About This Chapter
Corporations, Partnerships & Taxes - Chapter Summary
Follow along with our expert accounting instructors to review corporations, partnerships and taxes. Using a simplified and engaging teaching style, our instructors show you the basics of business tax structures, tax types, tax implications, tax calculations and much more. You can work through the chapter at your own pace using any Internet-connected device. You can also solidify your comprehension of these taxation topics by taking the included self-assessment quizzes. The chapter's lessons and quizzes are designed to help you:
- Outline the tax structures and liabilities of business partnerships and corporations
- Account for income, sales and property taxes
- Recognize examples of payroll tax
- Differentiate between capital expenditure and current business expense
- Compare different types of trusts, inventory and taxes
- Explain various depreciation methods
- Understand the benefits and taxation of annuities
- Assess the tax implications of selling a business
- Evaluate the tax effects of deferred payment sales
- Make business income tax calculations
1. Tax Structure and Liability of Business Partnerships
Many businesses are partnerships. These are unincorporated businesses owned by two or more people. This lesson explains the tax structure of partnerships and the liability of general partners.
2. Tax Structure and Liability of Corporations
A corporation is a complex business structure with unique characteristics pertaining to taxation and liability. The advantages of a corporation are subject to certain rules. This lesson explains double taxation, limited liability and piercing the corporate veil.
3. How to Account for Sales, Property & Income Taxes
Taxes are a certainty, for businesses as well as for individuals. In this lesson, we'll examine accounting principles for three common taxes that businesses encounter: sales tax, property tax, and income tax.
4. What is Payroll Tax? - Definition & Example
This lesson will define the payroll tax and explore the various types of payroll taxes. Also, an example that looks at payroll taxes from the viewpoint of the employee will be provided.
5. Current Business Expense vs. Capital Expenditure
When a business purchases something to use in its business, it must decide how to record the transaction. In this lesson, you will learn about current expenses and capital expenditures.
6. Types of Trusts
In this lesson, we will introduce four types of trusts, which are living, testamentary, credit-shelter, and disclaimer trusts. The lesson will describe characteristics of each, which will show how they differ from the others.
7. Methods of Depreciation
After watching this video lesson, you will understand the differences between the different depreciation methods that are available to you. We will discuss three different methods depending on how you use the equipment that you want to calculate the depreciation for.
8. Annuities: Types & Benefits
In this lesson, we'll define annuity and learn about the two main types of annuities. We'll also discuss three annuity investment options, including the benefits and disadvantages of each.
9. Taxation of Annuities
Annuities are instruments that can be harnessed to ensure income during retirement. However, the IRS also wants a piece of the action: This lesson will cover the tax implications and rules for annuities.
10. Inventory & Taxes: Definition & Examples
This lesson will cover how inventory is to be accounted for come tax time. We will look at the most common methods for accounting for inventory and see how the IRS would like the accounting of inventory done. We will also take a look at what you do with end-of-life inventory.
11. Tax Implications When Selling of a Business
Choosing the correct incorporation model for a business is critically important for a variety of reasons. A business owner's choices when incorporating a business will have a significant effect on the seller's tax liability when the company is sold.
12. Business Income Tax Calculations
Just like our own paychecks, businesses must claim their income to the Internal Revenue Service. The steps include calculating income and deductions, factoring in assets, depreciation, profits and losses.
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