Child Care Expenses

Child Tax Credit - Partially limited - Carry forward or lost

Asked Tuesday, January 16, 2001 by an anonymous user

CPA Answer:

Any unused Child Tax Credit cannot be carried forward to future years.
The credit begins its phase-out at Adjusted Gross Income of $110,000 for married taxpayers filing joint returns.
For single taxpayers or those filing as head of household the threshold is $75,000.
For married filing separate returns the threshold is $55,000.
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Taxes - My Tax Return

What percentage is the personal income taxes collected to the total federal revenues collected ?

Asked Tuesday, January 16, 2001 by an anonymous user

CPA Answer:

Income tax represent .396% or more of the total revenues collected. It is the largest revenue generator for the federal government.
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Travel & Entertainment

What is the amount that receipts for business transportation and entertainment expenses are required ?

Asked Tuesday, January 16, 2001 by an anonymous user

CPA Answer:

Generally, IRS no longer requires receipts for business transportation and entertainment unless the expense exceeds $75. A business diary with details of the time, place, person you met with and the reason for the meeting should always be maintained. Your expenses for lodging always require detailed receipts, regardless of the amount.
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Investments & Financial Planning

What is a Reverse stock split strategy ?

Asked Tuesday, January 16, 2001 by an anonymous user

CPA Answer:

A Reverse stock split strategy is when there is a proportionate decrease in the number of shares, but not the total value of shares of stock held by shareholders. Shareholders maintain the same percentage of equity as before the split. A 1-for-3 split would result in stockholders owning one share for every three shares owned before the split. After the reverse split, the firm's stock price is, three times the before reverse split price. A firm generally institutes a reverse split to boost its stock's market price. Some managers think this strategy supposedly attracts investors.
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Investments & Financial Planning

What is the Repurchase of stock strategy ?

Asked Tuesday, January 16, 2001 by an anonymous user

CPA Answer:

The Repurchase of stock technique is when the corporation pays cash to the firm's shareholders that provides more preferential tax treatment for shareholders than dividends. Generally, after the repurchase, less stocks are available and the price per share increases. Treasury stock is the name given to previously issued stock that has been repurchased by the firm. A repurchase is achieved through either a , open market, purchase, tender offer or Dutch auction.
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Investments & Financial Planning

What is a Real Time price quote ?

Asked Tuesday, January 16, 2001 by an anonymous user

CPA Answer:

A Real Time stock or bond quote is one that states a security's most recent offer to sell or buy. The quote is as that precise point in time as opposed to a delayed point in time. This is different from a delayed quote, which shows the same bid and ask prices Fifteen or twenty minutes after a trade takes place.
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Investments & Financial Planning

What is an Real Estate Investment Trust ( REIT ) ?

Asked Tuesday, January 16, 2001 by an anonymous user

CPA Answer:

A Real Estate Investment Trust (REIT) invest in real estate or loans secured by real estate and issue shares in such investments. A Real Estate Investment Trust is similar to a closed-end mutual fund.
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Estate Planning

What is an Real Estate Investment Trust ( REIT ) ?

Asked Tuesday, January 16, 2001 by an anonymous user

CPA Answer:

A Real Estate Investment Trust (REIT) invest in real estate or loans secured by real estate and issue shares in such investments. A Real Estate Investment Trust is similar to a closed-end mutual fund.
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Investments & Financial Planning

What is a Pyramid scheme ?

Asked Tuesday, January 16, 2001 by an anonymous user

CPA Answer:

Pyramid scheme is an fraudulent, illegal scheme in which a con artist convinces victims to invest by promising an extraordinary large return on their investment but instead simply use newly invested funds to pay off any investors who insist on terminating their investment.
This timing scheme usually continues to a point in which the con artist disappears with the bulk of the investors funds.
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Investments & Financial Planning

What is a " Put " option ?

Asked Tuesday, January 16, 2001 by an anonymous user

CPA Answer:

Put A "Put" is an option granting the right to "Sell" the underlying futures contract. This is opposite of a call. A "Call" is an option that gives the holder the right to "Buy" the underlying futures contract.
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