FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 1: Introduction to Taxation

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 31

Essay

Review LaterAdd Note

Review Later

Using the choices provided below, show the justification for each provision of the tax law listed. a.Economic considerations b.Social considerations c.Equity considerations d.Both a.and b. -A deduction for certain expenses (interest and taxes) incident to home ownership.

Correct Answer

verified

Show Answer

Question 32

True/False

Review LaterAdd Note

Review Later

On occasion, Congress has to enact legislation that clarifies the tax law in order to change a result reached by the U.S.Supreme Court.

A) True
B) False

Correct Answer

verified

Show Answer

Question 33

True/False

Review LaterAdd Note

Even if property tax rates are not changed, the amount of ad valorem taxes imposed on realty may not remain the same.

Under the usual state inheritance tax, two heirs, a cousin and a son of the deceased, would not be taxed at the same rate.

A safe and easy way for a taxpayer to avoid local and state sales taxes is to make the purchase in a state that levies no such taxes.

The ad valorem tax on personal use personalty is more often avoided by taxpayers than the ad valorem tax on business use personalty.

The tax law allows an income tax deduction (or a credit) for foreign income taxes.Explain why.

Briana lives in one state and works in the adjoining state.Both states tax the income she earns from her job.Does Briana have any relief from this apparent double taxation of the same income?

The Federal excise tax on cigarettes is an example of a proportional tax.

States impose either a state income tax or a general sales tax, but not both types of taxes.

A state income tax can be imposed on nonresident taxpayers who earn income within the state on an itinerant basis.

Which, if any, of the following taxes are proportional (rather than progressive) ?

Which, if any, of the following is a typical characteristic of an ad valorem tax on personalty?

Not all of the states that impose a general sales tax also have a use tax.

How do the net operating loss provisions in the tax law mitigate the effect of the annual accounting concept?

What are the pros and cons of the following state and local tax provisions? a.An ad valorem property tax holiday made available to a manufacturing plant that is relocating. a.Such a holiday is designed to attract new industry to the area.This will bring more jobs and growth in consumption.On the other hand, if the tax holiday is too generous, this places a strain on available public revenue.The result could b.Hotel occupancy tax and a rental car surcharge. c.A back-to-school sales tax holiday.

Federal excise taxes that are no longer imposed include:

Using the choices provided below, show the justification for each provision of the tax law listed. a.Economic considerations b.Social considerations c.Equity considerations d.Both a.and b. -A small business corporation can elect to avoid the corporate income tax.

No state may offer an income tax amnesty program more than once.

For Federal income tax purposes, there never has been a general amnesty period.