Got a tricky question? Receive an answer from students like you! Try us!

Assignment 2: Tax Research on Itemized Deductions - Essay Example

Only on StudentShare
Author : rosanna13

Summary

Tax Research on Itemized Deductions Name Institution Tax Research on Itemized Deductions The current form of the United States’ taxation code is a complicated task code reform, that is usually common, that is usually common among politicians. President Ronald Regan and the Congress reformed that taxation code twice during his two-term nature in the office…

Extract of sample
Assignment 2: Tax Research on Itemized Deductions

Apparently, all the united states presidents before and after him have initiated tax reform codes. Nonetheless, his tax reform has stood to a historic tax cut. In the 1990’s, Bill Clinton lowered the middle class taxes that was followed by the year 2001’s George W. Bush massive tax cut across all incomes (Fishman, Home business.., 2012). The aim ideals behind tax reforms often aim at tax reductions; however, they do not usually simplify the tax code drastically thereby making the issue a political concern especially among politicians. Working on income tax may be a complicated issue; however, it provides people with tax deductions and tax breaks with some being unusual. The main aim of tax reduction is to reduce the taxable income in order to increase tax refund. Taxation may be carried out on either standard deduction or itemized deduction (Fishman, Home business.., 2012). The main purpose of standard reduction is the presetting income to allow a deduction on the annual taxable income. The amount deductible often varies according to an individual’s filling tax status and the annual inflation. ...
Download paper

Related Essays

Income Tax and Corporation Tax in the United Kingdom
The paper tells that historically, taxation in Britain was collected from serfs who paid rent to their landlords in return for protection. However, in the 1600s, a unified land law was passed which vested control and power to the Crown. Land and property taxes were collected from each landowner to support the government. In the 1800s, income tax was introduced, first to support wars and eventually, to support the UK government's deficit. Currently, Her Majesty's Revenue & Customs (HMRC) is in charge of collecting taxes in the United Kingdom. There are several types of tax that are payable…
15 pages (3765 words)
Tax Advice Assignment
Retaining GBP 30,000 per year in business Moving on to the first aspect, what are the major tax codes implied by the UK government. As with usual government practices across the globe, here too there is a (1) Corporation tax, (2) VAT, (3) PAYE (Pay As You Earn), (4) Self Assessment Tax, (5) Business rates tax, (6) Capital Gains Tax, (7) Stamp and Excise duties and (8) Industry specific tax. Before getting into these taxes, we need to understand the records to be maintained for an ongoing business concern or a proprietorship concern for that matter getting converted to a company format. These…
7 pages (1757 words)
Income, Deductions, and Exclusions
Such “tax breaks” reduce the total quantity of current income tax owned by organizations and individuals. The first step I would take to assist my client is to explain to him the meaning of the three tax codes. Income refers to the flow of cash or cash equivalents gained from salary or wage, interest or profit, or rent. Exclusions are items on a tax return that are reported but not taxed. Deductions are categorized into two; itemized deductions and standard deductions (Kohler, 2011). Majority of tax payers maintain the standard deduction, which is a reduction of the entire income taxes…
3 pages (753 words)
Assignment 3: Tax Credits
Tax credits are neutral and enable the Congress in making certain that specific taxpayers get tax credit as concerns marginal tax rates (Cordes, Ebel, & Gravelle, 2005). This purpose is still relevant for today’s taxpayer because the economy of the country has continued to deteriorate over the years. As such, individual and businesses still need protection from harsh economic times. Fairness of Tax Credits and Their Impacts on Taxpayers According to (Murphy & Higgins, 2011), tax credits provide incentives to taxpayers hence motivating them to actively engage in certain economic activities.…
8 pages (2008 words)
Assignment 3: Tax Reform
Reducing the Tax Bite The tax impact on dividends as well as interest sustained in many ways like owning stocks in an account that is tax free, or by holding stocks that increase in value with time and pay no dividends. Tax Issues it is being argued that the tax structure enforces an extremely high percentage which makes it extremely difficult for corporation in the United States of America to attract investors and raise capital. This in turn has a linchpin affect because no new jobs are created and the entire economical development process is hindered. It is believed that the tax rate needs…
5 pages (1255 words)
Deductions and Losses:Certain Itemized Deductions
However, medical expenses like maternity clothing and funeral expenses are normally considered non-deductibles. It is also important to recognize that charges for nursing care are also incorporated in deductible medical expenditures. Additionally, in case of any capital enhancement that unswervingly relates to health care, for example, costs sustained to facilitate self-reliance of a handicapped person is considered a deductible cost. Mostly, these extra costs are deducted to the degree to which the costs sustained surpass the raise in worth of the property. In certain situations, like…
3 pages (753 words)
Assignment 4: Estate Tax
Looking at the figure of 2010 fiscal, the estate tax returns amounted to 0.02% of the total tax return with huge losses in tax revenue. Currently, IRS has modernized tax collection methods and has three computerized tax collection centers apart from ten other tax collection centers. The centers receive returns over mail and compile the returns at their end. The current level of interest and audit has tightened like ever before. IRS is reconsidering the method of valuation of estate tax for wealthy individuals. In the process, the agency has also discarded some of its favorite methods of tax…
6 pages (1506 words)