Answer the following statements true (T) or false (F)
1. Mr. and Mrs. Kusra are in the top tax bracket. They have just had a baby. The Kusras plan to gift a corporate bond they currently own to the baby. The bond pays $2,100 of interest income per year. The Kusra family overall will save taxes if the bond is transferred to the child.
2. Ivan Trent, age five, receive $2,900 of dividends per year from a mutual fund he owns; it is his only source of taxable income. Ivan's parents plan to gift a corporate bond they currently own to him. The bond pays $4,100 of interest income per year. Ivan's parents are in the 37% tax bracket. The individual income tax rate schedule that generally applies to a single taxpayer indicates a 10% tax rate until taxable income of $9,525. Ivan's family will save tax at the rate of 27% (37% - 10% tax rates) on the bond interest income if the parents transfer the bond to Ivan.
3. Generally, when a married couple files a joint return, each spouse is liable for one-half of the entire tax and any penalties incurred.
4. A taxpayer is able to change his filing status from married filing jointly to married filing separately by filing an amended return.
1. TRUE
Kiddie tax ramifications do not apply until the child has earned more than $
2. FALSE
The child is subject to kiddie tax because he already receives investment income in excess of the $2,100 threshold. The tax on the interest income from the bond owned by the child will increase to higher tax rates above taxable income of $2,550 under the tax rates effective under kiddie tax.
3. FALSE
Joint liability applies for the full tax.
4. FALSE
Taxpayers are not able to change their status from filing a joint return to separate returns, although they can change their status from separate returns to a joint return by filing an amended return.
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Brian offers to sell Jerry his house, but a hurricane destroys the house before Jerry accepts the offer. What would be the possible outcome of this offer?
A. If the offer is not revoked within a week after the incident took place, the offer is considered to be open and Jerry can claim the recovery charges. B. Jerry must be paid the recovery charges for losing the house as he had already been offered by Brian. C. A written statement must be produced to the court of law to terminate the offer. D. The offer is terminated when the house is destroyed as it happened without the knowledge or fault of either of the parties.
Answer the following statements true (T) or false (F)
1. When readers open a report, the first thing they see are the words. 2. The visual elements in a document may contradict the text and cause confusion. 3. Design principles are rules about visual communication that are used across many different jobs. 4. Decorative typefaces are appropriate for promotional documents.
In general, a balanced scorecard is used to evaluate an organization's performance using:
A. the Board of Directors' audit committee. B. standard costs and variance analysis. C. financial statements and ratio analysis. D. multiple financial and nonfinancial measures.
The marketing concept says that a firm should aim all its efforts at satisfying customers, even if this proves to be unprofitable.
Answer the following statement true (T) or false (F)