Acct431 Accounting Tax Research

Hannah Futrell

ACCT431 – Spring 2019

Research Assignment #1

Thursday, February 14, 2019

Use RIA Checkpoint Internet Tax Research

Locate the following Internal Revenue Code Sections, as amended by the 2017 “Tax Cuts and Jobs Act”, and answer each of the following five questions.

1. Locate IRC Section 11 Subsection (b) and indicate what the corporate tax rate will be for years beginning after December 31, 2017.

According to the Internal Revenue Code Section 11 Subsection (b) the corporate tax rate for years beginning after December 31, 2017 will be 21% of taxable income.

• § 11 Tax imposed. [Amended by the Tax Cuts and Jobs Act, P.L. 115-97; see Code history for details.]

(b) Amount of tax.

The amount of the tax imposed by subsection (a) shall be 21 percent of taxable income.

1. Locate IRC Section 199A and indicate what type of deduction certain business owners may be able to take for years beginning after December 31, 2017.

In the Internal Revenue Code Section 199A in the case of a taxpayer other than a corporation, there shall be allowed as a deduction for any taxable year an amount equal to the lesser of – the combined qualified business income amount of the taxpayer or an amount equal to 20% of the excess (if any) of – the taxable income of the taxpayer for the taxable year over the net capital gain of the taxpayer for such taxable year.

• § 199A Qualified business income.

(a) Allowance of deduction.

In the case of a taxpayer other than a corporation, there shall be allowed as a deduction for any taxable year an amount equal to the lesser of—

(1) the combined qualified business income amount of the taxpayer, or (2) an amount equal to 20 percent of the excess (if any) of—

(A)  the taxable income of the taxpayer for the taxable year, over

(B)  the net capital gain (as defined in section 1(h)) of the taxpayer for such taxable year.

(b) Combined qualified business income amount.

1. Locate IRC Section 164 and find the limitation on state and local tax deductions for 2018 for married filing jointly.

Internal Revenue Code Section 164 states that the limitations on state and local tax deductions for 2018 for married filing jointly shall not exceed $10,000.

• § 164 Taxes. [Amended by the Tax Cuts and Jobs Act, P.L. 115-97; see Code history for details.]

“the aggregate amount of taxes taken into account under paragraphs (1), (2) , and (3) of subsection (a) and paragraph (5) of this subsection for any taxable year shall not exceed $10,000 ($5,000 in the case of a married individual filing a separate return).”

1. Research and find the standard deductions for married filing jointly taxpayers for 2017 and 2018.

The Revenue Procedures Section 63 states the married filing jointly standard deduction in 2017 was $12,700. In 2018 the standard deduction amounts increased. For those married filing jointly, it is now $24,000.

Rev. Proc. 2016-55, 2016-45 IRB 707, 10/25/2016, IRC Sec(s). 1

14. Standard Deduction.

(1) In general. For taxable years beginning in 2017, the standard deduction amounts under § 63(c)(2) are as follows:

Filing Status                                                                Standard Deduction