You Decide - 1170 Words

memo to: | Mr. amp; Mrs. John smith | from: | carol johnson | subject: | tax issues | date: | September 29, 2012 | | | | | Dear Mr. amp; Mrs. John Smith: After carefully evaluating your tax issues my staff and I have come to the following conclusions on the questions you presented us. 1. John Smith tax issues: a. How is the $300,000 treated for purposes of federal tax income? The $300,000 you earned is considered earned income; therefore, it should be reported as gross income on either a Schedule C of your individual income tax return or if you have reported your company as being a LLC, you can file a LLC return. b. How is the $25,000 treated for purposes of federal tax income? The $25,000 would not be†¦show more content†¦There are no tax benefits to Johns income, but Janes could use the $15,000 for purchase of equipment which could produce tax benefits that would become part of their joint return. If she left them in her business bank account, there would be no benefit to either of them. f. Can Jane depreciate her vehicle or jewelry-making equipment? How? She can use the standard mileage rate based on business miles. An alternative method would be to depreciate her vehicle and declare that depreciation plus all auto expenses to the extent of business use, based on mileage. If business miles amount to 60% of total miles, for example, then 60% of all expenses including depreciation would be allowable (IRS , 2012). Either method requires Jane to track her business mileage. The equipment can be depreciated by one of two methods: Section 179 allows for a full write off in the year of acquisition (subject to certain limits). MACRS depreciation allows a systematic write off of equipment based on the type of asset. More business assets are either 5 year or 7 year property (CompleteTax, 2012). 3. John and Jane Smith tax issue: a. Should John and Jane file separate or joint tax returns? Typically, married individuals more tax benefits by filing jointly. Filing a separate return provides relief from joint liability for taxes. However, married taxpayers who file separately are not eligible for many tax deductions and credits, andShow MoreRelatedYou Decide1023 Words   |  5 Pagesjob applicant and the supervisor, and respond to the questions regarding the other parties who have an interest in hiring the job applicant. Use the Worksheet to answer the questions related to this scenario. Each question is worth 20 points. Once you are finished, submit your assignment to the Dropbox. Questions: 1. What is the appropriate negotiation strategy that would be most advantageous for Sharon and Jim in this scenario, distributive or integrative bargaining? What are the factors thatRead MoreYou Decide1539 Words   |  7 Pagesclient, John. 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How is the $300,000 treated for purposes of Federal tax income? †¢ The $300,000 is included in your gross income. You earned the $300,000 by providing legalRead MoreYou Decide - Proposal2758 Words   |  12 PagesWe are ecstatic about your decision to get a website. That is a great business decision and perhaps one of the best investments that you can make towards growing your business. It’s my pleasure to work with you! The website will help you in many ways. One primary reason is that it will help you reach unlimited customers around the world. Well, let me tell you a little about our company – The Website Specialist. For years, we have been successful in helping thousands small businesses like yourselfRead MoreYou Decide Essay771 Words   |  4 PagesWeek 3 You Decide mYa Cater SOCS 350 07/20/2011 Gail Rognan My job is to hire a sales manager who will sell the latest fiber optics to leading wireless manufacturers of five key companies. Some of the job requirements are that the sales representative must be articulate, sophisticated, and knowledgeable about fiber optics. The job also requires travel Monday through Friday in order for the sales representative to work with those in the prospective company. The jobRead MoreYou Decide 11137 Words   |  5 Pagesfederal tax income? Applicable Law amp; Analysis: http://www.irs.gov/businesses/small/selfemployed/index.html Conclusion: The $300,000 will be treated as self- employed income. Generally you are self-employed if you carry on a trade or business as a sole proprietor, independent contractor, or if you are a member of a partnership. Self-employed individuals are required to file an annual return, and pay estimated tax quarterly. Issue b) How is the $25,000 treated for purposes of federalRead MoreYou Decide Essay example693 Words   |  3 PagesYou Decide: Susie Marks vs. City of Elsewhere and Officer Ruthless Susie Marks caught a ride to Elsewhere City Park from Orson, who then dropped her off and left. She met her friend Jerry and his girlfriend Kate. Orson was to return for Susie at 11:00 p.m., which is the park’s curfew. Around 11:00 p.m. Officer Ruthless of the Elsewhere Police Department, approached the three minors and informed them the park was closing and instructed to leave the park immediately. Unfortunately, Orson had notRead MoreYou Decide Week 42602 Words   |  11 PagesYour Decide Assignment Week 4 ACC 553 1. John Smith tax issues: a. How is the $300,000 treated for purposes of federal tax income? In order to determining how the $300,000 fee was received as Federal income on the part Mrs. John Smith, we first have to determine the requirements for income. According to Code Sec. 61(a)(1) of the Internal Revenue Code (IRC) â€Å"gross income includes all income from whatever source derived,† that is including the following items: compensation for servicesRead MoreYou Decide: Middleton Hospital2498 Words   |  10 PagesYou Decide: Middleton Hospital Dr. Julie Dennis, Professor 10/11/2012 David M Severance You Decide: Middleton Hospital Dr. Julie Dennis, Professor 10/11/2012 David M Severance You have been the CEO of Middlefield Hospital for 2 1/2 years and finally resolved the workforce challenges that plagued the hospital when you first arrived. 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