What is the difference between taxable income and gross income?

June 30, 2024 No Comments

A: Gross income includes all of the income a person receives during a year that is not explicitly exempt from taxation, whereas taxable income is the amount of income that is actually subject to taxation, after all allowable deductions or exemptions have been subtracted from

Why is Singapore considered a tax haven?

June 30, 2024 No Comments

A: Singapore is considered a tax haven because of its low personal and corporate tax rates and other incentives for foreign investors. It levies 20% on personal incomes in the highest tax bracket, defined as incomes above 320,000 Singapore dollars, and does not tax capital

What is the difference in tax liability between gross income and other kinds of income?

June 30, 2024 No Comments

A: In the United States, gross income is taxed based on the federal income tax rate and state/local tax rates, although many states use “adjusted gross income” after a set of applied modifications. Other forms of income only exist as exclusions from gross income; in

Why is Switzerland considered a tax haven?

June 30, 2024 No Comments

A: Switzerland remains high atop the list of preferred tax havens due to its low taxation of foreign corporations and individuals. Although Switzerland is no longer a place to “hide” money due to pressure from the United States and the European Union (EU), it still

What is the purpose of a repatriated tax break, and why is it so controversial?

June 30, 2024 No Comments

A: In 2004, Congress passed the American Jobs Creation Act in an effort to boost the economy. One of the results of the act was the implementation of a repatriated tax break, which gave U.S. multinational corporations a one-time tax break on money earned in foreign

What is the tax impact of calculating depreciation?

June 30, 2024 No Comments

A: Depreciation is a method used to allocate the cost of tangible assets or fixed assets over the assets’ useful life. In other words, it allocates a portion of that cost to periods in which the tangible assets helped generate revenues or sales. By charting the

What taxes are due on money won gambling in Las Vegas?

June 30, 2024 No Comments

A: Every year, thousands of people travel to gambling hot spots such as the Nevada cities of Las Vegas and Reno with the hope of winning big in a casino. While most of these dreamers’ wallets are thinner on the return trip than when they arrived, a

When am I considered “married” for tax purposes?

June 30, 2024 No Comments

A: You are generally considered married for tax purposes as long as you were married as of the last day of the year, regardless of whether your marriage license has been issued. Your last name is a non-issue, as many married couples file jointly even

Where do deferred tax liabilities come from?

June 30, 2024 No Comments

A: A deferred tax liability is the result of differences in the way a company does its financial accounting for reporting purposes according to generally accepted accounting principles (GAAP) versus tax accounting. The deferred tax liability represents an obligation to pay taxes in the future.

Who needs to fill out IRS Form Schedule B?

June 30, 2024 No Comments

A: Taxpayers who receive more than $1,500 in taxable interest and/or ordinary dividends during the year are required to fill out IRS Form Schedule B, which accompanies IRS form 1040. Schedule B requires the taxpayer to provide the name of each payer (such as an investment firm or

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