$20 Bonus + 25% OFF +
5
%
Cashback
information
Securing Higher Grades Costing Your Pocket? Book Your Assignment at The Lowest Price Now!

Questions:

1. Does Femme really have to file Federal income tax returns and pay Federal income taxes, or is Femme’s coworker who refills the water coolers and vending machines correct that filing income taxes is voluntary since taxpayers can refuse to pay income taxes based on moral grounds by invoking the First Amendment. Why or why not?
2. Besides the Federal income tax, what other taxes will Femme pay on Femme’s Old School Software Inc. wages, and on Femme’s earnings from Killer I App, Inc.?
3. Between Short Term Capital Management and Buy And Hold Forever Investment Management, which is the better investment? Why?

 

Answer:

1. According to the provisions of Taxation in United States of America, taxes are to be paid by the individuals on their net income that is determined by following the tax accounting methods. Further, the individuals are required to file Federal income tax returns on making payment for taxes computed on their net income. As per the rules, tax payer assesses are required to pay taxes on income from business, income from property, capital gain income, dividends or any other income that does not fall under the exemption criteria. Besides, the rate of taxes for individual assesses are different according to their filing status (Hoynes, Hilary, Doug Miller, and David Simon, pp. 172-211).

In the given case, Femme is an employee of a software company as a software engineer has salary income of $60,000. Apart from that, she is engaged in part-time consulting business and earned $5,000 including the business expenses of $1,000.  She was advised by one of her colleagues about the filing of Federal income tax returns. She was told that it is voluntary to file the income tax return and assesses have the right to refuse to pay income tax based on the moral grounds following the First Amendment.

The First Amendment of the Frivolous Tax Arguments to the Constitution of United States does not give an assessee a right to refuse for the payment of income tax based on any moral or religious ground to the Federal of United Sates. However, it disallows Congress to promote any specific religion as well as restricts the religious practices of individual (Clingingsmith, David, and Scott Shane, pp. 2495-2989).

On considering the above rules laid by the constitution of United States as the First Amendment, Femme is required to file Federal income tax returns for the year of assessment.

2. According to the taxation provision and rulings, Femme is required to pay taxes on her salary income from Old School Software Inc. as well as earnings from the part-time consulting business. Further, the taxable income from the consulting business would be excluding the business expenses amounted to $1,000. Hence, her total taxable income would be salary income $60,000 and $4,000 from consulting business income. Apart from these taxes, Femme is required to pay other taxes like withholding taxes on payroll as an employee portion, income on investment as dividends, interest, capital gain and rent on property (Faccio, Mara, and Jin Xu, pp. 277-300).

 

Femme is planning to investment in two types of investment i.e. on Short-Term Capital Management and in Buy and Hold Forever Investment Management. In case of first investment, Femme expects to earn an income of 13% after the payment of brokerage firm or interest on borrowing (9%). Whereas, in case of second type of investment plan there will not be any borrowing charges. In both the cases, Femme is liable to pay taxes on income from investment at the rates specified in the provisions of the Federal Income Tax of the United States Constitution (Hanlon, Michelle, Edward L. Maydew, and Jacob R. Thornock, pp. 257-287).

Further, Femme is required to pay tax on social security on the total salary income as her portion. Femme’s employer is required to withhold the social security tax at the rate of 6.2% from the salary $60,000. Since, the status of Femme is single her tax rate would fall under tax rate of 10% for first $9,225.

3. Femme is planning to make investment either in Short-Term Capital Management or in Buy and Hold Forever Investment Management. In case of first type of investment Femme will have to bear the borrowing charges of 9% from the bank or brokerage charges. This management group deals in buying and selling of securities in the duration of four working days. Femme expects to earn a return of 13% per year after deducting the respective charges (Bruno, Sergio, et al, pp. 979-989).

On the other hand, Femme plans to invest in other group called Buy and Hold Forever Investment Management in which there would be no borrowing or brokerage charges. However it transacts the securities within an average time of four years with an approximate return of 12% per year.

Both the investment schemes are different in the perspective of duration. First scheme involves short- term investment while the second one involves long- term investment as the average time of dealing with transaction is more than one year. Moreover, the percentage of return in the first scheme of investment is an expected return but in the second scheme the percentage of return is consistent since last ten years. Even though the return in first scheme 13% is after the charges of borrowing, there is no surety. Therefore, it is advisable to invest in the second scheme of investment because it shows the constant trend of producing 12% return without any charges (Handley, Kyle, and Nuno Limao, pp. 189-222).   

 

Reference List:

Bruno, Sergio, et al. "Risk neutral and risk averse approaches to multistage renewable investment planning under uncertainty." European Journal of Operational Research 250.3 (2016): 979-989.

Clingingsmith, David, and Scott Shane. "WE ARE WHAT WE TAXHOW INDIVIDUAL INCOME TAX POLICY AFFECTS ENTREPRENEURSHIP."Fordham L. Rev. 84 (2016): 2495-2989.

Faccio, Mara, and Jin Xu. "Taxes and capital structure." Journal of Financial and Quantitative Analysis 50.03 (2015): 277-300.

Handley, Kyle, and Nuno Limao. "Trade and investment under policy uncertainty: theory and firm evidence." American Economic Journal: Economic Policy 7.4 (2015): 189-222.

Hanlon, Michelle, Edward L. Maydew, and Jacob R. Thornock. "Taking the long way home: US tax evasion and offshore investments in US equity and debt markets." The Journal of Finance 70.1 (2015): 257-287.

Hoynes, Hilary, Doug Miller, and David Simon. "Income, the earned income tax credit, and infant health." American Economic Journal: Economic Policy7.1 (2015): 172-211.

OR

MyAssignmenthelp.com is the perfect solution to render quality solution for all sort of academic issues. We have hired professionals from different fields of study to provide assistance with different subjects. We successfully have provided different types of assignment solutions on 100+ subjects. We have hired industry experts to deliver nursing assignment, hr assignment and finance assignment help. To offer quality content with IT assignments, we have hired IT professionals to render programming language assignment help and IT assignment help for other types of IT assignments as well.

Most Downloaded Sample Of Tax

Advanced Taxation: Income Tax Assessment Act

Download : 1 | Pages : 8

Question: Discuss about the Advanced Taxation for Income Tax Assessment Act.   Answer: Introduction According to the Income Tax Assessment Act 1997, TR2012/D1 income from the trust estate is distributable to the beneficiaries as per the clauses mention in the trust deed. As contained under section 53A, income generated from the trust estate is computed according to the terms and conditions of the trust deed. Such distributa...

Read More arrow

Accounting For Tax Purposes In Australia

Download : 0 | Pages : 7

Question: Discuss about the Accounting For Allowable And Non-Allowable Expenses For Tax Purposes In Australia.     Answer: Australian Tax Office recognizes and allow expenses and cost that relate directly to activities relating to revenue generation to be the only items eligible for tax deduction deductible. John Smith by virtue of being a veterinarian officer generates his revenue from the services he offers at his own consulti...

Read More arrow Tags: Australia Melbourne Finance principlesof finacial markets University of Melbourne Accounting 

Taxation Law : Seperate Business Tax

Download : 0 | Pages : 4

Question: Describe about the Taxation Law for Seperate Business Tax.   Answer: Capital Gain Tax The Capital gain Tax (CGT) are the tax that are paid by the taxpayer on the capital gains made in case of a CGT event. The Capital Gain tax is not a separate tax but a component of the Income Tax Assessment Act 1997.  The Section 100-10 of the ITAA 1997 states that the Capital Gain Tax affects the income tax liability of the taxpayer. ...

Read More arrow Tags: Australia Merrylands Management  business law University of New South Wales (UNSW) Masters in Business Administration 

Commercialization Of Professional Football In The Global Market

Download : 0 | Pages : 11

Question: Discuss about the Commercialization of professional football in the global market.     Answer: Introduction The research proposal aims to evaluate the impact of commercialization of professional football through various marketing and promotional activities in the global market. The proposal will allow for understanding the need for marketing and advertising of the professional football and make it successful in the glo...

Read More arrow

Depreciation Available For Matthew Financial Year

Download : 0 | Pages : 6

Questions: 1. Discuss the deductibility of the $70 000 expense for Paper Co. 2. Explain, citing sections, whether or not the following expenses can be incurred in the cost base for each of the following situations. Note that all assets are post CGT. 3.Showing workings, calculate Claude’s net capital gain or loss (assuming he has no other CGT events) 4. Calculate the highest deduction for depreciation available for Matthew for the fina...

Read More arrow Tags: Australia Preston Management Principles of Distributed systems University of New South Wales 
Next
watch

Save Time & improve Grade

Just share your requirement and get a customized solution.

question
We will use e-mail only for:

arrow Communication regarding your orders

arrow To send you invoices, and other billing info

arrow To provide you with information of offers and other benefits

1,116,076

Orders

4.9/5

Overall Rating

5,043

Experts

Our Amazing Features

delivery

On Time Delivery

Our writers make sure that all orders are submitted, prior to the deadline.

work

Plagiarism Free Work

Using reliable plagiarism detection software, Turnitin.com.We only provide customized 100 percent original papers.

time

24 X 7 Live Help

Feel free to contact our assignment writing services any time via phone, email or live chat.

subject

Services For All Subjects

Our writers can provide you professional writing assistance on any subject at any level.

price

Best Price Guarantee

Our best price guarantee ensures that the features we offer cannot be matched by any of the competitors.

Our Experts

Assignment writing guide
student rating student rating student rating student rating student rating 4/5

248 Order Completed

100% Response Time

Lloyd Bernabe

MSc in Accounting

London, United Kingdom

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

203 Order Completed

97% Response Time

Richard Alpert

PhD in Psychology

London, United Kingdom

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

453 Order Completed

98% Response Time

Howard Asuncion

LLM in Criminal Law

London, United Kingdom

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

2109 Order Completed

99% Response Time

Emma Zhong

Ph.D in Project Management with Specialization in Project Communications Management

Singapore, Singapore

Hire Me

FREE Tools

proofreading

Proofreading & Editing

Complete guid on proofreading and editing.

plagiarism

Plagiarism Checker

Get all your documents checked for plagiarism or duplicacy with us.

essay

Essay Typer

Get different kinds of essays typed in minutes with clicks.

edit

GPA Calculator

Calculate your semester grades and cumulative GPa with our GPA Calculator.

referencing

Chemical Equation Balancer

Balance any chemical equation in minutes just by entering the formula.

calculator

Word Counter & Page Calculator

Calculate the number of words and number of pages of all your academic documents.

Refer Just 5 Friends to Earn More than $2000

Check your estimated earning as per your ability

1

1

1

Your Approx Earning

Live Review

Our Mission Client Satisfaction

it was quiet good , as the expert followed the guide i provided and sent the work on time

flag

User Id: 236084 - 21 Oct 2019

Australia

student rating student rating student rating student rating student rating

through the solution learn the subject well. explained well all the solutions. thank you

flag

User Id: 287765 - 21 Oct 2019

Australia

student rating student rating student rating student rating student rating

all the work done as expected. solutions are easy to understand. great work...!!!

flag

User Id: 287765 - 21 Oct 2019

Australia

student rating student rating student rating student rating student rating

got stuck, got the idea & got the solution. highly appreciate the service. cheers!!!

flag

User Id: 287765 - 21 Oct 2019

Australia

student rating student rating student rating student rating student rating
Have any Query?