able income to the person receiving the payments. The term "alimony," for income tax purposes, includes separate or periodic maintenance payments made to a spouse or former spouse. Payments must meet certain requirements to be considered alimony. Rules for divorces prior to 1985 were different than they are now so consult the tax rules for that time period if reference to those particular rules is needed. To qualify as alimony, payments must: … be in cash and be received by spouse. … be made under decree of divorce/separation or associated written agreement … cease upon the death of the spouse … not be designated as anything other than alimony in the written agreement … not be made to members of the same household … not be child support payments Alimony payments should not change based on age of children or other such circumstances. Such payments are not alimony. Alimony paid by high-income spouse to low-income spouse will result in tax savings to high-income spouse. Payments made for child support are neither deductible by the taxpayer making them nor are they income to the recipient. They may be an important factor in determining which spouse is entitled to claim the dependency exemption for the child. Child support payments must be up to date before any amount paid may be treated as alimony.
  4. (c)(1)Definition of "employee achievement award" An employee achievement award is an item of tangible personal property given to an employee for a length of service or safety achievement, but only if awarded as part of a meaningful presentation. The award cannot be compensation for services or even be presented under conditions and circumstances that create a significant likelihood that the payment is disguised compensation. Since only awards of tangible personal property are qualify under this definition, awards of cash, gift certificates, intangible property, tickets to theater and sporting events, vacations, and real property must be included in the employee's gross income. PRACTICE TIP: In order to prevent the IRS from claiming that the award is a form of disguised compensation taxable to the employee, the award should not be made when annual salary adjustments take place, as a substitute for a prior program of awarding cash bonuses, or in a manner that discriminates in favor of highly compensated employees. Furthermore, if the cost of the award to the employer is disproportionate to its fair market value (e.g., the award is made in the form of a television set that cost the employer $350, but has a fair market value of $900) the IRS may claim that the award is disguised compensation
  5. (c)(1)Definition of "employee achievement award" An employee achievement award is an item of tangible personal property given to an employee for a length of service or safety achievement, but only if awarded as part of a meaningful presentation. The award cannot be compensation for services or even be presented under conditions and circumstances that create a significant likelihood that the payment is disguised compensation. Since only awards of tangible personal property are qualify under this definition, awards of cash, gift certificates, intangible property, tickets to theater and sporting events, vacations, and real property must be included in the employee's gross income. PRACTICE TIP: In order to prevent the IRS from claiming that the award is a form of disguised compensation taxable to the employee, the award should not be made when annual salary adjustments take place, as a substitute for a prior program of awarding cash bonuses, or in a manner that discriminates in favor of highly compensated employees. Furthermore, if the cost of the award to the employer is disproportionate to its fair market value (e.g., the award is made in the form of a television set that cost the employer $350, but has a fair market value of $900) the IRS may claim that the award is disguised compensation
  6. An annuity is a series of payments under a contract that are made regularly for more than one full year. In general, annuity payments must be included in gross income as ordinary income. However, under Code Section 72 , taxpayers can exclude from income amounts that are considered to represent a return of premiums or other consideration paid for the annuity contract
  7. Amounts received as an annuity from qualified employee plans under Code Section 401(a), employee annuities under Code Section 403(a), and annuity contracts under Code Section 403(b), must generally use a simplified method to compute the taxable and tax-free portion of the distributions. However, the simplified method does not apply if the annuitant is over age 75 and there are five or more years of guaranteed payments under the annuity. Instead, the regular annuity rules apply.