Chapter 2 Homework[1] - 2. John installed a new roof on his...

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Unformatted text preview: 2. John installed a new roof on his friend’s house in return for a used truck worth $8,000. How much income must John report on his tax return for his services? Since the vehicle is a gain derived from dealings with property, John will have to claim the truck as income of $8000------------------------------------------------------------------------------------------------------------------ 5. How are qualified dividends taxed in 2009? Please give the two rates of tax which apply to qualified dividends and when each of these rates applies. Defined by the United States Internal Revenue Code, are ordinary dividends that meet specific criteria to be taxed at the lower long-term capital gains tax rate rather than at higher tax rate for an individual's ordinary income. If one is in the ordinary tax bracket then the qualifying dividend rate is 0% and for the higher brackets it is 15%. ------------------------------------------------------------------------------------------------------------------...
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This note was uploaded on 11/29/2010 for the course ACC 102 taught by Professor Me during the Spring '10 term at Central Methodist University.

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Chapter 2 Homework[1] - 2. John installed a new roof on his...

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