When you file your taxes, you need to report all of your income, even if it’s not taxable. This includes things like gifts, inheritances, and certain types of scholarships. The IRS wants to know about all of your income so that they can make sure you’re paying the correct amount of taxes. If you don’t … Read more
Wholesalers typically pay taxes based on the type of business structure they operate under and the jurisdiction in which they conduct business. Sole proprietorships and partnerships are generally responsible for paying individual income taxes on the profits generated by their wholesale operations. Corporations, on the other hand, are subject to corporate income taxes on their … Read more
In general, money gifted to you from another person is not considered taxable income. However, the source of the funds and the specific situation can determine whether or not taxes are owed. If the money is from a life insurance policy or retirement account, there may be taxes due depending on the beneficiary’s tax situation. … Read more
Newspapers, being essential for disseminating information and facilitating public discourse, often receive special tax considerations in many jurisdictions. Depending on the country or region, newspapers may be exempted from certain taxes, such as value-added tax (VAT) or sales tax, which are typically levied on goods and services. This tax exemption or concession aims to promote … Read more
Taxi can function as both a noun and an adjective. As a noun, it refers to a vehicle for hire that transports passengers for a fare. For example, “I took a taxi to the airport.” As an adjective, taxi describes something related to taxis or their service. For instance, “The taxi driver was friendly and … Read more
Filing taxes is a responsibility that most people have. However, there are some cases where you may not need to file. Generally, you don’t have to file if your income is below a certain threshold. This threshold varies depending on your filing status and age. For example, in 2023, the filing threshold for single filers … Read more
The Sixteenth Amendment to the Constitution gave Congress the power to levy an income tax on U.S. citizens. However, some argue that this amendment is unconstitutional because it violates the principles of equal protection and due process. They contend that the income tax is a form of direct taxation, which is prohibited by the Constitution … Read more
Unpaid taxes can have a significant impact on your credit score. When you owe back taxes, the IRS can file a tax lien against you, which is a public record that indicates you owe money to the government. This can damage your credit score, making it more difficult to get approved for loans or lines … Read more
Deferred tax liabilities are not current liabilities even though they will be paid within one year as they do not relate to the current period’s operations. They represent future tax obligations that arise from temporary differences between an entity’s financial reporting and tax reporting. These differences may be due to the timing of revenue and … Read more
GNMA dividends, paid to holders of Government National Mortgage Association (GNMA) securities, are generally taxable. While the interest payments on GNMA securities are tax-exempt, the dividends represent a distribution of the profits earned by GNMA from its mortgage-backed securities portfolio. These dividends are typically taxed as ordinary income at the federal level and may also … Read more