Chapter 1 probs - Chapter 1 Introduction to Taxation Problems 1 LO.1Review and illustrate the components of a tax 2Identify the various taxes affecting

Chapter 1 probs - Chapter 1 Introduction to Taxation...

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Chapter 1 – Introduction to Taxation Problems 1.LO.1Review and illustrate the components of a tax., 2Identify the various taxes affecting business enterprises., 5Recognize tax planning opportunities and apply a general framework for tax planning. James Corporation believes that it will have a better distribution location for its product if it relocates the corporation to another state. What considerations (both tax and nontax) should James weigh before making a decision on whether to make the move?2.LO.1Review and illustrate the components of a tax. Distinguish between taxes that are proportionaland those that are progressive3.LO.2Identify the various taxes affecting business enterprises. Several years ago, Ethan purchased the former parsonage of St. James Church to use as a personal residence. To date, Ethan has not received any ad valorem property tax bills from either the city or the county tax authorities.1.What is a reasonable explanation for this oversight?2.What should Ethan do?4.LO.1Review and illustrate the components of a tax., 6Recognize the economic, social, equity, and political considerations that underlie the tax law. In terms of Adam Smith's canon of convenience, how does the Federal income tax fare?5.LO.2Identify the various taxes affecting business enterprises. Jim, a resident of Washington (which imposes a general sales tax), goes to Oregon (which does not impose a general sales tax) to purchase his automobile. Will Jim successfully avoid the Washington sales tax? Explain.6.LO.2Identify the various taxes affecting business enterprises. What is the difference between an excise tax and a general sales tax?1.Do all states impose a general sales tax?2.Does the Federal government impose a general sales tax?7.LO.2Identify the various taxes affecting business enterprises. How much property can Herman, a widower, give to his four married children, their spouses, and eight grandchildren over a period of 10 years without making a taxable gift? Show your computations.8.LO.2Identify the various taxes affecting business enterprises. Once its new facilities are finished, the Church of the Good Samaritan moves from downtown Madison City to the suburbs. Instead of disposing of the old location, the church leases it to a former mayor of Madison City, who converts the church building and its parking lot into a high-end restaurant. Comment on any tax ramifications of this arrangement. wwwFor the latest in changes to tax legislation, visit 9.LO.2Identify the various taxes affecting business enterprises. The Toth family lives in a residence that they have owned for several years. They purchased the residence from St. Matthew's Catholic Church, which had used the house as a rectory for its priest. To the Toths' surprise, since they purchased the residence, they have not received any ad valorem property tax .

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