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ACCT 3315 final UTA REPSIS QUESTIONS AND ANSWERS RATED A+ 2024/2025
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ACCT 3315 final UTA REPSIS QUESTIONS AND ANSWERS RATED A+ 2024/2025
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ACCT 3315 final UTA REPSISProportional tax - ANSA tax wherein the average tax rate is the same at all earnings degrees.
Progressive tax - ANSA tax for which the share of profits paid in taxes will increase as income
increases
regressive tax - ANSA tax for which the share of income paid in taxes decreases as earnings
will increase
Criteria of tax shape - ANSEquity
Certainty
Convenience
Economy
Simplicity
Equity - ANSA instead obvious criteria for a very good tax is that the tax be equitable or honest
to taxpayers. However, fairness or equity is elusive due to the subjectivity of the concept. What
one character can also conclude is honest in a particular state of affairs can be considered
totally unfair by using some other character. In different phrases, equity is relative in nature and
is extraordinarily tough to degree.
Certainty - ANSA sure tax (1) guarantees a strong supply of government working sales and (2)
offers taxpayers with a few diploma of predictability concerning the amount of their annual tax
legal responsibility. A tax that is simple to apprehend and administer provides actuality for
taxpayers.
Comfort - ANSA tax law should be effortlessly assessed, accrued, and administered. Taxpayers
have to no longer be overly burdened with the upkeep of information and compliance issues
(guidance in their tax returns, price in their taxes, and so forth). The earnings tax within the
United States does now not fare nicely in this category, as the annual training of income tax
returns in addition to accumulation of underlying records is a formidable assignment
Economy - ANSAn in your price range tax shape should require only minimal compliance and
administrative costs. The IRS series charges, amounting to less than zero.Five% of revenues,
are minimal relative to the total collections of sales from the federal profits tax. Estimates of
taxpayer compliance costs are much less certain. One indicator of total compliance charges for
taxpayers is the demand for tax experts. Tax practice has been and is still one of the quickest
developing areas in public accounting firms. Most big corporations also preserve large tax
departments that engage in tax studies, compliance, and planning sports. In addition, many
commercial tax go back preparer offerings are available to assist taxpayers who've rather
simple tax returns.
,Simplicity - ANSOne of the crucial measures of any tax system is that of simplicity, or at least,
no longer undue complexity. Taxpayers need to be capable of understand and follow any tax
system inside affordable limitations.
Statue of limitations of tax law - ANSThe general rule for the statute of obstacles is 3 years from
the later of the date the tax go back became virtually filed or its due date. However, a six-yr
statute of obstacles applies if the taxpayer omits items of gross income that during general
exceed 25% of the gross income suggested at the return. The statute of boundaries stays open
indefinitely if a fraudulent go back is filed or if no return is filed.
Method for character earnings tax - ANS
Deductions for AGI - ANSDeductions "above the line"
Deducted in figuring out adjusted gross income
Always lessen taxable income dollar for dollar
to qualify as a qualifying child - ANSMeet a citizenship take a look at.
Meet a separate return take a look at.
Not themselves declare some other individual as a established.
A courting take a look at.
An age check.
An dwelling house check.
A guide test.
Relationship test - ANSEligible youngsters encompass the taxpayer's children
age check - ANSA qualifying toddler must be beneath age 19, a full-time pupil under age 24, or
a permanently and absolutely disabled infant.
Abode check - ANSA qualifying child ought to have the equal predominant dwelling house as
the taxpayer for greater than half of of the year. A noncustodial parent meets this requirement if
the custodial determine is of the same opinion in writing.
Support check - ANSA qualifying infant may not offer more than one-1/2 of his or her personal
guide in the course of the yr. Support is discussed underneath in connection with qualifying
relatives. There is no requirement that the taxpayer offer more than one-half of a qualifying
child's help.
Requirements for Qualifying Relatives - ANSRelationship check.
Gross income test.
Support test.
Not a qualifying toddler.
, Gross Income Test - ANSthe qualifying relative's gross income should be much less than $4,300
($four,200 in 2019). The statutory definition of gross income is utilized in making use of this
trouble.
Child Tax Credit - ANSIndividual taxpayers can also declare a $2,000 credit for every qualifying
baby under age 17 plus a $500 credit score for every other established
Determining the Amount of Tax - ANSUse tax table to calculate.
To Whom is Income Taxable? - ANSOnce it is established that earnings is taxable, it's far
necessary to determine to whom it is taxable. Although such determinations are commonly
clean, there are situations wherein earnings isn't always taxed to the person who gets it. If
bodily receipt of income changed into the only test, a circle of relatives may reduce or eliminate
its income tax with the aid of having earnings paid to children and other members who are in
low tax brackets or haven't any tax legal responsibility.
Not unusual law property system - ANSuse a community assets system. Under common law,
income is normally taxed to the person who earns the profits, both through labor or capital. For
example, if a spouse holds inventory separately in his or her call, that partner could be taxed on
all the dividends obtained from the one by one owned inventory.
Network belongings device - ANSIncome can be either separate or community. Community
income is considered to belong equally to the spouses. In all community assets states, the
profits from the private efforts of either partner is considered to belong similarly to the spouses.
Furthermore, income from network belongings is taken into consideration to be network income.
Thus, if a wife's income is used to purchase stock, next dividends are network earnings.
States are:
Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin.
Residents of Alaska may choose to be problem to community belongings law.
When is Income Taxable? - ANSincome is recorded in another way the usage of the Cash
approach and accrual Method and the Hybrid technique.
Cash Method - ANSUnder this technique, earnings is suggested inside the 12 months the
taxpayer virtually or constructively gets the profits in preference to within the year the income is
earned. The earnings can be obtained by using the taxpayer or the taxpayer's agent and be
within the form of cash, different belongings, or offerings.
Accural Method - ANSException is Pre paid earnings
Taxpayers using the accrual method of accounting normally record profits within the 12 months
it's far earned. Income is taken into consideration to were earned when all the activities have
occurred that repair the proper to get hold of the profits and whilst the amount of earnings can
be decided with affordable accuracy.20 The Tax Cuts and Jobs Act changed the all activities
check to require that earnings be said no later than the yr it's far included on financial
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