Chap.1-2.TaxEnvironment - Federal Income Taxation CHAPTERS...

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Federal Income Taxation TAX ENVIRONMENT I. Types of U.S. Taxes A. Assessed by all three levels of government in U.S. B. Types 1. Assessed on income - persons (individuals), corps, trusts, estates 2. Asessed on specific types of income - employment taxes. 3. Property - Real estate & personal property tax 4. Transaction based taxes a. sales & excise taxes b. wealth transfer: gifts & inheritances c. custom duties (tariffs on imported goods) II. Tax = Base x Rate Under the federal income tax, base = taxable income; rate varies according III. Taxable entities under the income tax A. Individuals Citizens and residents of the US are taxed on their world-wide income. Foreigners (specifically, nonresident aliens) are taxed on the income that is earned in the US B. Corporations - taxed on taxable income C. Trusts & estates
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A trust is created when property is transferred to a trustee who has the responsibility to preserve or protect the property for the benefit of other parties. Estate of deceased persons: when a person dies, property owned at the time of death is transferred to the deceased's estate until it is distributed to the heirs. IV. Brief
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This note was uploaded on 05/19/2008 for the course ACCT 3531 taught by Professor Ryan during the Spring '08 term at Temple.

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Chap.1-2.TaxEnvironment - Federal Income Taxation CHAPTERS...

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