A taxpayer paying his 10-year-old daughter $50,000 a year for consulting likely violates the constructive receipt doctrine.
This is further explained below.
<h3>What is
constructive receipt doctrine.?</h3>
Generally, When a money taxpayer receives gross income for federal income tax purposes, the theory of constructive receipt is applied to make this determination.
If a taxpayer has complete discretion over deciding when certain types of income will or should be paid, that person is liable for tax in the current year.
In conclusion, If a taxpayer gives his daughter, who is only ten years old, fifty thousand dollars a year for consulting work, the taxpayer has most certainly violated the constructive receipt law.
Read more about the constructive receipt doctrine.
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Answer:
The correct answer is A. One of the benefits of the current pattern of global trade is that consumers pay lower prices for goods and services.
Explanation:
Today, globalization has expanded international markets, interconnecting nations and their economies through free trade agreements, tariff elimination agreements and even through the transfer of companies from developed countries to peripheral countries, generating work in these nations and lowering production costs that allow reducing prices. All this allows consumers to access goods and services at a much lower cost than they previously accessed, thus reducing the amount they dedicate to consumption and thus increasing the performance of their wages, even allowing poverty reduction and a greater quality of life for people.
<span>Terry's employer withholds $85.80 in federal income tax by using the percentage method. This method states that is a single person's salary exceeds $645.00 per week they pay $81.90 plus 25% more for anything over $645.00. Based on the tax withholding, Terry makes $660.60 per week.</span>
The statement that is true among the choices given is option C. The presentvalue of money is greater than its future value. This statement is a fact and is always true. The present worth of a money is greater than its future value due to inflation. This is the principle called the time value of money.
