Problem: Examine the types of taxes imposed at the Federal, state, and local levels, the federal tax formula, and the rules for arriving at personal and dependency exemptions.
To meet the overall objective we will cover the following topics in Part 1:
- History of U.S. Taxation
- Tax structure
- The major types of taxes
- Tax administration
- Federal tax law
To meet the overall objective we will cover the following topics in Part 2:
- Tax formula
- Personal exemptions
- Dependency exemptions
- Filing a return
- Tax determination
- Gains and losses from property transactions
- Maximizing the use of standard deduction
- Dependency exemptions
- Tax rate differentials
Making Good Use of Out-of-State Relatives. Please respond to the following:
• Discuss how common you believe this scenario may be and give example(s) to support your answer.
• As a CPA, determine how you can protect your clients from future tax implications of attempting to avoid state sales tax.
Discovering Lost Dependency Exemptions. Please respond to the following:
• Discuss the key factors that should be considered when determining dependency exemption eligibility.
• Evaluate who should take the dependency exemption for Jesse and state how you know for certain.