Question

In: Accounting

1.The Tax Cuts and Jobs Act of 2017 reduced the corporate income tax rate to a...

1.The Tax Cuts and Jobs Act of 2017 reduced the corporate income tax rate to a 21% flat rate.

True

False

2. The Tax Cuts and Jobs Act of 2017 eliminated the child tax credit.

True

False

3. A taxpayer can deduct pass-through losses on his Form 1040. However, he must pass all these limitations in order to deduct the losses, except the

A.basis limitation.

B.the limitation on the number of children he has.

C .at-risk limitation.

D.passive loss limitation.

Solutions

Expert Solution

Q.1 Ans > True

The Tax Cut and Jobs Act (TCJA) 2017 reduced the top corporate income tax rate from 35 percent to 21 percent,    bringing the US rate below the average for most other Organisation for Economic Co-operation and   Development countries, and eliminated the graduated corporate rate schedule (table 1). TCJA also repealed the corporate alternative minimum tax.

Q.2 Ans > False

  When the Tax Cuts and Jobs Act was signed into law on December 22, 2017, it upended the U.S. tax code in a lot of ways. The dust is still settling, and that can make it a little challenging to prepare your return for tax year 2018 in 2019. One big change affects the Child Tax Credit.

The credit wasn’t eliminated by the TCJA as several other tax perks were; it was actually improved upon somewhat. New rules apply from tax year 2018 through tax year 2025. They'll affect the tax return you’ll file in 2019 for the 2018 tax year.

Q.3 Ans > B. the limitation on the number of children he has.

A taxpayer can deduct pass-through losses on his Form 1040. However, he must pass all these limitations in order to deduct the losses, except the limitation on the number of children he has.


Related Solutions

The Tax Cuts and Jobs Act of 2017 is a major overhaul of the tax codes...
The Tax Cuts and Jobs Act of 2017 is a major overhaul of the tax codes in nearly three decades: it has generated a lot of debates on its potential impacts on economic growth, budget and sustainability, and equality and fairness etc. For our purpose, focus your discussion on the corporate side: What would be possible impacts of some of the specific provisions on the corporate FCF, WACC, and Valuation? What would be the possible impacts of some of the...
Discuss the economic impact of the Tax Cuts and Jobs Act of 2017 (TCJA) on: 1....
Discuss the economic impact of the Tax Cuts and Jobs Act of 2017 (TCJA) on: 1. U.S. corporations. 2. U.S. economy 3. Other countries including tax havens
In December 2017, the US senate passed the tax cuts and jobs act of 2017. The...
In December 2017, the US senate passed the tax cuts and jobs act of 2017. The act is effectively altering the rate of taxation for individuals and businessss. Describe the potential effects of this major tax reform on the US further economic growth. Use markets for loanabke funds and foreign currency exchange in your answer.
In December 2017, the U.S. Senate passed the Tax Cuts and Jobs Act of 2017. The...
In December 2017, the U.S. Senate passed the Tax Cuts and Jobs Act of 2017. The act is effectively altering the rate of taxation for individuals and businesses. Describe the potential effects of this major tax reform on the the U.S. future economic growth. Please include examples from markets for loanable funds and foreign currency exchange.
You will need to reference the Tax Cuts and Jobs Act of 2017 (Links to an...
You will need to reference the Tax Cuts and Jobs Act of 2017 (Links to an external site.) to solve the questions in this assignment. The questions below also rely on the following assumptions: You file your taxes as a single filer. Your only taxable source of income is wage income. In 2017 you earned $100,000 of gross wage income. In 2017 you claimed one personal exemption. In 2017 you claimed itemized deductions of $10,000. Calculate the amount of federal...
You will need to reference the Tax Cuts and Jobs Act of 2017 (Links to an...
You will need to reference the Tax Cuts and Jobs Act of 2017 (Links to an external site.) to solve the questions in this assignment. The questions below also rely on the following assumptions: You file your taxes as a single filer. Your only taxable source of income is wage income. In 2017 you earned $100,000 of gross wage income. In 2017 you claimed one personal exemption. In 2017 you claimed itemized deductions of $10,000. A) Calculate the amount of...
5 page for Qualified Business Income (QBI) under the 2017 Tax Cuts and Jobs Act (TCJA)...
5 page for Qualified Business Income (QBI) under the 2017 Tax Cuts and Jobs Act (TCJA) give me a nice introduction and conclusion not accept handwriting, the only acceptable type document
As a result of the tax cuts and jobs act of 2017, there are now due diligence requirements for
As a result of the tax cuts and jobs act of 2017, there are now due diligence requirements for
Prior to the passing of the Tax Cuts and Jobs Act (2017) some of America’s largest...
Prior to the passing of the Tax Cuts and Jobs Act (2017) some of America’s largest corporations were able to apply questionable, yet legal, schemes to book profits in offshore accounts to avoid (not evade) higher levels of tax expense. These tax savings were substantial, it is estimated multinational corporations had been able to avoid an estimated $90 billion in federal income taxes each year. Scenario: The Board of Directors, shareholders, and stakeholders are just now learning that the corporation...
True or False? The 2017 Tax Cuts and Jobs Act will make it more costly for...
True or False? The 2017 Tax Cuts and Jobs Act will make it more costly for individuals to properly file their annual income taxes, but will likely increase charitable giving?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT