What is difference between a tax deduction and a tax credit

Assignment Help Taxation
Reference no: EM13905683

1. Why are some deductions called "above the line" deductions and others are called "below the line" deductions? What is the "line"?

2. What is the difference between a tax deduction and a tax credit? Is one more beneficial than the other? Explain.

Reference no: EM13905683

Questions Cloud

Find the frequency of the new fundamental : The fundamental frequency of a pipe that is open at both ends is 592 Hz. How long is this pipe?
What were the problems facing scientific glass inc : What were the problems facing Scientific Glass, Inc. in January 2010? How much external funding would have to been raised in 2010 in order to finance operations
Summarize two of the authors'' arguments : Summarize two of the authors' arguments
Perpetual inventory system-credit card transactions : Levine Company used the perpetual inventory system and allows customers to use two credit cards in charging purchases. With the Sunstrust Bank Card, Levine receives an immediate credit to its account when it deposits sales receipts. Prepare journal e..
What is difference between a tax deduction and a tax credit : Why are some deductions called "above the line" deductions and others are called "below the line" deductions? What is the "line"? What is the difference between a tax deduction and a tax credit? Is one more beneficial than the other? Explain.
Determine the altitude of the plane : By the time the plane's sound detector perceives the horn's sound, the plane has traveled a distance equal to one half its altitude above the ocean. If it takes the sound 2.44 s to reach the plane, determine the altitude of the plane. Take the spe..
Preparing companys leading antibiotic drug-basic wage rate : Helena Montana is employed by Northern Laboratories and is directly involved in preparing the company's leading antibiotic drug. Helena's basic wage rate is $22 per hour. The company pays its employees time and a half (i.e. 150%) for any work in exce..
What is the frequency of the tuning fork : Find the first four harmonics of a hollow pipe 30 cm long, open at both ends. Let v_sound = 340 m/s.
Draw a stack frame structure to show the caller frame : Draw a stack frame structure to show the caller frame P and the called frame Q - Which register stores Q's frame pointer after the stack frame for Q is created and what is the value stored in this register before the stack for Q was created?

Reviews

Write a Review

Taxation Questions & Answers

  Llcs income statement for the current year

Rock and Roll was the force behind such music icons as Rhiannon and Ulster and has had a very profitable year. The following information was taken from the LLC's income statement for the current year (2013):

  A companys income statement reported total income of 80000

a companys income statement reported total income of 80000 during 2010. the income tax return excluded a revenue item

  Congress recently enacted an non refundable credit based on

congress recently enacted an non refundable credit based on the cost of the qualifying alcohol and drug abuse

  Corporate tax return problem

CORPORATE TAX RETURN PROBLEM

  How this might affect tax planning and tax research

Tax law provisions change over time. Explain how this might affect tax planning and tax research.

  Calculate tax liability

Calculate tax liability.

  What is the companys total tax liability

1. Clinton Industries had $120,000 in taxable income in 2007. What is the company's total tax liability for the year?

  Advise jb of its fbt consequences

Advise JB of its FBT consequences arising out of the above information, including calculation of any FBT liability, for the year ending 31 March 2011.

  Part 1an individual partner is taxed on his or her share of

part 1an individual partner is taxed on his or her share of partnership income regardless of whether those amounts are

  What volume of revenues must a single client generate

What minimum revenue amount must any one segment generate to be of significant size torequire disaggregated disclosure?

  Calculate the capital gain under the 50% discount

Calculate the capital gain under the indexation method, calculate the capital gain under the 50% discount method and which method should be used in this case

  What are u.s. tax consequences of liquidation for winco

What are the U.S. tax consequences of this liquidation for Winco - How does the United States tax Erica's activities? How would your answer change if Erica were a self-employed technician rather than an employee?

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