Personal Tax Implications: Case Study

The Nunavut payroll tax is withheld from employee’s remuneration in Nunavut (regardless of province of residence or province of employment), includes all salaries, wages, taxable benefits, and allowances. However employees annually remuneration more than $5000 while working in Nunavut, that subject to 2% payroll tax. If employee has more working hours in Nunavut than other place of employment, all employee’s income is subject to the 2% payroll tax.

Inventory Method: The inventory amount for the year ended 12/31/2016 is $14,760,000,000 which is an $759,000,000 increase from the previous year. CVS uses the lesser of the weighted average cost or market value when determining the value of inventory. Inventory is verified for accuracy by regularly doing physical counts in all locations. Between physical counts, CVS uses sales results from previous years to accrue the estimated physical loss. These estimates are determined for each individual store and warehouse separately to ensure the most accurate information possible is reported. CVS has decided to use a new method available after annual periods beginning after 12/15/2016 known as the lower of cost and net realizable value to replace using

e) Yes, there may be an indirect benefit to John if he makes a $15,000 investment into Jane's business if John and Jane file “Married filing jointly tax return”. Jane must use the $15,000 for business deductible purchases. If the money sits in the bank it will not provide a tax benefit.

Peyton Approved accounting cycle comprises of the following steps– transactions, journal entries, posting, trial balance and worksheet, adjusting journal entries, financial statements and closing of the books (Tarver, E, 2106). As a new company up and coming we have to make sure our payables, receivables, bank recs and all sales have been noted. Also making sure that wages or expenses that are accrued are recorded. We have found that these steps are instrumental as a company when it’s time to prepare our

The couple can exclude the full $296,000 gain since they are filing jointly and per the IRS can exclude up to $500,000.

From a tax planning perspective, more details would have to be known about the Ouray’s expenses in order to determine the best course of action. To address the original question of ability to file head-of-household, Brett is unable to, because he is still married and living in same household as his

The recommended tax filing status for this family is Married Filing Jointly. The reason I would recommend this filing status is that there are three children that are qualifying children, but the college freshman is not under the age of 17 so that child does not qualify for the child tax credit. Spouse B’s

A. Filing Status:  There are two choices of filing status available to this taxpayer couple, married filing separately and married filing jointly. For this taxpayer couple the recommended filing status is married filing jointly. The tax rates would be higher if they filed separately. Additionally, some deductions (e.g. tuition and student loan interest), credits (e.g. Earned Income Credit) and exclusions would not be allowed if they filed separately. Since they sold a personal residence during this tax year, they will be able to exclude up to $500,000 profit from the sales as joint filers rather than only up to $250,000 if filing separately. There will be 2 qualified personal exemptions and 3 exemptions for the 3

John and Janet Baker are married and maintain their home where Janet’s parents Calvin and Florence Carter, their son Darin, and their daughters Andrea and Morgan also live. The Carters are retired and received $19,000 a year which is not taxed. The Carters equally spent $8,000 between them for cloths, transportation expenses, and a vacation. They invested the remaining $11,000 in tax-exempt securities. Janet Baker paid $1,000 on her mother’s dental work and also paid her father’s life insurance premiums of $1,200. Darin, the Baker’s 18-year old son is not a full-time student but earned $14,000 from a

Part V: Discuss how income and distributions may/will be allocated to Penelope, Mark and John. Profits are shared equally or by percentage ownership if that is how you divide the company ownership.

Separate ledgers are held in Xero for you to view at any time, these are accounted for in the end of month reports produced

To be able to give Accounting Technology students quick reference when it comes to Income Statements.

b. Trace the line item “Balance per Bank Statement” – Accuracy and Existence (AU-C 315.A114 a-iii, b-i)

* Level of completion of the transaction at the balance sheet date can be assessed;

Future or deferred tax is recognised on the future tax payable on the assets and liabilities which are shown in the ‘statement of financial position’ at the end of the financial period.