CCA is the amount of money that a business can claim as a deduction against its income for the purpose of depreciation or wear and tear of its capital assets. The CCA rate is the percentage of the cost of the asset that can be claimed as a deduction each year. What is CCA in … Read more
Withholding Tax: Types and How It’s Calculated Is withholding tax an indirect tax? Yes, withholding tax is an indirect tax. Withholding tax is a tax that is deducted from an individual’s or business’s income at source. This means that the tax is deducted from the income before it is paid out to the individual or … Read more
Horizontal equity is the principle that individuals who are in the same circumstances should be taxed equally. The concept is often used in relation to income tax, where people with the same income should be taxed at the same rate. What is the difference between horizontal and vertical inequality? There are two main types of … Read more
A qualified disclaimer is a formal refusal to accept an interest in property that was transferred to an individual. The individual must disclaim the interest within a certain period of time and meet other requirements set forth by the Internal Revenue Service (IRS) in order for the disclaimer to be considered qualified. A qualified disclaimer … Read more
Flow-Through Entities: What You Need to Know What entities are flow-through entities? A flow-through entity is an entity through which income flows to the owners or investors, without being subject to taxation at the entity level. The most common type of flow-through entity is the partnership. Other types of flow-through entities include S corporations, limited … Read more
Pretax earnings refers to the income that a company earns before it pays income taxes. This is one of the most important financial metrics for a company, as it provides a snapshot of its profitability. Pretax earnings can be calculated by subtracting a company’s income taxes from its total revenue. This number can give you … Read more
S. Civil Service Retirement Benefits: A Tax Guide. IRS Publication 721: A Guide To U.S. Civil Service Retirement Benefits. Do you have to pay income tax after age 75? Although the age at which you have to start paying income tax varies from country to country, in the United States, you are required to pay … Read more
A parsonage allowance, also known as a housing allowance, is an amount of money that is set aside by a church or other religious organization to help ministers with their housing expenses. The allowance is typically used to help pay for a minister’s mortgage, rent, utilities, and other housing-related costs. The allowance is not considered … Read more
