WEEK 12 - CHAPTER 11 QUIZ 9
QUESTION 1 (#1)
1. Which of the following statements concerning the taxation of assets is
a. Ordinary income may qualify for a special 0% rate.
b. Capital gains are alway
How is income defined?
Income, broadly defined, means the total amount of money, property, services, or other accretion to wealth
received, but it does not include borrowed money or the retur
Discuss the various types of compensation and whether they must be included in gross income.
The general rule is that compensation for services must be included in gross income, regardless of wh
Capital Asset taxing
0% 15% tax bracket or less
15% about 15% below 39.6%
20 % in 39.6%
255 1250 depreciation
ch 10,11, 12 TAX STRATEGY
hold for 1 year (long term)
income vs capital
capital=portion of inc
What is a barter transaction and how is income associated with such a transaction reported?
Bartering is an exchange of property and/or services for other property and/or s
Why does Congress sometimes allow deductions for personal expenses?
Although personal expenses are generally not deductible, Congress does allow deductions for personal
expenses when it desires to encou
INCOME TAX PLANNING LEARNING OBJECTIVES
After reading this chapter, you should be able to:
1. Describe how the system of federal taxation has changed over time.
Identify the three separate federal tax systems that impact planning decisions