tailieunhanh - Lecture Taxation of individuals and business entities 2015 (6/e) - Chapter 4: Individual income tax overview, exemptions, and filing status

Chapter 4 - Individual income tax overview, exemptions, and filing status. Upon completion of this lesson, the successful participant will be able to: Describe the formula for calculating an individual’s tax liability and generally explain each formula component, explain the requirements for determining a taxpayer’s personal and dependency exemptions, determine a taxpayer’s filing status,. | Chapter 4 Individual Income Tax Overview, Exemptions, and Filing Status Learning Objectives Describe the formula for calculating an individual’s tax liability and generally explain each formula component. Explain the requirements for determining a taxpayer’s personal and dependency exemptions. Determine a taxpayer’s filing status. Individual Income Tax Formula Gross income Minus: For AGI deductions Equals Adjusted gross income Minus: From AGI deductions: Greater of (a) Standard deduction or (b) Itemized deductions and Personal and dependency exemption Equals Taxable income Individual Income Tax Formula Taxable income Times: Tax rates Equals: Income tax liability Add: Other taxes Equals: Total tax Minus: Credits Minus: Prepayments Equals: Taxes due or (refund) Please insert exhibit 4-1 on this slide where indicated Individual Income Tax Formula Individuals report taxable income to the IRS Reported on Form 1040 . tax laws use all-inclusive gross income concept Realized income | Chapter 4 Individual Income Tax Overview, Exemptions, and Filing Status Learning Objectives Describe the formula for calculating an individual’s tax liability and generally explain each formula component. Explain the requirements for determining a taxpayer’s personal and dependency exemptions. Determine a taxpayer’s filing status. Individual Income Tax Formula Gross income Minus: For AGI deductions Equals Adjusted gross income Minus: From AGI deductions: Greater of (a) Standard deduction or (b) Itemized deductions and Personal and dependency exemption Equals Taxable income Individual Income Tax Formula Taxable income Times: Tax rates Equals: Income tax liability Add: Other taxes Equals: Total tax Minus: Credits Minus: Prepayments Equals: Taxes due or (refund) Please insert exhibit 4-1 on this slide where indicated Individual Income Tax Formula Individuals report taxable income to the IRS Reported on Form 1040 . tax laws use all-inclusive gross income concept Realized income measurable change in property rights All realized income included in gross income unless specifically excluded or deferred Recognized income Reported on tax return Individual Income Tax Formula Excluded and Deferred income not included in gross income Excluded income Income never included in taxable income Municipal bond interest Gain on sale of personal residence Deferred income Income included in a subsequent tax year Installment sales Like-kind exchanges Individual Income Tax Formula Character of income or loss Determines rates applicable to income or loss in current year Tax exempt – no tax Tax deferred – no tax in current year (current year tax rate is zero) Ordinary – ordinary rates from tax rate schedule Qualified dividends taxed at 0, 15%, or 20% depending on taxpayer’s income level Capital gain or loss – depends on whether short-term or long-term From selling capital asset If held capital asset more than a year gain or loss is long-term, otherwise it is short-term Net .

• Tài chính doanh nghiệp
• Business entities
• Individual taxation
• Multijurisdictional taxation
• Transfer taxes
• Individual income tax
• Filing status
• Urban market business entities
• Competitiveness of urban market business entities
• Market business entities
• Organization and management capacity
• Finance competence and business performance
• Essentials of taxation
• Business tax credits
• Corporate alternative minimum tax
• Limited liability entities
• Profits and distributions
• Entity legal classification
• Nontax characteristics
• Business income
• Accounting methods
• Operating partnerships
• Flow through entities
• The financial statements
• Business deductions
• Financial statements
• Loss limitations
• Property transactions
• Corporate taxation
• Nonliquidating distributions
• Corporate formation
• Taxable acquisitions
• Partnership interests
• Partnership distributions
• Operating distributions
• Post termination transition period
• Local taxes
• Income taxes
• Multinational transactions
• Taxing multinational transactions
• Wealth planning
• Tax rate structures
• Federal taxes
• Tax compliance
• Tax authorities
• Tax planning strategies
• Related limitations
• Gross income
• Recognize income
• Individual deductions
• Deductions for AGI