Refer to the Ethics & Equity information reflected on page 12-7 of the textbook. Prepare a discussion board post commenting on your response to your brother. Your discussion will include references to outside information as necessary. You should also respond to two other discussion board responses.
Topic: Week 11 Discussion Boa x C Get Homework Help With Che X C Chegg eReader G Refer to "The Big Picture" at th x G Refer to the "Ethics & Equity" + C chegg.com/reader/9780357109700/552/ : weight reduction a ... Ciri CHAPTER 12 Tax Credits and Payments 12-7 ETHICS & EQUITY The Rehabilitation Tax Credit Your brother-who buys, modernizes, and sells buildings in a large metropolitan city-has come to you for advice. Given the recent credit market condi- tions, business has been tough, and he has sold only a few buildings. One of your brother's buildings is a certified historic structure that would qualify for the 20 percent rehabilitation tax credit. Based on several recent appraisals, the building currently is worth $400,000. The expendi- tures needed to rehabilitate the building would be about $250,000, all of which would qualify for the rehabilitation tax credit. Your brother has been approached by an individual who is interested in buying the building. The customer has offered to pay your brother $300,000 for the building and $350,000 for the rehabilitation work. This approach would provide the customer with a larger tax credit ($350,000 X 20% versus $250,000 X 20%) and provide a needed sale for your brother's business. How do you respond? 12-3b Work Opportunity Tax Credit The work opportunity tax credit encourages employers to hire individuals from one or more of a number of targeted and economically disadvantaged groups. Examples include long-term unemployed individuals (those unemployed for at least 27 weeks), qualified ex-felons, high-risk youths, food stamp recipients, veterans, summer youth employees, and long-term family assistance recipients. Work Opportunity Tax Credit: General The credit generally is equal to 40 percent of the first $6,000 of wages (per eligible employee) for the first 12 months of employment. If the credit is taken, the employer's tax deduction for wages is reduced by the amount of the credit. For an employer to qualify for the 40 percent credit, the employee must (1) be certi- fied by a designated local agency as being a member of one of the targeted around and Topic: Week 11 Discussion Boa x C Get Homework Help With Che X C Chegg eReader G Refer to "The Big Picture" at th x G Refer to the "Ethics & Equity" + C chegg.com/reader/9780357109700/552/ : weight reduction a ... Ciri CHAPTER 12 Tax Credits and Payments 12-7 ETHICS & EQUITY The Rehabilitation Tax Credit Your brother-who buys, modernizes, and sells buildings in a large metropolitan city-has come to you for advice. Given the recent credit market condi- tions, business has been tough, and he has sold only a few buildings. One of your brother's buildings is a certified historic structure that would qualify for the 20 percent rehabilitation tax credit. Based on several recent appraisals, the building currently is worth $400,000. The expendi- tures needed to rehabilitate the building would be about $250,000, all of which would qualify for the rehabilitation tax credit. Your brother has been approached by an individual who is interested in buying the building. The customer has offered to pay your brother $300,000 for the building and $350,000 for the rehabilitation work. This approach would provide the customer with a larger tax credit ($350,000 X 20% versus $250,000 X 20%) and provide a needed sale for your brother's business. How do you respond? 12-3b Work Opportunity Tax Credit The work opportunity tax credit encourages employers to hire individuals from one or more of a number of targeted and economically disadvantaged groups. Examples include long-term unemployed individuals (those unemployed for at least 27 weeks), qualified ex-felons, high-risk youths, food stamp recipients, veterans, summer youth employees, and long-term family assistance recipients. Work Opportunity Tax Credit: General The credit generally is equal to 40 percent of the first $6,000 of wages (per eligible employee) for the first 12 months of employment. If the credit is taken, the employer's tax deduction for wages is reduced by the amount of the credit. For an employer to qualify for the 40 percent credit, the employee must (1) be certi- fied by a designated local agency as being a member of one of the targeted around and
