TRUE OR FALSE: - A sole proprietor must use the same tax year for her business...
TRUE OR FALSE:
- A sole proprietor must use the same tax year for her business as she uses for personal purposes.
- An S corporation may adopt a fiscal year without IRS permission
- A taxable year may be as short as one day or may exceed 360 days
- An estate must adopt a calendar year
- Under no circumstances may a corporation change its fiscal year without advance IRS notice
Homework Answers
1. TRUE
As a sole proprietor one must report all business income or losses on one's personal income tax return, the business itself is not taxed separately.
2. FALSE
The S corporation tax-year rules state that an S corporation must use a permitted year to the satisfaction of the IRS.
3. TRUE
REMICs must have a calendar year as their tax year unless it can establish a business purpose for having a different tax year or It elects under section 444 to have a tax year other than a calendar year
4. TRUE
If you change your fiscal year, you must change your tax year. If you want to change your tax year, you must have IRS approval.
Add Answer to:
TRUE OR FALSE:
- A sole proprietor must use the same tax year for her business...
Please answer the True/False questions to the best of your knowledge. 1) For federal tax purposes,...
Please answer the True/False questions to the best of your knowledge. 1) For federal tax purposes, gross income from the sale of tangible goods is reduced by the seller's cost of goods sold. 2) Taxable income is defined as gross income minus allowable deductions and credits. 3) A taxpayer that wants to change its taxable year from a fiscal year to a calendar year is not required to receive permission from the IRS to make the change. 4)...
1. How does financial accounting differ from tax accounting? 2. Jason is single and uses the...
1. How does financial accounting differ from tax accounting? 2. Jason is single and uses the calendar year for his tax year. He died on May 15, 2019. When is his final income tax return due! 3. If a taxpayer is on the fiscal year, what is the requirement regarding the taxpayer's books? 13. In which of the following cases must the taxpayer annualize its income for a period of less than 12 months? a. Alpha Corporation was formed on...
Chart of Entity Comparison Sole Proprietor Partnership C Corporation S Corporation LLC Legal Status Same entity...
Chart of Entity Comparison Sole Proprietor Partnership C Corporation S Corporation LLC Legal Status Same entity as owner Separate entity from owner Separate entity from owner Separate entity from owner Separate entity from owner Tax Year Same as owner Majority interest rules; principal partner rules; or the least aggregate deferral of income rule; exceptions may be the business purpose of 444 election Calendar or fiscal year Calendar year; 444 election; or business purpose demonstrated Depends on tax status as sole...
I. TRUE OR FALSE (20 POINTS) 1. Partnerships may adopt any fiscal tax year if the...
I. TRUE OR FALSE (20 POINTS) 1. Partnerships may adopt any fiscal tax year if the tax year is used consistently. 2. The IRS will automatically grant a request for a change in tax years, provided the proper form is filed in a timely manner. 3. "Annualizing" is a method by which the taxpayer can usually decrease the amount of tax he or she pays. 4. Generally, cash basis taxpayers must account for payments of prepaid interest using the accrual...
39. Identify which of the following statements is false. A) In a Type C reorganization, the...
39. Identify which of the following statements is false. A) In a Type C reorganization, the acquired corporation must distribute stock, securities, and other property it receives to its shareholders. B) A Type C reorganization is less flexible than a Type A reorganization because of the solely for-voting stock requirement of a Type C. C) To qualify as a Type C reorganization, the target corporation must be formally dissolved. D) In a Type C reorganization, shareholders of the acquiring corporation...
20. For assets acquired during the year, the sum-of-the-years'-digits method requires that the same depreciation rate...
20. For assets acquired during the year, the sum-of-the-years'-digits method requires that the same depreciation rate be used .. a. for the remaining months of the year of acquisition, then again in the final year of the asset's estimated life for any months not depreciated in Year 1. b. for 12 consecutive months, even if that results in the same rate being used in two different calendar years. c. throughout the life of the asset. d. until the end of...
20. For assets acquired during the year, the sum-of-the-years'-digits method requires that the same depreciation rate...
20. For assets acquired during the year, the sum-of-the-years'-digits method requires that the same depreciation rate be used... a. for the remaining months of the year of acquisition, then again in 0 the final year of the asset's estimated life for any months not depreciated in Year 1. b. for 12 consecutive months, even if that results in the same rate being used in two different calendar years. c. throughout the life of the asset. d. until the end of...
MULTIPLE CHOICE AND TRUE/FALSE QUESTIONS (100 POINTS) 1. Standard deduction for tax purposes are:...
MULTIPLE CHOICE AND TRUE/FALSE QUESTIONS (100 POINTS) 1. Standard deduction for tax purposes are: a. Deductions from AGI (Adjusted Gross Income) b. Made up of basic and additional deductions Permitted only for those using form 1040EZ or 1040A c. d. All of the above e. Only a and b above. 2. T, F. Exemptions unlike standard deductions are not deducted from AGI 3. T, F. Exemptions provide taxpayers with their biggest tax deductions 4. T, F. Any person filing a...
18-20 True or false ...1 AT&T X 6:28 PM CONT 4007 ... 249% û nor ued...
18-20 True or false
...1 AT&T X 6:28 PM CONT 4007 ... 249% û nor ued to make 18 Employers with annual payroll tax liabilities of $1.000 or less withholdings to their employees 19. Employers sunt to payment of household employment mayrort thing form 1040 Schedule Hor induding the taxes of their domestic employees in their business Forms 91 and 940 20. A household employee has the right to require his employer to make withholdings for the payment of federal...
QUESTION 10 Marital status is determined on the first day of an individual's taxable year. True...
QUESTION 10 Marital status is determined on the first day of an individual's taxable year. True False QUESTION 11 To protect against the negligence penalty for substantial understatement of the tax liability (without disclosure), the taxpayer's position must have substantial authority. True False QUESTION 12 Adjusted gross income is total income after subtracting all deductions. True False Question Completion Status: QUESTION 13 X and Y are the divorced parents of JR. The divorce was granted in June of 2020 and...
1. How does financial accounting differ from tax accounting? 2. Jason is single and uses the calendar year for his tax year. He died on May 15, 2019. When is his final income tax return due! 3. If a taxpayer is on the fiscal year, what is the requirement regarding the taxpayer's books? 13. In which of the following cases must the taxpayer annualize its income for a period of less than 12 months? a. Alpha Corporation was formed on...
I. TRUE OR FALSE (20 POINTS) 1. Partnerships may adopt any fiscal tax year if the tax year is used consistently. 2. The IRS will automatically grant a request for a change in tax years, provided the proper form is filed in a timely manner. 3. "Annualizing" is a method by which the taxpayer can usually decrease the amount of tax he or she pays. 4. Generally, cash basis taxpayers must account for payments of prepaid interest using the accrual...
39. Identify which of the following statements is false. A) In a Type C reorganization, the acquired corporation must distribute stock, securities, and other property it receives to its shareholders. B) A Type C reorganization is less flexible than a Type A reorganization because of the solely for-voting stock requirement of a Type C. C) To qualify as a Type C reorganization, the target corporation must be formally dissolved. D) In a Type C reorganization, shareholders of the acquiring corporation...
20. For assets acquired during the year, the sum-of-the-years'-digits method requires that the same depreciation rate be used .. a. for the remaining months of the year of acquisition, then again in the final year of the asset's estimated life for any months not depreciated in Year 1. b. for 12 consecutive months, even if that results in the same rate being used in two different calendar years. c. throughout the life of the asset. d. until the end of...
20. For assets acquired during the year, the sum-of-the-years'-digits method requires that the same depreciation rate be used... a. for the remaining months of the year of acquisition, then again in 0 the final year of the asset's estimated life for any months not depreciated in Year 1. b. for 12 consecutive months, even if that results in the same rate being used in two different calendar years. c. throughout the life of the asset. d. until the end of...
MULTIPLE CHOICE AND TRUE/FALSE QUESTIONS (100 POINTS) 1. Standard deduction for tax purposes are: a. Deductions from AGI (Adjusted Gross Income) b. Made up of basic and additional deductions Permitted only for those using form 1040EZ or 1040A c. d. All of the above e. Only a and b above. 2. T, F. Exemptions unlike standard deductions are not deducted from AGI 3. T, F. Exemptions provide taxpayers with their biggest tax deductions 4. T, F. Any person filing a...
18-20 True or false
...1 AT&T X 6:28 PM CONT 4007 ... 249% û nor ued to make 18 Employers with annual payroll tax liabilities of $1.000 or less withholdings to their employees 19. Employers sunt to payment of household employment mayrort thing form 1040 Schedule Hor induding the taxes of their domestic employees in their business Forms 91 and 940 20. A household employee has the right to require his employer to make withholdings for the payment of federal...
QUESTION 10 Marital status is determined on the first day of an individual's taxable year. True False QUESTION 11 To protect against the negligence penalty for substantial understatement of the tax liability (without disclosure), the taxpayer's position must have substantial authority. True False QUESTION 12 Adjusted gross income is total income after subtracting all deductions. True False Question Completion Status: QUESTION 13 X and Y are the divorced parents of JR. The divorce was granted in June of 2020 and...
Most questions answered within 3 hours.
-
Mr. and Mrs. Brown report taxable income of $130,000 in 2018. In
addition, they report the...
asked 1 hour ago -
You capture data by having 8 people fill in 30 small dots on a
piece of...
asked 5 hours ago -
What are the z-values such that 70% of the area lies in the
middle of the...
asked 7 hours ago -
You borrow $29,500 to purchase a brand new car. The interest
rate is 6%, and the...
asked 6 hours ago -
The amount of time it takes an asteroid, whose average distance
from the Sun is 4.70...
asked 7 hours ago -
A 0.289 kg mass slides on a frictionless floor with a speed of
1.34 m/s. The...
asked 7 hours ago -
15.A box contains five red balls, three green balls, and two
yellow balls. Suppose you select...
asked 9 hours ago -
Assume you are given the following for Stackelberg industries:
Return on Assets (ROA) = 8%
Debt...
asked 8 hours ago -
an engineer proposes to use mmWave in 5G network to
increase data rate.
What are the...
asked 8 hours ago -
Explain the idea behind using SEMIJOIN in distributed
query processing.
asked 8 hours ago -
why
is context important in selecting and applying guidelines and
principles for interface design?
illustrate your...
asked 8 hours ago -
In a certain board game, a player rolls two fair six-sided dice
until the player rolls...
asked 9 hours ago