Uramilaben Fred currently earns $9,300 per month. Fred has been offered the chance to transfer for three to five years toan overseas affiliate. His employer is willing to pay Fred $12,300 per month if he accepts the assignment.Assume that the maximum foreign-earned income exclusion for next year is $120,000.Problem 5-62 Part a-1 (Algo)a-1. How much U.S. gross income will Fred report if he accepts the assignment abroad on January 1 of next year and workoverseas for the entire year?Income reported

Approach to solving the question: If his affiliate in a foreign country should send a similar amount…

Answered: Fred currently earns $9,300 per month.…

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter11: Individuals As Employees And Proprietors

Section: Chapter Questions

Problem 24P

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Problem 5-62 (LO 5-3) (Algo) Fred currently earns $10,500 per month. Fred has been offered the chance to transfer for three to five years to an overseas affiliate. His employer is willing to pay Fred $11,500 per month if he accepts the assignment. Assume that the maximum foreign-earned income exclusion for next year is $112,000. Required: a-1. How much U.S. gross income will Fred report if he accepts the assignment abroad on January 1 of next year and works overseas for the entire year? a-2. If Fred's employer also provides him free housing abroad (cost of $21,500), how much of the $21,500 is excludable from Fred's income? b. Suppose that Fred's employer has offered Fred a six-month overseas assignment beginning on January 1 of next year. How much U.S. gross income will Fred report next year if he accepts the six-month assignment abroad and returns home on July 1 of next year? c-1. Suppose that Fred's employer offers Fred a permanent overseas assignment beginning on March 1 of next…
User During the 2023 income year, Lance McGuinness (a non-resident taxpayer) received the following income: Salary from employer for work performed in Australia $ 45,000 Salary from employer for work performed outside of Australia $105,000 Rent received from property in Hong Kong $ 20,000 Calculate Lance's Australian taxable income for 2023 Question 7Select one: A. $170,000 B. $65,000 C. $45,000 D. $ 150,000
13-13 Foreign Income Exclusions. J worked in Canada from August 1, 2020, through September 30, 2021. During 2021 her salary from work in Canada was $60,000 (in U.S. dollars), and her salary from work in the United States after she returned was $10,000. a) Calculate J's foreign earned income exclusion. b) Assume J earned $90,000 in Canada. What is her foreign earned income exclusion?
H2 Advice Ben of all the tax consequences he will have to face because of the following (as per the Australian taxation law) i) Ben is a manager employed by ABC Pty Limited under a two-year contract. His employment package consists of the following: At Easter 2022 ABC Pty Limited provides a “Bunny” hamper to Ben. As he is a more senior employee the hamper includes 10 bottles imported Mexican wine. ii) the sale of an investment property sold for $600,000 which Ben had acquired for $400,000 a year before. ( tax consequences to ben)
Taxpayer Q has net taxable income of $30,000 from Country Y which imposes a 40 percent income tax. In addition to the income from Country Y, taxpayer Q has net taxable income from US sources of $120,000, and US tax liability, before the foreign tax credit, of $30,290. What is the amount of Q's foreign tax credit? a.$30,290 b.$12,000 c.$6,058 d.$8,350 e.None of these choices are correct.
Problem Solving 1.A, non-resident alien not engaged in business in the Philippines, has the following income within and without the Philippines for 2018: Within the Abroad Salary and allowances Dividend income Royalty income Phil 100,000 90,000 50,000 150,000 60,000 40,000 What is the income tax due / payable of A?
Problem 9-54 (LO 9-4) Jenna paid foreign income tax of $2,997 on foreign income of $14,986. Her worldwide taxable income was $120,800, and her U.S. tax liability was $30,000. Required: a. What is the amount of the foreign tax credit (FTC) allowed? b. What would be the allowed FTC if Jenna had paid foreign income tax of $5,900 instead? Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount. a. Foreign tax credit allowed b. Foreign tax credit allowed Amounts
34. Sara has the following items of income Philippines 200,000 P 100,000 Abroad Business income Professional fees Compensation income Rent income 100,000 400,000 300,000 30,000 50,000 200,000 40,000 Interest income a. Assuming Sara is a resident citizen, compute the total income subject to Philippine income tax. b. Assuming that Sara is a resident alien, compute the total income subject to Philippine income tax. c. Assuming that Sara is a resident foreign corporation, compute the total income subject to Philippine income tax. d. Assuming that Sara is a domestic corporation, compute the total income subject to Philippine income tax. END
QUESTION ONE Mr Stephen Ncube is a resident of Zambia. The following detail relate to his employment in the tax period ended 31 July 2020. ZMW Salary 240 000 Bonus 52 000 Cost of living allowance 16 000 Refund from medical aid society 6 000 Cell phone allowance 8 000 Cash in lieu of leave 4 000 ExpensesDoctor's consultation fees 18 000 Contribution to retirement annuity fund 30 000 Contribution to medical aid 36 000 Contribution to medical pension fund 39 000 Additional information provided by the employer 1. The employer provided him with a well-furnished company house in April, however, according to the Rentals Board, market related rentals for the house was 6 000 ZMW per month. According to the employer the upkeep of the house was 2 000 ZMW per month. Stephen paid 2 500ZMW per month to his employer.2. In March the employer provided him with the free use of a car with an engine capacity 3 200 cc. However, the motor vehicle was used 80% for private use during the tax…
Question 9 Mary Am lives in Detroit, Michigan, USA. She commutes daily to Windsor, Ontario, Canada, where she is employed by GM Company of Canada Limited. She works 9 am to 5 pm, Monday through Friday. Which one of the following best indicates Carla's residency status for Canadian income tax purposes for 2023? A A full-time resident B) A deemed resident (sojourner) C A part year resident A non-resident Question 10 An auditor reviewing Sneaky Corporation discovered that $100,000 of corporate revenue was being deliberately recorded in the books as a debit to Bank and a credit to shareholders loan. Which of the following statements is true? ↓ A This transaction does not fit any of the above options B) This transaction is an example of tax evasion c) This transaction is an example of tax planning. (D) This transaction is an example of tax avoidance
20. A resident citizen has a compensation income of P1,250,000 within the Philippines and P150,000 from abroad. Compute the income tax due * О а. Р 320,000 ОБ.Р310,000 О с. Р 300,000 O d. 0
2-3. A, resident alien, has the following income within and without the Philippines for 2018: Within the Phil 300,000 90,000 50,000 200,000 Abroad Salary and allowances Dividend income Royalty income-others Business income-net of 150,000 60,000 40,000 300,000 expenses Interest deposits income-bank 30,000 40,000 What is the total final income tax due of A? What is the basic income tax due of A?

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