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In-s [12.5K]
3 years ago
15

If a cash basis business owner pays 18 months of rent expense in advance during the last month of the tax year, how is this trea

ted on the tax return? What is the reason tax law requires this treatment?
Business
1 answer:
borishaifa [10]3 years ago
7 0

Answer:

Check the following consideration

Explanation:

Since the business owner follows cash basis of accounting the treatment is amount expensed during the financial year can be shown as expenses. hence in the current case rent for 18months can be shown as expenses for that financial year and it can be shown as a deduction while computing tax liability.

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The Quarter Burger is a hamburger sold by the international fast-food chain Sammy's Burgers. It was given the name because it co
timama [110]

Sammy's quarter-pound burger is positioned by: price-quality

<u>Explanation:</u>

The price-quality way of positioning practices the similarity within price and quality before-mentioned that it optimally values a commodity according to the feature of the commodity to retain the commodity hovering in the customer's perception. Pricing does not necessitate to be huge for more leading positioning.

Marketers frequently do price/ quality properties to locate their trademarks. Although the price is an essential factor, the commodity quality must be tantamount to, or indeed more reliable than, fighting trademarks for the positioning strategy to be active.

8 0
3 years ago
describe the two eligibility requirements to qualify for deducting losses generated from real estate activities.
Zolol [24]

Two exceptions to the special passive activity rule for real estate activities provide the whole or partial offset of real estate rental losses against active or portfolio income, even when the business is otherwise regarded as a passive activity.

<h3>Which rules regarding passive activities for rental revenue are exceptions?</h3>
  • You have a stake in the yearly commerce or economic activities.
  • During the current tax year or at least 2 of the 5 tax years prior, the rental property was utilized primarily in that trade or company.
<h3>Only real estate is subject to passive loss restrictions, right?</h3>

Generally speaking, the following actions can result in passive losses (and income): leasing of equipment. Rental property (though there are some exceptions) a farm or a sole proprietorship in which the taxpayer has no substantial interest.

<h3>How can passive income be balanced?</h3>

Selling off your rental properties will help you make up for your passive losses. You don't actually have to sell the property that's causing the losses to balance them effectively. Any passive income will be offset by losses.

Learn more about special passive activity rule: brainly.com/question/28137310

#SPJ4

7 0
1 year ago
In a 1953 speech, President Dwight Eisenhower listed some things that cost about as much as "one modern heavy-duty bomber": a mo
jarptica [38.1K]

Answer: In Dwight Eisenhower's speech the key points he was trying to make were <em>using scarce resources involves trade offs </em>and the <em>United States government only had so much money.</em>

The correct answers are A and B.

Explanation:

The speech that was given by Eisenhower in 1953 was called "The Change of Peace." He states in this speech that if there is a danger that exists anywhere in the world, then it is shared by all the people. He goes on state that hope should be equally shared by all the people. He then speaks about atomic warfare and atomic bombs and how the U.S and Russia knows the secrets to atomic bombs.

5 0
3 years ago
Which is the difference between static storage systems and dynamic storage systems
arlik [135]

Answer:

In a static storage area each product is assigned a specific area, whereas in dynamic storage, product locations and fluid and as such are subject to change.

3 0
3 years ago
The graph above shows how the price of video games varies with the demand quantity. Suppose that the price of video games is set
ira [324]
Price floor.
A floor, in real life, is at the bottom, below you — this then makes sense in business to say that a ‘floor’ represents the minimum value of something — in this case the price of video games.
In real life, a ceiling is above you, indicating that it could be used as a representative of a maximum value of something, like the price of a video game.

So, if we were to say that $120 was the ‘price ceiling’ for video games, then we would basically be saying that $120 is the most a video game could cost. If we were to say that $100 was the ‘price floor’ for video games, we would be saying that $100 is the minimum value that the price of a video game could assume.
6 0
3 years ago
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