Is terry subject to self employment taxes on income

Assignment Help Accounting Basics
Reference no: EM13514908

Terry Hutchison worked as a self-employed lawyer until two years ago when he retired. He used the cash method of accounting in his business for tax purposes. Five years ago, Terry represented his client ABC corporation in an antitrust lawsuit against XYZ corporation. During that year, Terry paid self-employment taxes on all of his income. ABC won the lawsuit but Terry and ABC could not agree on the amount of his earnings. Finally, this year, the issue got resolved and ABC paid Terry $90,000 for the services he provided five years ago. Terry plans to include the payment in his gross income but because he spends most of his time playing golf and absolutely no time working on legal matters, he does not intend to pay self-employment taxes on the income. Is Terry subject to self employment taxes on this income?

Reference no: EM13514908

Questions Cloud

Determine the speed of the roller coaster : The track near the top of your favorite roller coaster has a circular shape with a diameter of 29 m. What is the speed of the roller coaster
What is joses cost basis for the delivery van : What is Jose's cost basis for the delivery van - Jose purchased a delivery van for his business through an online auction. His winning bid for the van was $24,500.
How to compute the ph of a solution prepared by mixing : Calculate the pH of a solution prepared by mixing 20.5mL of a 0.500M sodium fluoride solution with 32.5mL of a 0.750M hydrofluoric acid solution.
Compute the frequency of the fundamental on this string : A string 1.3 m long with a mass of 3.9 g is stretched between two fixed points with a tension of 93 N. Find the frequency of the fundamental on this string
Is terry subject to self employment taxes on income : Terry plans to include the payment in his gross income but because he spends most of his time playing golf and absolutely no time working on legal matters, he does not intend to pay self-employment taxes on the income. Is Terry subject to self emp..
Compute the value for r the radius of a nickel atom : In solid nickel the atoms are so tightly packed they touch each other. Using geometry and the equation 4r = a(2)1/2 and a = 3.524 calculate the value for r, the radius of a nickel atom. a. 2.27 b. 1.24 c. 3.9 d. 0.92 e. 4.7
Calculate the inner radius of the pipe : A copper [k = 390 J/(s·m·C°)] pipe with an outer radius of 0.014 m runs from an outdoor wall faucet into the interior of a house. Find the inner radius of the pipe
Explain the aldehyde carbon relative to benzaldehyde : Draw all of the resonance forms of 4-methoxybenzaldehyde which contribute to the reducwd electrophilicity of the aldehyde carbon relative to benzaldehyde.
How fast do you have to drive on the second half : Your average speed on the first half of a car trip is 75.0 km/h. How fast do you have to drive on the second half of the trip to achieve an average speed of 83.0 km/h for the whole trip

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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