Income Tax Essays (Examples)
Study Document
Taxation IRAs 401Ks And The IRS
… and Qualified Plans
1. A simple IRA has both advantages and disadvantages when compared to a qualified plan like a 401K. Both are tax-deferred savings accounts, but where the differences lay could matter for a company like 3P. These two types of plan are mutually exclusive – … these two plans are fairly similar for most people, but the differences can affect those at the high and low ends of the income spectrum. Younger workers will appreciate the lack of age limits on the simple IRA, and the owners/executives might as well. However, if Paula ……
References
References
Appleby, D. (2019) Simple IRA vs Simple 401K: What’s the difference? Investopedia. Retrieved April 2, 2020 from https://www.investopedia.com/articles/retirement/04/060904.asp
IRS.gov (2020) Retirement topics – IRA contribution limits. Internal Revenue Service. Retrieved April 2, 2020 from https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-limits
IRS.gov (2020) Contribution and deduction limits. Internal Revenue Service. Retrieved April 2, 2020 from https://www.irs.gov/retirement-plans/plan-participant-employee/2020-ira-contribution-and-deduction-limits-effect-of-modified-agi-on-deductible-contributions-if-you-are-covered-by-a-retirement-plan-at-work
Study Document
Digital Era And Taxation
To Choose an Accounting Topic That Would Be Excellent for A Dissertation.
Research Topic
tax in the digital era is an excellent topic for a dissertation because there is an ongoing debate on whether digital companies are paying … is an excellent topic for a dissertation because there is an ongoing debate on whether digital companies are paying their fair share of tax. Some tax experts believe that digital companies enjoy tax levels close to zero compared to traditional companies, yet they earn huge profits. The underlying principle of corporate tax is that \"profit should be tax where value is created\" (Sestakova, 2018). However, digitalization challenges this principle because of it difficult to pin down how and where digital companies … assets, big data, and which is hard to value (Sand- Zantman, 2018). Given this fact, there is a need to research problems that tax accountants face when tax digital……
References
References
Committee of Experts on International Cooperation in Tax Matters. (2019). Tax Issues related to the Digitalization of the Economy: Report (E/C.18/2019/CRP.12). https://www.un.org/esa/ffd/wp-content/uploads/2019/04/18STM_CRP12-Work-on-taxation-issues-digitalization.pdf
Katz, R. (2015). THE IMPACT OF TAXATION ON THE DIGITAL ECONOMY. https://www.itu.int/en/ITU-D/Conferences/GSR/Documents/GSR2015/Discussion_papers_and_Presentations/GSR16_Discussion-Paper_Taxation_Latest_web.pdf
Pemerathna, A. (2016). Economic impact of digital taxation: A case on information communication technology industry Sri Lanka. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2910328
Sand-Zantman, W. (2018). Taxation in the Digital Economy. https://www.orange.com/fr/content/download/47110/1371114/version/1/file/Rapport%20TAXATION-VF-Mai2018.pdf
Sestakova, M. (2018, February). Tax Challenges of the Digital Economy [Paper presentation]. Management Challenges in the 21st Century, Bratislava, Slovakia.
Study Document
What Business Entity Structure Should Be Used
… of challenges, including the reality that his legal downside includes his personal property. Maintaining his business as a sole proprietorship will also have tax and timing implications for when he wants to pass the business on to his daughter. Therefore, the sole proprietorship should be a non-starter. … the option of S and C corporations, and there are specific implications for each of these.
An S corporation elects to “pass corporate income, losses, deductions and credits through to their shareholders for federal tax purposes” (IRS.gov, 2020). The company is eligible to be an S corporation, as it meets the criteria that the IRS has laid out. … of legal action would be worse, but an S corporation would at least defend Mandy against that. However, she would have to pay tax on her share of the profits of the dealership, even if she herself earned no cash and the……
References
References
IRS.gov (2020) S corporations. Internal Revenue Service. Retrieved April 12, 2020 from https://www.irs.gov/businesses/small-businesses-self-employed/s-corporations
Morah, C. (2020) Accrual accounting vs cash basis accounting: What’s the difference? Investopedia. Retrieved April 12, 2020 from https://www.investopedia.com/ask/answers/09/accrual-accounting.asp
SBA.gov (2020) Selling a small business and succession planning for small business. Small Business Association. Retrieved April 12, 2020 from https://www.sba.gov/sites/default/files/files/PARTICIPANT_GUIDE_SELLING_SUCCESSION_PLANNING.pdf
Study Document
Integrated Waveguide Technologies Preparing For A Public Offering
… year, interim dividends, or at the end of a financial year referred to as the final dividend. Dividends account as a source of income for the investors but also have an information signaling effect. Therefore, a dividend distribution is informing the management of the earnings to allocate … contribute to sharing purchase investment decisions. Dividend distribution policy is informed by multiple factors such as financial flexibility, investment opportunities for the company, tax consideration, contractual and legal restrictions, the volatility of expected future earnings, and flotation costs (Baker & Weigand, 2015).
Dividends may be distributed in … & Weigand, 2015).
Dividends may be distributed in the form of stock repurchases or cash dividends. Cash dividends offer investors a stream of income. Stock repurchases entail the buyback of a firm shares. Stock repurchases are employed as a strategy for managing a company's real earnings. Moreover, … occasional repurchases with firms that……
References
References
Al-Malkawi, H.-A. N., Rafferty, M., & Pillai, R. (2010). Dividend Policy?: A Review of Literatures and Empirical Evidence. International Bulletin of Business Administration, 5(9), 38–45. https://doi.org/10.12816/0037572
Baker, H. K., & Weigand, R. (2015). Corporate dividend policy revisited. In Managerial Finance (Vol. 41, Issue 2, pp. 126–144). https://doi.org/10.1108/MF-03-2014-0077
Black, F., & Scholes, M. (2010). The effects of dividend yield and dividend policy on common stock prices and returns. In Journal of Financial Economics (Vol. 1, Issue 1, pp. 1–22). https://doi.org/10.1016/0304-405X(74)90006-3
Farre-Mensa, J., Michaely, R., & Schmalz, M. (2014). Payout Policy. Annual Review of Financial Economics, 6, 75–134.
Mohanasundari, M., & Vidhya, P. (2016). Dividend Policy and Its Impact on Firm Value: A Review of Theories and Empirical Evidence. Journal of Management Sciences and Technology, 3(3), 59–69.
Travlos, Trigeorgis, & Vafeas. (2001). No Title. Multinational Finance Journal, 5(2), 87–112.
Study Document
Evolving Public Interpretation Of Gentrification
… of gentrification that have been highlighted by the mainstream media. For instance, according to Duany, “These days, whenever more than a handful of middle-income people move into a formerly down-at-the-heels neighborhood, they are accused of committing that newest of social sins: ‘gentrification’” (36).
Not surprisingly, this negative … around the nation have developed approaches to encourage investment and avoid displacement. For instance, New York City offers caps or breaks on property tax for longtime residents. This is known as a homestead exemption, and it is often offered to help the elderly on fixed income remain in their homes even while their home values increase.
Additionally, local governments have found more ways to help people stay rooted in … provide renters with the opportunity and financing to purchase their units; preserve and expand public housing; protect elderly and long-term residents from property tax increases; enforce building codes and offer easy……
References
Bibliography
Anderson, Elijah. 1990. Streetwise. Chicago: Univ. of Chicago Press.
Betancur, John J. “Gentrification in Latin America: Overview and Critical Analysis.” Urban Studies Research 37-41.
Berrey, Ellen C. 2005. Divided over diversity. City & Community 4 (2): 143-70
Black’s Law Dictionary. 1990. St. Paul, MN: West Publishing Co.
Bostic, Raphael W., and Richard W. Martin. 2003. Black home-owners as a gentrifying force? Urban Studies 40 (12): 2427-49.
Brown-Saracino, Japonica. 2004. Social preservationists and the quest for authentic community. City & Community 3 (2): 135-56.
Brummet, Quentin, and Davin Reed. “The Effects of Gentrification on the Well-Being and Opportunity of Original Resident Adults and Children.” Working Paper (Federal Reserve Bank of Philadelphia), 2019.
Capps, Kriston. “The Hidden Winners in Neighborhood Gentrification.” CityLab, July 22, 2019.
Study Document
Capital Structure Analysis
… discussed below.
Trade-off Theory
This theory suggests that managers should choose a mix of debt and equity that achieves a balance between the tax advantages of the debt and the various costs of using financial leverage. Costs of debt include agency costs, bankruptcy costs, and loss of … of debt include agency costs, bankruptcy costs, and loss of future financing flexibility. A firm is allowed to deduct interest expenses form gross income when determining tax income. So, debt reduces tax. On the other hand, when a firm uses equity, they are not allowed to deduct dividends from gross income to determine tax income. The tax benefit from interest payments is calculated as follows: tax benefit = tax rate * Interest Payments.
Bankruptcy costs is a function of the cost of going bankrupt and the probability of bankruptcy. Firms with volatile ……
References
References
Estimating a synthetic rating and cost of debt. (n.d.). Retrieved from http://pages.stern.nyu.edu/~adamodar/New_Home_Page/valquestions/syntrating.htm
Fenebris.com. (2019, August 18). AU. Retrieved from http://www.market-risk-premia.com/au.htmlm
Intelligent Investor. (n.d.). FlexiGroup Limited. Retrieved from https://www.intelligentinvestor.com.au/shares/asx-fxl/flexigroup-limited/financials IntelligentInvestor.com. (n.d.). Afterpay Touch Group Limited. Retrieved from https://www.intelligentinvestor.com.au/shares/asx-apt/afterpay-touch-group-limited/financials
Yahoo Finance. (n.d.). FLEXIGROUP FPO (FXL.AX) Balance Sheet. Retrieved from https://finance.yahoo.com/quote/FXL.AX/balance-sheet?p=FXL.AXhttps://finance.yahoo.com/quote/FXL.AX/balance-sheet?p=FXL.AX
Study Document
Risk Management And Insurance
… current securities value accumulated by a client by the outstanding number of accumulation units.
Q4
Just like in life insurance, annuities’ earned investment income during the period of accumulation is not tax. tax happens only when the income is disbursed. The disbursed amount is tax on the basis that the payment made is in excess of the investment made in the contract. Further, an early withdrawal of an ……
References
References
Vaughan, E. J., & Vaughan, T. (2007). Fundamentals of risk and insurance. John Wiley & Sons.
Study Document
Net Worth Theory And Corporate Fraud
… (2006) points out that the net worth method is among the most common used in accounting forensics when it comes to detecting illegal income, such as by way of money laundering. The case of Danske Bank and its money laundering escapades from 2007 to 2015 through an … investigate this corporate fraud.
As Schwab (1961) states, the net worth theory rests upon the idea that if one’s net increase exceeds the income reported, the corporation has understated its income; additionally, “if there is no increase in net worth but if the tax has expended larger amounts than his reported income on nondeductible items, there has been an understatement of income” (p. 78). With Danske Bank, billions were passing through its Estonian branch from several different sources in dozens of different currencies. If net … the equity of the firm and move on from there. With Danske Bank, the increase……
References
References
IRS. (2017). Retrieved from https://www.irs.gov/irm/part9/irm_09-005-009
Madlinger, J. (2006). Money laundering: A guide for criminal investigators. CRC Press.
Milne, R. & Winter, D. (2018). Danske: anatomy of a money laundering scandal. Retrieved from https://www.ft.com/content/519ad6ae-bcd8-11e8-94b2-17176fbf93f5
Schwab, R. D. (1961). The Civil Aspects of the Net Worth Method. Wm. & Mary L. Rev., 3, 65.
Study Document
How Interest Rates Compare Over The Last Decade Within The United
...Income tax Interest rates form the basis for valuation models around the world. They are used in almost every industry, country, and geography. Interest rates can also influence corporate and consumer behaviors. For example, depending on the inherent risk of a consumer, credit card rates determine how much an individual must pay on a month basis to the financial institution. Corporations looking to borrow funds to expand their market share must consider the variable interest rates being changed and their ability to service the debt. Even governments must be mindful of the extent of their borrowers and the corresponding impact of interest rates on their ability to services the debt. Due primarily to their importance in key elements of human civilization, interest rates are a closely watched tool by individual investors, general consumers, and corporations. Banks in particular are heavily influenced by the change in interest rates as they operate as financial……
References
References
1. Goodhard, C and E Perotti, 2008 “Maturity mismatch stretching: Banking has taken a wrong turn”, CEPR Policy Insight 81, 6-July
2. Holston, Laubach, and Williams. 2017. “Measuring the Natural Rate of Interest: International Trends and Determinants,” Journal of International Economics 108, supplement 1 (May): S39–S75
3. Laubach and Williams. 2003. “Measuring the Natural Rate of Interest,” Review of Economics and Statistics 85, no.4 (November): 1063-70.
4. Rachel, L. and Smith, T.D., 2017. Are low real interest rates here to stay?. International Journal of Central Banking, 13(3), pp.1-42.
5. Schularick, M, and A M Taylor, (2009), “Credit Booms Gone Bust: Monetary Policy, Leverage Cycles and Financial Crises, 1870-2008”, NBER DP 15512
6. Stock, J.H. and Watson, M.W., 2007. Why has US inflation become harder to forecast?. Journal of Money, Credit and banking, 39, pp.3-33
Study Document
Financial Planning
… save up cost and have a promising rate of return with lesser risk. These returns can be saved up or re-invested with a tax free IRA, again assisting their financial goals.
Through Chris and Dayna, having better job opportunities, and a raise over time, they will have … the relaxation that you have planned and allocated funds for the future. The retirement plan given above is cost-effective and takes into consideration tax benefits, it is the optimal and effective plan that will help Chris and Dayna after they retire after 22 years. It’s better to ……
References
References
Doyle, A. (2019, May 14). How much is the average wage in America. The Balance Careers. Retrieved from https://www.thebalancecareers.com/how-much-is-the-average-raise-in-america-4582795
Solution, I. D. (n.d.). How To Set Financial Goals: 6 Simple Steps. InCharge Debt Solution.
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