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Per Fi Ch. 12 St. Gd
Test on Thursday, Begin to study this and Vocabulary Stack for prep.
Question | Answer |
---|---|
Personal Property tax can be taken on what types of property? | Houses, cars, boats, etc. |
How much does the value of a gift have to be over before a gift tax is taken by the Federal government? | Over $10,000 |
Municipal bond interest is usually... | tax-exempt |
If you are self-employed, you will be issued a penalty if you... | pay less than 90% of last year's tax liability and if you fail to pay the quarterly taxes on or before the due date for filing taxes. |
An IRA earns money that is.... | tax-deferred |
A person would want to use a 1040 tax return form if... | he or she takes many itemized tax deductions |
What is a tax credit subtracted from? | taxes owed |
What is a tax deduction subtracted from? | taxable income |
Money that is donated to charities can be claimed as an itemized tax deduction up to what percent of person's income | 20% |
Exclusions are not included in... | gross income |
What are the tax planning strategies to minimize future income tax? | Consumer spending, Investment planning, Retirement planning |
How can consumer spending be planned in order to reduce taxes? | Mortgages, business tools, travel expenses, and some educational expenses can be tax-exempt or you can claim tax deductions for those expenses. If you record these expenses accurately you can reduce your taxes. |
How can investments help you reduce your taxes? | Municipal bond interest is tax-exempt and therefore you don't have to claim it on your taxable income and therefore reducing your total tax liability. |
What are some ways to have a successful audit interview? | Be prepared with only the records needed in an organized system, be confident in your answers with clear and concise answers, know exactly what parts of the return are in question |
How can you be well-prepared for this test on Friday other than studying this study stack? | Study the vocabulary stack for Ch. 5 as well. |