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2018 Taxability of Wages, Salaries and Other IncomeIn this tax subject, we will review the taxability of wages, salaries and other income. These items include earned income, statutory employees and tip income. We will also look at the tax treatment interest income both taxable and nontaxable, dividends and other distributions from mutual funds, corporations and other entities. We will look closely at qualified dividends. In addition, we will review the tax treatment of rental income and expenses, why rental income can be considered passive income and what needs to happen in order for rental income to be considered nonpassive income for tax purposes. Furthermore, this review of rental income will include depreciation, vacation homes, not-for-profit rental and even the renting of personal property. We will discuss the tax treatment of professional real estate agents, also. Once you complete this 2018 Taxability of Wages, Salaries and Other Income course, you will have satisfied 8 hours of continuing education which satisfies 8 hours of tax law towards your total continuing education required hours.
Tax School Home Page Student Instructions: Follow the following 2 steps:
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Tax Interview |
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| 1 |
Introduction - For the introduction part of this
essay, you may want to first answer the following three
questions with one paragraph each and then come back to fill in the introduction and
mention something from each of the three paragraphs.
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| 2 | How do you determine what is taxable and what is not? What does the manner in which services performed and how your employer has you perform these services have to do with taxability of the services? | ||||||||||||||||||
| 3 | What are fringe benefits? How do you determine if fringe benefits are taxable? Can you provide some examples of fringe benefits and how they are taxable? | ||||||||||||||||||
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What is constructive receipt of income? Why is only income that is constructively received taxable? Provide an example of when income can be not considered received. | ||||||||||||||||||
| 5 | What is usually the topic when we talk about elective deferrals? Why is it important for a tax planner to know elective deferrals really well? Provide some examples of elective deferrals and how they work? | ||||||||||||||||||
| 6 | Could you be exempt from Medicare taxes? Who are the taxpayers who are usually exempt from paying Medicare taxes? In some instances items could be exempt from all taxes except for Medicare. Can you provide an example of this instance? How does the withholding of Social Security and Medicare taxes apply to statutory employees? | ||||||||||||||||||
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How do you know if you have an OID? If you have an OID, how it is taxable on your tax return? | ||||||||||||||||||
| 8 | What is considered a capital asset? What would not be a capital asset? If you sell a capital asset and you have a loss, how much of it is deductible? What about gains - do you have to report capital gains on your tax return and if so, on what form or schedule? Can you carryover a capital loss? | ||||||||||||||||||
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Why is active participation in a business venture important? What profession is most commonly considered a passive activity? What is the limit of loss that can be deducted if there is no active participation? | ||||||||||||||||||
| 5 | Conclusion - For the conclusion part of this essay, you may mention something from the three previous paragraphs and offer an opinion. What do you think about all this? | ||||||||||||||||||
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| Revised: 05/27/18 | |||||||||||||||||||
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