Question

Federal Income Taxes Individuals and firms pay out a significant portion of their income as taxes, so taxes are important in both personal and corporate decisions. Our tax system is progressive. Individual Individuals pay taxes on wages, on investment income, and on the profits of proprietorships and partnerships. Taxable income is defined as gross income less a set of exemptions and deductions. In 2013, the personal exemption is $3,900 per person. A capital gain (loss) is the profit (loss) from the sale of a capital asset for more (less) than its purchase price. capital gain is taxed at a maximum rate of 15%, while a short-term In 2013, for most taxpayers a long-term :O :O capital gain is taxed as ordinary income [For single taxpayers with incomes over $400,000 and married taxpayers filing jointly with incomes over $450,000, the maximum tax rate on long-term capital gains has increased to 20%.]. income consists of dividend and interest income. Interest income (except interest on state and local government debt which is exempt from federal taxes) is Investment taxed as ordinary Income while dividends are taxed at the same rate as long-term Generally, interest payments are not tax deductible for capital gains home mortgages : O within certain limits. Projected 2013 tax rate schedules are shown for single individuals and married couples filing jointly. individuals except for interest on 2013 Individual Tax Rates Single Individuals It Pays This Plus This Percentage Average Tax on the Excess over the Rate at If a Corporation's Amount on the Base (Marginal Rate) Taxable Income Is Base of the Bracket Top of Bracket Up to $8,925 10.0% 10.0% $8,925 - $36,250 892.50 15.0 13.8 $36,250 - $87,850 4,991.25 25.0 20.4 $87,850 - $183,250 17,891.25 28.0 24.3 $183,250 - $398,350 44,603.25 33.0 29.0 $398,350 - $400,000 115.586.25 35.0 29.0 Over $400,0000 39.6 116,163.75 39.6 Standard deduction for individual: $6,100 Married Couples Filing Joint Returns It Pays This Plus This Percentage Average Tax on the Excess over the Rate at If a Corporation's Amount on the Taxable Income Is Base of the Bracket Base (Marginal Rate) Top of Bracket Up to $17,850 $0 10.0% 10.0% $17,850 - $72,500 1.785.00 15.0 13.8 $72,500 - $146,400 9,982.50 25.0 19.4 $146,400 - $223,050 28,457.50 28.0 22.4 $223,050 - $398,350 49,919.50 33.0 27.1 $398,350 - $450,000 107,768.50 35.0 28.0 Over $450,000 125,846.00 39.6 39.6

Answer 1

Page RANKA $102 000 ($3900) $ 9816 (46100) $92000 CROSS Income (M) Personal exemption (-) Standard deduction Taxable income @ orelinary sate Tax lability $92000 @ ordinary tax rate [998257 19500x 257) $ 6200_long term capital gais @ 15% - Tax liability $14858 $ 992 $15850 (2) For corporation Gross income Profets - $258000 Interest - $95800 Bludend - $31800 $315600 () Interest DRD @ 307 (31800x70%) Taxable income Upto $100000 - 22250 $182340 @ 39% $11000) $(22260) $282340 $22250 $71113 Tax liability $93363