Tax 4001 exam - Study guides, Class notes & Summaries

TAX 4001 Exam 2 Study Guide | Questions & Answers (100 %Score) Latest Updated 2024/2025 Comprehensive Questions A+ Graded Answers | With Expert Solutions

TAX 4001 Exam 1 | Questions & Answers (100 %Score) Latest Updated 2024/2025 Comprehensive Questions A+ Graded Answers | With Expert Solutions

Proportional Tax Correct Answer--applies the same rate on all income, ex: Sales Tax -Also known as a flat tax rate = Tax Base X Tax Rate Regressive Tax Correct Answer--applies a decreasing rate as the tax base increases, ex: Social Security Taxes (Payroll Taxes) -as the tax base increases, the taxes paid increase, but the marginal tax rate decreases (not common) Progressive Tax Correct Answer--imposes an increasing marginal rate as the tax base increases, ex: Federal & State Income Taxe...

TAX 4001 Exam 2 | Questions & Answers (100 %Score) Latest Updated 2024/2025 Comprehensive Questions A+ Graded Answers | With Expert Solutions

TAX 4001 Exam 1 Study Guide | Questions & Answers (100 %Score) Latest Updated 2024/2025 Comprehensive Questions A+ Graded Answers | With Expert Solutions

any decrease in tax due to a new tax law must be offset by an equal increase in a tax imposed on another group - ANSWER revenue neutrality a rule that a new law (or new measure) expires at a specific date unless further legislative action is taken to extend the law; if no action is taken, the original law is reinstated - ANSWER sunset provision

TAX 4001 Exam 1 Questions And Answers | Guaranteed Success

How are realized income, gross income, and taxable income similar, and how are they different? - ANSWER Realized income is more broadly defined than gross income which is more broadly defined than taxable income. Gross income includes all realized income that taxpayers are not allowed to exclude from gross income or are not permitted to defer to a later year. Consequently, gross income is the income that taxpayers actually report on their tax returns and pay taxes on. In the tax formula, ta...

Tax Formula - ANSWER Income (broadly defined) - Exclusions _____________________ Gross Income - Deductions (for AGI) ______________________ Adjusted Gross Income - Deductions (from AGI) (greater of either Total Itemized or Standard Deduction !and! - Personal Exemptions - Dependency Exemptions

Gain or loss recognized on Disposition of Assets - ANSWER used in a trade or business every asset disposition triggers - ANSWER a realization event for tax purposes for disposition of assets, must determine - ANSWER the amount realized and adjusted basis for each asset amount realized - ANSWER -everything of value received from the buyer less any selling costs