Study_Guide_test_1_acct_321[1]

Study_Guide_test_1_acct_321[1] - Study Guide Chapter 1, 3,...

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Unformatted text preview: Study Guide Chapter 1, 3, 4, and 5 The following topics you need to know: • Sales Tax Tax that covers a multitude of transactions. Only state. • Property Tax Correctly referred to as ad valorem taxes because they are based on value, property taxes are taxes on wealth. Two types: 1) Realty – real estate, capital improvements *used exclusively by states and local political subdivisions *realty generally includes fixtures *difficult to avoid 2) Personalty – boat, car, RV *defined as all assets that are not realty *can be classified as tangible or intangible • Gross Income inclusions Alimony Annuities (income element) Awards Backpay Bargain purchase from employer Bonuses Breach of contract damages Business income Clergy fees Commissions Compensation for services Death benefits Debts forgiven Director’s fees Dividends Embezzled funds Employee awards (in certain cases) Employee benefits (except certain fringe benefits) Estate and trust income farm income Fees Gains from illegal activities Gains from sale of property Gambling winnings Group term life insurance, premium paid by employer (for coverage over 50,000) See pg 3-4 for more • Gross Income Exclusions Accident insurance proceeds Annuities (cost element) Bequests Child support payments Cost-of-living allowance (for military) Damages for personal injury or sickness Gifts received Gropu term life insurance, premium paid by employer (coverage up to 50,000) Inheritances Interest from state and local bonds Life insurance paid on death Meals and lodging (if furnished for employer’s convenience) Military allowances Minister’s dwelling rental value allowance Railroad retirement benefits (to a limited extent) Scholarship grants (to a limited extent) Social security benefits (to a limited extent) Veterans’ benefits Welfare payments Workers’ compensation benefits • Standard Deduction amounts for 2007 and 2008 Filing Status Standard deduction amount 2008 2007 Single 5450...
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This note was uploaded on 09/28/2008 for the course ACCT 321 taught by Professor Lacktorin-revier during the Spring '08 term at Wisc Eau Claire.

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Study_Guide_test_1_acct_321[1] - Study Guide Chapter 1, 3,...

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