Tax return problem Essay Example | Topics and Well Written Essays - 500 words

Tax return problem - Essay Example For instance, the capsizing of Paul’s boat is not exempted from the tax imposed on his income, but his sale of shares and the profits that he made from the sale of Acme shares are included in the tax thus increasing the amount he is taxed overall. Secondly, the addition of the extension to their house to accommodate Hanna, leads to an increase in the property tax. Another major consideration that has to be imposed is the child support they receive from Bob, since the paper requires the child tax laws to be ignored. Such considerations had to be included in the calculation process. Primarily, income, expenditure and property changes schedule were included to evaluate the changes in the amounts. After the schedule was evaluated, then the tax calculations were made. The focus was put on the changes in the tax, using the same ratio as that imposed by the IRS on previous incomes. Alternatively, all the additional incomes would be collectively collected and then taxed. Additionally, the unreimbursed expenses that Paul underwent were not considered, as the latest the tax refund will be made is in December 2012. This shows that despite the fact that they were unreimbursed, by the time the refund is made the tax will have already been imposed for the next year, thus showing that it will be exempted from the next year