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"Separate affiliated group" rule for satisfaction of active trade or business requirement under Section 355 Election to treat self-created musical works as capital assets Exemption from imputed interest rules for certain loans to qualified continuing care facilities
Dividend imputation was introduced in 1987, one of a number of tax reforms by the Hawke–Keating Labor Government. Prior to that a company would pay company tax on its profits and if it then paid a dividend, that dividend was taxed again as income for the shareholder, i.e. a part owner of the company, a form of double taxation.
Imputed income is the accession to wealth that can be attributed, or imputed, to a person when they avoid paying for services by providing the services to themselves, or when the person avoids paying rent for durable goods by owning the durable goods, as in the case of imputed rent.
Partially offsetting this advantage are the compressed income tax brackets for trusts that cause the investment earnings to reach the maximum income tax bracket when income exceeds $9,000–$10,000 annually. The PAT is not allowed to deduct the amount of imputed interest built into the annuity payments that it makes.
Inherited IRA rules: 7 key things to know 1. Spouses get the most leeway. If someone inherits an IRA from their deceased spouse, the survivor has several choices of what to do with it:
The rules for calculating the original issue discount utilize a compounding interest formula, with the principal recalculated every six months. Section 1272(a) of the tax code requires that the Original Issue Discount is includible in the lender's taxable income at the end of each tax year, or part of the tax year if the loan was not owned for ...
6 required minimum distribution (RMD) rules. Here’s a summary of six RMD rules you should know. Tax-deferred accounts have RMDs. You must take RMDs from any tax-deferred account, including a:
The Rule of 72 is an estimate, and more accurate at around 8 percent interest. The further the interest rate or inflation rate is from 8 percent, the less precise the result will be.