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In: Accounting
4 pages on are there ways to plan around the net investment income tax? add introduction,...
4 pages on are there ways to plan around the net investment income tax? add introduction, body and conclusion.
Solutions
Expert Solution
The NIIT is imposed by section 1411 of the Internal Revenue Code. The NIIT only applies to some net investment income at a 3.8 percent rate. It also only applies to people, trusts or estates that exceed the statutory threshold amounts. The NIIT first went into effect at the beginning of 2013. Although it went into effect in 2013 it did not apply to the 2012 tax year.
Net investment income includes the following:
- Interest
- Dividends
- Annuity distributions
- Rents
- Royalties
- Income from the passive activity
- Net capital gain from the disposition of property
Strategies for Reducing Exposure to Tax are as follows:
1.Sell securities with losses before year-end to offset gains during the year from the sale of securities.
2. Donate appreciated securities instead of cash to IRS-approved charities so that gains won’t be included on your return even though you will receive a tax deduction for the donation.
3.Use instalment sales or Section 1031 like-kind exchanges to either spread the gain recognition over several years or defer the gain on the sale of the property. These two strategies work best for investment real estate
ekkarill92 answered 10 months agoRelated Solutions
4 pages on are there ways to plan around the net investment income tax?
4 pages on are there ways to plan around the net
investment income tax?
Are there ways to plan around the net investment income tax? explain the 4 ways in...
Are there ways to plan around the net investment
income tax? explain the 4 ways in 4 paragraph
Write an introduction of the new tax plan
Write an introduction of the new tax plan
write an introduction about the new tax plan
write an introduction about the new tax plan
true or false 1-in 2015 taxpayers pay an additional 3.8% tax on their net investment income...
true or false
1-in 2015 taxpayers pay an additional 3.8% tax on their net
investment income ?
2-gross income does not include social security benefits
received by the taxpayers ?
3-return of capital distribution generally are included in the
recipient gross income ?
4- payment for child support are not included in gross income of
the recipient custodial parent ?
5- a taxpayer who receives payment for mowing lawns must include
them in gross income ?
6- the buyer of...
Income tax rates schedule “ (1) for the Personal Income Tax Net income which does not...
Income tax rates schedule “ (1) for the Personal Income Tax Net
income which does not exceed 300,000 baht 5 percent Net income
which only the amount in excess of 300,000 baht
but not exceeding 500,000 baht 10 percent Net
income which only the amount in excess of 500,000
baht but not exceeding 750,000
baht 15 percent Net income which only the amount
in excess of 750,000 baht but not
exceeding 1,000,000 baht 20 percent Net income which
only the...
Q) Make a Contemporary Issues Report , must be 3 to 4 pages containing a. Introduction...
Q) Make a Contemporary Issues Report , must be 3 to 4 pages
containing
a. Introduction (definition of contemporary issues and selected
subjects)
d. Contemporary Issues List (at least 5 new subjects)
e. Selected Subject Explain with a Conclusion (at least four
pages).
f. References
please with some research fulfill all the above mentioned needs
and make a proper report with headings.
THANKYOU
TOPIC :- Abortion
Essay on Genetic Modification of food , 4-5 pages add sources (8-10)
Essay on Genetic Modification of food , 4-5 pages add sources
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Exhibit 1 Flight Plan Consulting, Inc. Sales and Earnings Trend Year Sales Net Income After-Tax...
Exhibit 1
Flight Plan Consulting, Inc.
Sales and Earnings Trend
Year
Sales
Net Income After-Tax
EPS
1992
$2,000,000
$240,000
$0.60
1993
2,750,000
338,000
0.84
1994
3,200,000
384,000
0.96
1995
5,000,000
575,000
1.44
1996
5,700,000
600,000
1.50
1997
6,200,000
713,000
1.78
1998
7,300,000
803,000
2.00
1999
8,500,000
860,000
2.15
2000
9,100,000
900,000
2.25
2001
10,300,000
912,720
2.28
Exhibit 2
Flight Plan Consulting, Inc.
Balance Sheet
December 31, 2001
($000’s)
Current Assets
$1,500
Current Liabilities
$400
Fixed Assets
1,500
Long-Term Debt...
Exhibit 1 Flight Plan Consulting, Inc. Sales and Earnings Trend Year Sales Net Income After-Tax...
Exhibit 1
Flight Plan Consulting, Inc.
Sales and Earnings Trend
Year
Sales
Net Income After-Tax
EPS
1992
$2,000,000
$240,000
$0.60
1993
2,750,000
338,000
0.84
1994
3,200,000
384,000
0.96
1995
5,000,000
575,000
1.44
1996
5,700,000
600,000
1.50
1997
6,200,000
713,000
1.78
1998
7,300,000
803,000
2.00
1999
8,500,000
860,000
2.15
2000
9,100,000
900,000
2.25
2001
10,300,000
912,720
2.28
Exhibit 2
Flight Plan Consulting, Inc.
Balance Sheet
December 31, 2001
($000’s)
Current Assets
$1,500
Current Liabilities
$400
Fixed Assets
1,500
Long-Term Debt...
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