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Daniyal Ranmal
11/11/15
Daniyal Ranmal
period of use. A good example could be Als toy barn. The tax amount could be
decreased due to the first investment the landlord has invested initially, according
to the capital recovery concept. Hence, its very important to estimate the
adjusted basis annually because the value of land will continue to depreciate
over time.
In the movie, the chicken mans job was shooting commercials. When the
chicken man receives pay from the owner of the store, the income tax has
directly taken place (concept). The U.S government uses pay-as-you-go (policy)
for every individual income taxpayer. This means that employers would reserve
a certain percentage of the total income for employees every period of time. By
law, every income taxpayer is required to file a tax return. Whether or not the
employees would obtain their tax return is dependent on their annual income. In
chicken mans situation, he is most likely to receive a tax refund due to his low
income by working at a toy store. Its unclear whether or not Andys mother has
secure yearly revenues and monthly earnings so it cannot be analyzed.
A yard sale, also called a garage sale has occurred right outside of Andys
house. If Andys mother didnt have a garage sale permit then she would be in
violation with the terms of the state law, but the movie did not mention that part.
In general, if a garage sale is conducted only once in a year then the sale income
is typically not taxable. However, if more than one garage sale per year is
conducted, then it makes the home a business and the transaction revenues will
be taxable.
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Daniyal Ranmal
11/11/15
Daniyal Ranmal
the toys to himself than the toys wont be taxed. Contrarily, if Andy chooses to
trade the toys to a toy store or a friend then the income will be taxable.
In conclusion, tax affects an individuals everyday life and the taxpayer
should be aware of the tax rules that relate to their daily life. The taxable element
scope is extremely extensive; there were six different types of tax involved and
two different tax issues that happened. Taxpayers should understand the
benefits of paying taxes. It is not only beneficial for the children, elders, poor
people, and government, but it is also beneficial for every American citizen.
Without tax, children would not have a good education system & a good learning
environment, drivers would not have well-maintained freeways and residential
roads to drive, and the safety of the public would be a big problem for everyone
in society. As a whole, the development of tax laws is magnificent, it improved
and reshaped American lives and more people should welcome the protected
living setting the government has provided.
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Daniyal Ranmal
References
Murphy, Kevin E., and Mark Higgins. "Chapter 2." Concepts in Federal Taxation.
2015 ed. Print.