ACC 301- Assignment 3

ACC 301- Assignment 3 - 4. Most exclusions exist for one of...

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4. Most exclusions exist for one of two reasons what are those reasons? The two reasons of exclusions are both social and economic objectives. An economic exclusion example would be the foreign earned income exclusion. This exclusion mitigates the double taxation for US citizens that work in foreign country. As a result companies are not afraid to expand into other countries because there employees would not be punished. A social exclusion would be the exclusion for self help income. This exclusion is for those tax payers that benefit from activities such as painting their own homes or fixing their own cars. This exclusion makes sure that you do not have to hire someone to do your work nor charge a friend for work you help them with and they with you 5a. If a gift of property is made who is taxed on income produced by the property? The recipient of the property is taxed on the income. 5b. How can inter-family gifts reduce a family's total tax liability? Congress has excluded the value of gifts and inheritances from gross income.
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ACC 301- Assignment 3 - 4. Most exclusions exist for one of...

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