Tax planning clients Case Study Example | Topics and Well Written Essays - 1000 words

Tax planning clients - Case Study Example The earnings set aside would be deposited in the flexible spending account and would be free of tax. That is, the funds deposited in the flexible spending account are not subject to taxation. According to the FSA provisions, the whole amount deposited in the flexible spending account should be spent within the coverage period specified otherwise; the non-spent amount is forfeited or subjected to taxation. According to the case, the couple never funded their flexible spending account; therefore, all their transactions are subject to tax. Below are questions and answers in reference to tax provisions. Q1: in general, if the insurance benefit is to be paid to the beneficiary at once, the amount is not subject to tax. However, if the insurance benefit is paid in monthly instalments, any interest that accumulates on top of the face value is taxable. By general law, life insurance benefits are excluded from tax. If, at the time of death, the owner of the insurance policy is the deceased, the insurance benefits are subject to tax (estate tax). However, if the deceased is not the owner of the insurance policy, at the time of death, the benefits are not subject to tax. With respect to the case in consideration, Tom was the owner of the life insurance policy at the time of his death. Therefore, Josephine would be required by the IRS to claim the face value of the life insurance for both federal and state tax purposes (Lal & Lal 56-120). Q 2: any amount spent by an individual on medical services is supposed to be reimbursed provided there is a scheme to that effect. In general, unreimbursed medical expenses are tax deductible. That is, the monetary worth of the medical service should be deducted from the gross income. If the amount spent by the Marchs on medical services is 10% of their adjusted gross income, they should deduct the unreimbursed medical expense from their gross profit. This move will reduce their gross

Script for Theater Class Essay Example | Topics and Well Written Essays - 1000 words

Script for Theater Class - Essay Example (Velma was shaking her head as she looked at her friend.) Now, please do not think I am being pessimistic nor am I trying to discourage you even more. I am just trying to let you see clearly what could possibly be dimmed by your current situation and emotions. You can always find a foster parent or you can have the child adopted. In the future, you will see when you know that your child is living somewhere, that you have made the right decision. Velma: (Nodding) I have been thinking about the same things for the past days. I know it is not right for me to hurt my baby just because his father and I are cowards. I cannot bear the thought of having my child suffer a lot while I try to achieve my goals. I hate my boyfriend for abandoning me to have to deal with this alone. I just wish he had some heart enough to try to know how I am doing now. Emma: Well, I do not blame Jason. Perhaps, I f I were in his position, I would have done the same thing to you. So now you know that he really does not love you. I always had my doubts about him. I knew he will just use you as a decoration in his life, a trophy for being rich and handsome. I know it pains you a lot however, at least now, you know where you stand. I think it is best that you have known that he cannot stand up to fight for the love that he so much tried to show you only to get what he really wanted. I do not think he really is the man that people have always thought him to be. He is nothing but a selfish jerk who thinks about nothing but himself. See how easily he has exchanged you and your baby for his money? Anyway, I think it would be best for you to get him out of the picture as early as now and let us just concentrate on how you and your baby are going to survive. I think you can still try to conceal your baby bump until after graduation and still be cheered as t he most intelligent among the graduates. Then perhaps, we could speak again by then. Velma: It is always funny is it? (Velma had a strange look on