Mr. Lim ran for a government position during the country’s 2019 elections. He received campaign fund donations in cash and in-kind amounting to Php100M. He spent a total of Php75M for campaign related expenses. What are the type of taxes involved in this scenario? Explain your answer. 2. Assume that the excess funds were remitted back to the donor, how much is the total tax due of Mr. Lim for the taxable year 2019? 3. Assume that the excess funds were kept by Mr. Lim, how much is the total tax due of Mr. Lim for the taxable year 2019?

Mr. Lim ran for a government position during the country’s 2019 elections. He received campaign fund donations in cash and in-kind amounting to Php100M. He spent a total of Php75M for campaign related expenses. What are the type of taxes involved in this scenario? Explain your answer. 2. Assume that the excess funds were remitted back to the donor, how much is the total tax due of Mr. Lim for the taxable year 2019? 3. Assume that the excess funds were kept by Mr. Lim, how much is the total tax due of Mr. Lim for the taxable year 2019?

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter12: Alternative Minimum Tax

Section: Chapter Questions

Problem 24CE

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Mr. Lim ran for a government position during the country’s 2019 elections. He received campaignfund donations in cash and in-kind amounting to 100,000,000. He spent a total of 75,000,000 forcampaign related expenses.a. What are the type of taxes involved in this scenario? Explain your answer. b. Assume that the excess funds were remitted back to the donor, how much is the total tax dueof Mr. Lim for the taxable year 2019?c. Assume that the excess funds were kept by Mr. Lim, how much is the total tax due of Mr. Limfor the taxable year 2019?
Marco made the following donations to his children in 2021: To Juan - Argicultural land in Nueva Ecija (Zonal value Php 5 Million; Assessed value Php 4 Million) made on January 31, 2021. To Clyde - New car worth 5 Million made on March 22, 2021. To Sevi - Cash in the amount of Php 5 Million made on April 19, 2021. How much is the donor’s tax to be paid on March 22, 2021?
Mr. Lim ran for a government position during the country’s 2019 elections. He received campaign fund donations in cash and in-kind amounting to Php100M. He spent a total of Php75M for campaign related expenses. Assume that the excess funds were kept by Mr. Lim, how much is the total tax due of Mr. Lim for the taxable year 2019?
Nicanor made the following donations to his children in 2021: To Jose – Agricultural land in Nueva Ecija (Zonal value Php 5 Million; Assessed value Php 4 Million) made on January 31, 2021. To Boni – New car worth Php 5 Million made on March 22, 2021 To Goyo – Cash in the amount of Php 5 Million made on April 19, 2021 1. How much is the donor’s tax to be paid on January 31, 2021? 2. How much is the donor’s tax to be paid on March 22, 2021? 3. How much is the donor’s tax to be paid on April 19, 2021?
If Lorna Da Ganda is a resident citizen and is earning compensation income and business income for 2018 with the following details: Compensation income of Php1,400,000 and Gross sales of Php2,800,000 and Cost of Sales of Php1,200,000 and Operating expenses of Php650,000 and Withholding tax on compensation income of Php310,000 and other creditable withholding taxes of Php80.000; how much is the income tax due and payable of Lorna Da Ganda for the year 2018? * Php184,000 O Php 212,000 Php 95,000 Php144,000
Mr. Josh participated in two different events on January 4, 2020: Ang mahiwagang boses P10,000. Sexy body foundation P11,000. Compute the total final tax that should have been withheld from the above prizes.
Vicki Vale operates a convenience store while at the same time offers bookkeeping services to her clients. In the year 2020, her gross sales amounted to Php1,800,000, in addition to her gross receipts from bookkeeping services of Php400,000. During the same year, her cost of goods sold and operating expenses were Php1,325,000 and Php320,000, respectively. How much is her taxable income assuming she availed of the optional standard deduction: a. Php1,320,000 b. Php720,000 c. Php160,000 d. Php525,000
Shafron, Inc. is a calendar year-end, cash method taxpayer. It provides consulting services for various clients in the local community. Shafron, Inc. had the following transactions in 2020. Determine the tax treatment for each transaction. For credit, you must round your answer to the NEAREST DOLLAR. Do NOT enter the dollar sign in your answer - only enter the numbers (e.g., X,XXX). For example, one thousand dollars should be entered as 1,000. Enter zero (i.e., “0”) where necessary. (a) On March 15, 2020, Shafron, Inc. received $30,000 from JBD, Inc. for business consulting services. Shafron, Inc. estimated the project will take 6 months and began working on the project on April 1, 2020. How much (if any) of the payment is included in Shafron, Inc.’s gross income? $ (b) Shafron, Inc. purchases an 18-month liability insurance policy. Per the contract with the insurance company, Shafron, Inc. paid the entire cost of the insurance coverage ($36,000) on November 1, 2020. The coverage…
In tax year 2023, a married taxpayer with AGI of $300,000 had gross investment income of $6,150 (which included a long-term capital gain of $3,500 and interest income of $2,650), brokerage commissions of $75, and tax preparation fees of $210. Calculate the amount of net investment income tax the taxpayer is required to pay? Please explain what would need be deducted.
A resident citizen has the following data in 2022:Gross receipts from services, P800,000Cost of services, P200,000Long term capital gain, P15,000Short term capital loss, P5,000Dividend from a domestic corporation, P15,000Interest income from bank deposits, P10,000Operating expenses, P20,000Assuming the taxpayer chooses optional standard deduction, how much is the taxable income? a. P500,000 b. P482,500 c. P364,500 d. P486,000
Ramon had AGI of $180,000 in 2019. He is considering making a charitable contribution this year to the American Heart Association, a qualified charitable organization. Determine the current allowable charitable contribution deduction in each of the following independent situations, and indicate the treatment for any amount that is not deductible currently. Identify any planning ideas to minimize Ramon’s tax liability. a. A cash gift of $95,000.b. A gift of OakCo stock worth $95,000 on the contribution date. Ramon had acquired the stock as an investment two years ago at a cost of $84,000.c. A gift of a painting worth $95,000 that Ramon purchased three years ago for $60,000. The charity has indicated that it would sell the painting to generate cash to fund medical research.d. Ramon has decided to make a cash gift to the American Heart Association of $113,000. However, he is considering delaying his gift until next year when his AGI will increase to $300,000 and he will be in the 32%…
During 2022, Matt and Jane paid the following amounts: • Federal income tax - $5,000 • State income tax - $4,000 • Real estate taxes on his home - $3,800 • State sales taxes - $600 • State license fee - $400. What amount can they deduct as state and local taxes by itemizing deductions, assuming they file as MFJ?