Ch.3_Tax - Ch.3 Taxable Entities Taxable...

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Ch.3 Taxable Entities Taxable Entities-individual taxpayers .Citizens and residents of the U.S. - a tax is imposed on the taxable income of all individuals. Foreign citizens who are not merely visiting but stay for an extended period must worry about the need for filing. The tax would be levied on both their U.S. income and any foreign income. .Foreign Taxpayers- individuals who are not U.S. citizens and who do not qualify as residents may be subject to U.S. tax. Most other income earned in the United States is taxed at a flat rate of 30 percent. .Age- is not a factor in determining if he or she is a taxpaying entity. .Sole proprietorship- sole proprietorship is not a separate entity subject to tax. The sole proprietorship does not file its own tax return. The sole proprietorship serves as a conduit; any income it has flows through to the individual. .worldwide income- the federal income tax on individuals applies not only to domestic source income, but also to income from foreign sources. It is possible to have foreign source income taxed by more than one country. A U.S. citizen who works abroad may exclude from his or her U.S. income certain n amounts of income
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This note was uploaded on 06/18/2008 for the course ACCTG 321 taught by Professor Will during the Spring '08 term at San Diego State.

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Ch.3_Tax - Ch.3 Taxable Entities Taxable...

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