Explain the impact on the calculation of tax liability

Assignment Help Accounting Basics
Reference no: EM13828086

After reviewing the scenario, explain the impact that the adjusted basis has on the calculation of tax liability, and propose at least two (2) tax-planning strategies for reducing, eliminating, or deferring the payment of capital gains taxes. Also, discuss other alternatives aimed at optimizing deductions or reducing taxes, such as selling the property to an unrelated third party which, in turn, allows losses to be deductible expenses.

Imagine that you are a tax consultant and a client needs your advice on how to reduce his tax liability on the sale of depreciable assets that have not been fully depreciated. The client has identified three (3) long-term depreciable assets and assumes that he will be able to pay capital gains taxes on the profit from their sale. It would be to your client's advantage to treat a taxable gain as long-term capital gain to which lower rates apply and a loss is categorized as an ordinary loss, which can offset ordinary loss, which can offset ordinary income. Discuss the treatment of gains and losses for Section 1231 and Section 1245 of the Internal Revenue Code, and recommend at least three (3) tax-planning strategies that would assist the client in reducing his tax liability. Provide support for your recommendations.

Reference no: EM13828086

Questions Cloud

Audit plan for the group of companies : Discuss and explain how the situation may affect your audit plan? Discuss and explain further information you consider necessary to obtain prior to finalising your audit program?
Evaluate the main premises of other religions : The US culture has a broad spectrum of religious affiliations and religiosity. As a result of interacting with people who share similarities, people seldom evaluate the main premises of other religions
Which place a ceiling on interest rates : Many states have usury laws, which place a ceiling on interest rates. Why do most economists dislike these laws - The paper's content is jumbled and is partially in second person and uses unusual wording together as if it was a machine translation..
Values of starbucks and how they connect with the strategy : values of Starbucks and how they connect with the strategy
Explain the impact on the calculation of tax liability : explain the impact that the adjusted basis has on the calculation of tax liability, and propose at least two tax-planning strategies for reducing, eliminating, or deferring the payment of capital gains taxes.
What is your own decision-making style : What is your own decision-making style? Describe this style and how you will apply it to future group work. How will you approach problem solving in the future based on what you have learned in this course? Describe your strategies and how you will a..
Computing probability of anticipating the demand for books : Compute the payoffs for each company's offer at each level of demand. Set up a payoff table indicating decision alternatives and states of nature, together with the amount the author would earn under each possible combination.
Difference between demings and crosbys approach : What is the difference between Deming's and Crosby's approach? How does Crosby plan to attain Zero Defects? How does Juran differ from Cosby?
Discusses about the policies and practices : What are the key policies, practices, business principles, and procedures that underlie how Howard Schultz and Starbucks' management have implemented and executed the company's strategy?

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  A venture capitalist facing two alternative investment

a venture capitalist facing two alternative investment opportunities. ensley company- variable cost per unit21.00 sales

  Panhandle medical practice activity-based costing panhandle

panhandle medical practice activity-based costing panhandle medical practice is a group practice owned by the areas

  Viking uses process costing all manufacturing costs

viking beer is a microbrewery that produces one type of beer. the production level is 18000 gallons per month which is

  Examine your companys cost classification for pricing of

examine your companys cost classification for pricing of the navigation system. defend your cost classification to u.s.

  The following data pertain to operations concerning the

the following materials standards have been established for a particular productnbspnbspstandard quantity per unit of

  The role of a chief administrative officer

the role of a chief administrative officer for a large non-profit health relief organization. A board of directors has requested that you prepare a summary of the issues about how to solve the health needs of an African country.

  If total assets increased 150000 during the year and total

at the beginning of the year sielert company had total assets of 800000 and total liabilities of 300000. answer the

  Social security benefits 6000 adjusted gross income 35000

social security benefits 6000 adjusted gross income 35000 tax exempt interest is 1000 married filing jointly. could

  Summarize the economic activities of business enterprise

The framework used to record and summarize the economic activities of a business enterprise is referred to as the accounting equation. State the basic accounting equation and define its major components.

  What should the balance sheet look like after the mortgage

what should the balance sheet look like after the mortgage is taken out? the before the mortgage balance sheet is in

  Absorption costing-flexible budget for signet jewelers

Prepare a flexible budget for next year for Signet Jewelers using three different growth rates (assume absorption costing). Explain how you determined the three growth rates to use (the low, the average, the high). Explain how you adjusted all other ..

  What are the limitations of using break-even point

What are the limitations of using break-even point and how would you incorporate this point with management strategic planning? 100-200 words please.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd