Quote: "The United States of America has separate federal, state, and local governments with taxes imposed at each of these levels."
Taxation of businesses involves the application of tax laws to various types of businesses, including corporations, partnerships, and sole proprietorships. This topic covers business deductions, depreciation, tax credits, and filing requirements.
Taxation Basics: This topic provides an overview of the fundamental principles of taxation, including types of taxes, tax structures, and tax implications.
Entity Classification: This topic explains the different types of business entities (sole proprietorship, partnership, corporation, S corporation, LLC) and how each is taxed.
Taxable Income: This topic covers what counts as taxable income and what deductions can be taken to reduce taxable income.
Deductions and Credits: This topic explains what expenses are deductible and which credits apply to businesses, including research and development, child care, and small business health care.
Employment Taxes: This topic covers social security, Medicare, and unemployment insurance taxes related to employment.
Sales and Use Tax: This topic explains sales tax, and when it applies, what items are taxable, and how to collect and remit it.
International Taxation: This topic covers taxation on international business transactions, including taxation of foreign income, transfer pricing, and double taxation treaties.
State and Local Tax: This topic covers the various tax structures implemented by state and local governments, including income tax, sales tax, and property tax.
Tax Compliance: This topic provides guidance on complying with various tax obligations, including filing tax returns, making tax payments and reconciling.
Tax Audits and Controversies: This topic helps businesses learn about tax audits that may occur, how to respond to them, and how to resolve disputes with the IRS.
Tax Planning Strategies: This topic provides strategies for minimizing tax liability, including tax-loss harvesting, retirement account contributions, and income-deferral techniques.
Tax Reform: This topic covers the latest changes to tax law and legislation, including the impacts on businesses and new opportunities for tax savings.
Alternative Business Structures: This topic allows for the exploration of different business structures to maximize tax savings, including mergers and acquisitions and partnerships.
Confidentiality and Ethics in Tax Law: This topic explains the ethical considerations that arise in tax laws, confidentiality requirements that need to be maintained in dealing with sensitive tax information.
Income tax: A tax imposed on the income that businesses generate from their operations.
Sales tax: A tax levied on the sales of goods and services by businesses.
Property tax: A tax imposed by local governments on real estate, buildings, and other tangible property owned by businesses.
Employment taxes: Taxes levied on employers who pay wages or salaries to employees.
Excise taxes: Taxes imposed on specific goods, often those that are considered luxury items, such as tobacco or alcohol.
Corporate tax: A tax levied on the profits earned by corporations.
Capital gains tax: A tax imposed on the profits earned from the sale of non-inventory assets, such as real estate or stocks.
Estate tax: A tax levied on the transfer of property from a deceased person to their heirs or beneficiaries.
Inheritance tax: A tax imposed on the transfer of property from one person to another upon the death of the owner.
Payroll taxes: Taxes that businesses must pay to fund social security, Medicare, and other government programs.
Quote: "Taxes are levied on income, payroll, property, sales, capital gains, dividends, imports, estates and gifts, as well as various fees."
Quote: "In 2020, taxes collected by federal, state, and local governments amounted to 25.5% of GDP, below the OECD average of 33.5% of GDP."
Quote: "U.S. tax and transfer policies are progressive and therefore reduce effective income inequality, as rates of tax generally increase as taxable income increases."
Quote: "The lowest earning workers, especially those with dependents, pay no income taxes and may actually receive a small subsidy from the federal government."
Quote: "Taxes fall much more heavily on labor income than on capital income."
Quote: "Citizens and residents are taxed on worldwide income and allowed a credit for foreign taxes."
Quote: "Individuals are permitted to reduce taxable income by personal allowances and certain non-business expenses, including home mortgage interest, state and local taxes, charitable contributions, and medical and certain other expenses incurred above certain percentages of income."
Quote: "Federal marginal tax rates vary from 10% to 37% of taxable income."
Quote: "The 2017 tax law imposed a $10,000 limit on the state and local tax ("SALT") deduction, which raised the effective tax rate on medium and high earners in high tax states."
Quote: "The United States is one of two countries in the world that taxes its non-resident citizens on worldwide income, in the same manner and rates as residents."
Quote: "The foreign earned income exclusion eliminates U.S. taxes on the first $120,000 of annual foreign source earned income of U.S. citizens and certain U.S. residents living and working abroad."
Quote: "Payroll taxes are imposed by the federal and all state governments. These include Social Security and Medicare taxes imposed on both employers and employees."
Quote: "There is an additional Medicare tax of 0.9% on wages above $200,000."
Quote: "Property taxes are imposed by most local governments and many special purpose authorities based on the fair market value of property."
Quote: "Sales taxes are imposed by most states and some localities on the price at retail sale of many goods and some services."
Quote: "The United States imposes tariffs or customs duties on the import of many types of goods from many jurisdictions."
Quote: "Estate and gift taxes are imposed by the federal and some state governments on the transfer of property inheritance, by will, or by lifetime donation."
Quote: "Similar to federal income taxes, federal estate and gift taxes are imposed on worldwide property of citizens and residents and allow a credit for foreign taxes."
Quote: "Payroll taxes have dramatically increased as a share of federal revenue since the 1950s, while corporate income taxes have fallen as a share of revenue."