346Sim05 (2).xlsx - Links to Worksheets in File Introduction Questions Analysis Objectives Outcomes The objective of this computerized tax simulation is

346Sim05 (2).xlsx - Links to Worksheets in File...

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Links to Worksheets in File Facts Year 1 25% Assume that she has a 2% discount rate. Issue Introduction Questions Analysis Alicia is a cash basis taxpayer who uses a calendar year tax rep income is from an accounting practice that she runs as a sole-pr Schedule C). She has decided to make her operations "paperless" and needs t new digital technologies with 5-year class lives. She estimates t efficiency of her firm and its net profit before depreciation. As a tax rates to be increasing over the life of the investment: How should Alicia depreciate her investment in the assets that s More specifically, should she take the entire deduction allowed Authorities Internal Revenue Code (IRC) §1 imposes a tax on an individual taxable income to mean gross income, which generally includes (per §61) minus allowable deductions. Objectives & Outcomes The objective of this computerized tax simulation is to help you learn how tax planning for deductions is affected by a taxpayer's marginal tax rates and the interaction between those tax rates (as they change over time) and the taxpayer's discount rate (in net present value calculations). To accomplish this objective, you must -read the Facts, Issues, & Authorities sections below, -use the related Excel spreadsheet to analyze the taxpayer's facts, given the tax law -record your answer to the questions in this file, and -submit your Excel file in the manner prescribed in the course syllabus (e.g., upload via Canvas).

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