7-Financial Affairs-Tax-Kinds

business tax

Private businesses must pay tax {business tax} on profits. Private businesses can be corporations {corporate tax}. Businesses take tax deductions for depreciation, inventory changes, and investment credits.

customs tax

People must pay tax {customs tax}| on property value brought into country directly from another country, unless bought in duty-free zones and so marked.

gift tax

People must pay income tax {gift tax}| on gifts received, because gifts represent income. Gifts up to $10,000 from relatives are exempt.

income tax

People can pay tax {income tax}| on wages, salaries, interest, capital gains, gifts, bequests, tips, and other income.

withholding

Employers typically send part of paychecks to government {withholding, income}.

date

USA income tax is due on April 15, for preceding fiscal year.

form

USA national income tax form {Form 1040} {1040 Form} has various lettered supplements, used for calculating deductions and taxes on businesses, rentals, royalties, interest, dividends, capital gains, child care, and moving.

statements

In January, USA W2 form shows wages or salaries paid and deductions taken by employer. This form must accompany the 1040 tax form. Statements of income from banks, mutual funds, and companies {form 1099} {1099 form} do not need to accompany tax form.

rate

Income tax rate varies from 0% to 36% for federal government and from 0% to 12% for state government.

surtax

Taxes {surtax} can be percentages of original tax.

7-Financial Affairs-Tax-Kinds-Property

property tax

City and/or county tax offices collect tax {property tax} on properties owned, based on current market value, not purchase price. Property has assessment each year.

types

Property types subject to taxation include houses, land, trailers, boats, and cars.

tax

Taxes are typically due in the fall. Taxes are a percentage of market value, typically 100%. Property taxes range from 1% to 3% of market value.

lien

Counties or states can place liens {tax lien} to pay taxes on real property. Counties or states usually wait for tax, sometimes paid by new purchaser, rather than foreclosing.

assessment

City or county officials {assessor} can determine property values {assessment}.

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Date Modified: 2022.0225