For tax purposes, one of the requirements to recognize income is: A) The transaction does not have to be completed. B) The income cannot be tax-exempt. OC) The transaction does not have to have an economic benefit. J D) None of these.
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For tax purposes, one of the requirements to recognize income is: A) The transaction does not have to be completed. B) The income cannot be tax-exempt. OC) The transaction does not have to have an economic benefit. J D) None of these.
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- The definition of gross income in the tax law is: All items specifically listed as income in the tax law All cash payments received for goods provided and services performed All income from whatever source derived All income from whatever source derived unless the income is earned illegallyTwo reason why expenses may not be deductiable for income tax/ corporatiion tax purposes.Ordinary and necessary trade or business expenses used to generate tax-exempt income would be deductible. True False
- 1) Non-assessable income does not increase tax liability, but tax-free income increases tax liability- Discuss with example. Need more explanation .The constructive receipt doctrine requires that income be recognized when it is made available to the cash basis taxpayer even though there are restrictions on actually receiving it. The constructive receipt doctrine does not apply to accrual basis taxpayers. True FalseExplain two main reasons why expenses may not be deductible for income tax/corporation tax purposes
- Explain the tax phrase “exclusion from gross income.”TRUE OR FALSE?1st statement: Interest income must be included in the computation of gross income if it was not subjected to final tax. 2nd statement: Compensation constructively paid must be included in the computation of gross income if it was nor previously subjected to withholding tax.is it true or false that Income tax is least likely to impact on the resultant entitlement
- 1. It is the exploitation by the taxpayer of legally permissible alternative tax rates or methods of assessing taxable property or income in order to avoid or reduce tax liability. a. Capitalization b. Shifting c. Evasion d. AvoidanceIf an item is excluded from income taxation, it would follow that the same islikewise exempt from other internal revenue taxes. TRUE OR FALSE?What types of income should not be classified as such on a tax return? Why shouldn't they be considered as income?