Homework Answers
As per tax laws, ordinary dividend (i.e. dividend from common or preferred stock), is treated as ordinary income and it is taxable. Qualified dividends are taxable at 20%, 15%, or 0% rate, depending on your tax bracket. Since dividend income is taxable, it is included in gross income.
Gifts, interest from municipal bonds and scholarship are exempt from tax and hence excluded from gross income.
Answer: Dividend income
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1. Which of the following is not excluded from gross income? Interest income from municipal bonds....
Which is true? a. Gain on the sale of municipal bonds is excluded from tax. b....
Which is true? a. Gain on the sale of municipal bonds is excluded from tax. b. The Additional Medicare Tax applies only to self-employment income. c. In order to be subject to the kiddie tax the child must qualify as a dependent. d. Advance rental payments are taxed when eamed (not when received) by an accrual-basis taxpayer. e. None
Which of the following items should be properly excluded from gross income (i.e., included as part...
Which of the following items should be properly excluded from gross income (i.e., included as part of gross income then subtracted as an exclusion)? (Choose all of the correct answers.) Interest received from state-issued bonds Foreign-income earned of $26,000 when the taxpayer was out of the country for 342 days during the year Forgiveness of the mortgage on a taxpayer's personal residence when he was insolvent before and after the forgiveness Lawsuit damages meant as a replacement of lost income...
Why does the Federal Government exclude from gross income interest on municipal bond interest?
Why does the Federal Government exclude from gross income interest on municipal bond interest?
Mark each classification of income as taxable or not taxable. child support interest on municipal bonds...
Mark each classification of income as taxable or not taxable. child support interest on municipal bonds scholarship for tuition scholarship for living expenses work study job or graduate assistance ship insurance proceeds interest on insurance proceeds gifts veterans’ benefits prizes Welfare alimony from 2018 divorce separate maintenance (this is what Texans call alimony) from 2019 divorce a. taxable b. not taxable
The Dawg corporation has Gross Income of $2,200,000 not including Municipal Bond Interest of $90,...
The Dawg corporation has Gross Income of $2,200,000 not including Municipal Bond Interest of $90,000, and deductions of $700,000. Calculate Dawg's tax liability. 2 Taxable Liability
The Dawg corporation has Gross Income of $2,200,000 not including Municipal Bond Interest of $90,000, and deductions of $700,000. Calculate Dawg's tax liability. 2 Taxable Liability
Which of the following is an item of income that is excluded from taxable income but...
Which of the following is an item of income that is excluded from taxable income but must be added back for earnings and profits purposes? A) Lobbying expenses and political contributions B) Tax exempt bond interest income C) Federal income taxes paid or accrued D) Disallowed entertainment expenses
Which of the following is a reason municipal bonds offer lower rates of interest income for...
Which of the following is a reason municipal bonds offer lower rates of interest income for their investors? Select one: A. They are able to avoid interest rate risk. B. They are tax exempt - at least at the federal level. C. They are able to offer reduced credit risk as they are backed by the federal government. D. They are able to avoid reinvestment rate risk. A two-year Treasury security currently earns 5.25 percent. Over the next two years,...
1. Blake, a divorced single, has a dividend income of $3,700 and a municipal interest income...
1. Blake, a divorced single, has a dividend income of $3,700 and a municipal interest income of $2,750. Blake earned a salary of $42,000. Blake’s salary withheld for FICA was $3,213, $1,575 withheld for state income tax, and $3,500 withheld for Federal income tax. Blake also receive a gift of $20,000 from his father in 2019. Blake paid $3,000 alimony to his ex-wife (their divorce agreement was settled in 2016). Calculate Blake’s gross income Blake’s AGI Blake’s taxable income Blake’s...
All of the following amounts are excluded from gross income, except: a.Scholarship grants for tuition b.Veterans'...
All of the following amounts are excluded from gross income, except: a.Scholarship grants for tuition b.Veterans' benefits c.Tips and gratuities d.Gifts e.Child support payments
1. Downed "tax exempt" municipal bonds. Are the bonds includable in her gross estate?
1. Downed "tax exempt" municipal bonds. Are the bonds includable in her gross estate?
Which of the following items should be properly excluded from gross income (i.e., included as part of gross income then subtracted as an exclusion)? (Choose all of the correct answers.) Interest received from state-issued bonds Foreign-income earned of $26,000 when the taxpayer was out of the country for 342 days during the year Forgiveness of the mortgage on a taxpayer's personal residence when he was insolvent before and after the forgiveness Lawsuit damages meant as a replacement of lost income...
The Dawg corporation has Gross Income of $2,200,000 not including Municipal Bond Interest of $90,000, and deductions of $700,000. Calculate Dawg's tax liability. 2 Taxable Liability
The Dawg corporation has Gross Income of $2,200,000 not including Municipal Bond Interest of $90,000, and deductions of $700,000. Calculate Dawg's tax liability. 2 Taxable Liability
Which of the following is a reason municipal bonds offer lower rates of interest income for their investors? Select one: A. They are able to avoid interest rate risk. B. They are tax exempt - at least at the federal level. C. They are able to offer reduced credit risk as they are backed by the federal government. D. They are able to avoid reinvestment rate risk. A two-year Treasury security currently earns 5.25 percent. Over the next two years,...
1. Downed "tax exempt" municipal bonds. Are the bonds includable in her gross estate?
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