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Fundamentals of Taxation 2011 4th Edition by Ana Cruz, Debra Prendergast, Dan Schisler, Michael Deschamps
Edition 4ISBN: 978-0078110993Fundamentals of Taxation 2011 4th Edition by Ana Cruz, Debra Prendergast, Dan Schisler, Michael Deschamps
Edition 4ISBN: 978-0078110993 Exercise 3
Carlos has two jobs; he is an attorney (not a partner) in a law firm and he has a small legal practice (sole proprietorship) providing real estate legal services. How does he compute his federal income tax for the year? a. His wages from the law firm are taxed as an employee, as are his wages from the private practice.
B) His wages from the law firm are considered self-employment, as are the earnings from his private practice.
C) His wages from the law firm are taxed as an employee, and his earnings from his private practice are taxed as a self-employed proprietor.
D) His wages from the law firm are taxed as an employee, and his earnings from self-employment are taxed up to the maximum for social security only.
B) His wages from the law firm are considered self-employment, as are the earnings from his private practice.
C) His wages from the law firm are taxed as an employee, and his earnings from his private practice are taxed as a self-employed proprietor.
D) His wages from the law firm are taxed as an employee, and his earnings from self-employment are taxed up to the maximum for social security only.
Explanation
Verified
Verified
Hence, option (a), (b) and (c) are incor...
Fundamentals of Taxation 2011 4th Edition by Ana Cruz, Debra Prendergast, Dan Schisler, Michael Deschamps
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