Alternative Minimum Tax Essay Example for Free

Alternative Minimum Tax Essay Good to hear from you Alex. Estate and gift tax can be a burden so let me help you clear the air and give you a fresh take on what to do. First I’m going to want to explain to you the estate tax formula. Then I will discuss the interplay between gift and estate taxes. I have a few strategies for you to minimize estate taxes that I can let you in on and will help you on the long run. I would also like to explain the generation-skipping transfer tax and its relationship to gift and estate tax, because this might relate to you. From all this I will give you my advice on whether to invest in your son and his business idea. I would like to explain the estate tax formula and how it is computed. The first step is to gather or compile the gross estate and that consists of all the property in which you have an interest in. This would be the total dollar value of all the property and assets you have at the time of your death. The gross estate figure will be before liabilities like debt and taxes are deducted. The next step will be to subtract all the debt, funeral, and administration expenses. This will give you the adjusted gross estate. We would then normally subtract the property passing to the surviving spouse. In your case, your spouse no longer plays a factor but that may come to play if you decide to remarry and include your possible future spouse in your will. After we have taken out these items we would come up with your taxable estate. We will have to add the adjusted taxable gifts. This would be the excess of $13,000 annual gift exclusion amount. Under some special circumstances, if the gift was included in the gross estate it would not have to be reported again. Once this is done we will have you estate tax base. We then can find your tentative estate tax from the tax table. Our next step would be to subtract gift taxes payable on gifts includible in the estate tax base. We also have to subtract the applicable credit amount. The applicable credit is also known as the unified credit. This credit applies to both the gift and estate taxes. In 2012 the maximum unified credit is at $1,772,800 and the applicable exclusion amount is at $5,120,000. If after all this is done and a tax is still payable we will subtract other possible credits. These credits would include state tax credits, the credit for prior transfers and the foreign tax credit. The final result would be the tax payable that is due with the estate tax return. Gift and estate taxes work together and there is a specific purpose to that. While you are alive, and gift transfers may be subject to the federal gift tax. After your death, the estate transfers (property and assets) may be subject to federal estate tax. The reason these two taxes work together is so at the time of your death you cannot avoid the estate tax by giving away your property. The one good thing is that they both have exclusions that we can take advantage to avoid taxes. A gift and estate lifetime exclusion can work together to allow you to transfer up to $5,120,000 of lifetime gifts. They both will not be imposed with gift or estate tax. Anything after this exclusion will be subject to the 35% tax rate and that goes for both gift and estate tax. Another way they are intertwined is that if you have to make large gift tax payments during your lifetime this would result in lower estate taxes. In some circumstances the combine total of the early gift taxes and the later estate tax would give you an even lower estate tax that you would have gotten with the estate tax alone. This would then allow you to pass on even higher values to your beneficiaries. There are a few estate tax strategies that I want you in on and that will eventually lower you estate tax. First is marital transfer, which neither lifetime gifts nor bequests at death to one’s spouse are subject to estate taxes. This type of transfer might be an incentive for you to remarry but don’t recommend that be your only reason for remarriage. Another strategy is lifetime gifts to children and grandchildren. An example of this is to give annual gifts of $12,000 to any number of persons. By giving this gift a husband and wife can give a collective amount of $24,000 per year per recipient without having to incur a gift tax. This can add up to a substantial amount over a number of years. Uniform transfer to minors is another option. You can accomplish this by gifting to the children that are still minors which is usually given to a custodian for the benefit of the child. This would be distributed to the child when the child reaches 18 and like other gifts would be subject to an annual exclusion for lifetime gifts. Irrevocable life insurance trusts are available for you to use. To do this you would be transferring small amounts of your estate that are equal to the amount of a life insurance premium to an irrevocable life insurance trust. When this is done, you will be reducing your taxable estate and creating a much larger asset outside of the estate. The life insurance proceeds are generally not taxable. A private annuity can be made to make a sale of an asset to a younger generation in exchange for an unsecured promise. This promise is to pay annual amounts to the seller for the seller’s lifetime. Furthermore, charitable transfers can reduce the size of the estate and thereby reduce the estate taxes. Lifetime gifts provide an additional benefit of an income tax deduction. This last one I think is one of your best bets for transferring your estate to your child or children. A family limited partnership can provide a valuable estate planning tool to assist your family in transferring ownership of family owned businesses. This would also help protect your family assets from creditors as an added bonus. Considering that you will be making larger amounts of money, this option permits taxation of partnership income at your child’s lower tax rates. This plan offers plenty of intriguing options but also the added features of the family limited partnership flexibility and revocability. With your son’s possible criminal record, this gives you control in case things don’t pan out like you wish. What is generation skipping transfer? A generation skipping transfer is shift of property by gift to a person who is two or more generations below that of you. For years wealthy individuals gave away their fortune or property to grandchildren without paying federal estate taxes. This tax was made to prevent people avoiding this tax by skipping generations. This tax is only due when a skip person receives amount in excess of GST estate tax credit. One good thing is that most people will never encounter the GST tax because the tax credit levels are pretty high. Currently taxpayers are entitled to a $5 million GST tax exemption. Leaving a dynasty trust offers two advantages to the GST exemption. One is that the trust will escape all transfer taxes when the child dies. I would then pass tax-free to the grandchildren. The trust can be protected from the claims of creditors and to some extent, money seeking ex-spouses. Overall I hope I have given you some ideas on what to do and how to avoid estate taxes. Estate taxes can be avoided and you don’t have to take it sitting down. There are plenty of tax loopholes that you can still take advantage of. Now for the matter of your son it is in my personal recommendation for you not to just give your child, Jackson, the gift of three million. As there will be a gift tax that will apply to it for this current year that can be avoided. Instead I hope you decide to make a family limited partnership as to give you control of that money and still give your son the opportunity to pursue his dream to make custom cabinets. Eventually you can leave the company to Jackson after you know that the felony charges will not affect him and he has shown promise in maintaining the company. This once again is my recommendation but you have the option to do as you see fit. You are not limited to this and we can always work together to find something that will fit your c hildren or family needs.

Notes on John Locke :: Second Treatise on Civil Government

Notes on John Locke (1632-1704), selections from The Second Treatise of Government (1690) As we will examine it, a defining theme of the American experience from Thomas Jefferson through Elizabeth Cady Stanton to Martin Luther King, Jr. is democratic revolution: these and other major figures seek to change the existing social structure, in order to expand the circle of democracy - to encompass ever larger groups of people within a democratic framework which recognizes the basic equality and rights of each member. Using Jefferson as the starting point, the circle of democratic rights initially includes white males over the age of 41 who meet certain property requirements. Elizabeth Cady Stanton seeks to enlarge this circle to include women - as Martin Luther King, Jr., seeks to enlarge the circle to include people of color. How do you argue for revolutionary change? The American experience is striking not only for its theme of revolutionary change: more fundamentally, these diverse calls for revolution all rest on a shared, central argument. This argument begins from certain premises, and uses those premises to support a specific conclusion - the conclusion that democratic revolution, radical social change in the direction of increasing equality with regard to rights and standing before the law, is justified. The shared argument looks like this: [P1] Governments (Jefferson, Cady Stanton) and laws (Martin Luther King, Jr.) are legitimate only if they rest on the consent of the governed and protect basic rights. [P2] If governments and laws lack this consent, and/or fail to protect these rights, then [C1] such governments are no longer legitimate, and/or such laws are unjust. [P3] Illegitimate governments and/or unjust laws require no allegiance. Therefore, [C2] Illegitimate governments and/or unjust laws must be dissolved and replaced with legitimate governments and/or just laws i.e., governments and/or laws which rest on the consent of the governed and protect basic rights (i.e., which meet the conditions of [P1]). While Jefferson first articulates this argument as the central justification for the American Revolution, we will see this argument used to support the struggle for women's suffrage (Cady Stanton) and the struggle for civil rights for American blacks (Martin Luther King, Jr.). But Jefferson did not invent this argument or its underlying assumptions. Among other sources, Jefferson was deeply influenced by Locke's views on human nature and the political arrangements befitting that nature - especially as Locke articulated his political philosophy in Two Treatistes of Government (1690).

WMDA

WMDA instance surveyThe architectural house, West Midlands Designers and Architects Ltd. ( WMDA ) , was a profit-making and successful concern three old ages age. A closely knit group built a friendly and harmoniousness atmosphere under the direction of Russell Quinn. There are 10 staff working for this design and architecture house. However, the market collapsed and economic system is on crisp downswing. WMDA has less work to manage. Under this circumstance, the foreman decides to happen an acceptable and just method to lay-off four staff in order that the house can go on to last in this competitory market. There are four possible methods to hold decide-making, but, which manner can be a just determination and how to make up one's mind who would be excess will be analyzed and explained below. Russell Quinn has considered four possible methods: Last in – first out ( LIFO ) ; Voluntary redundancy ; Selection on virtue ; Peer choice included. Every coin has two sides, these four methods besides have their ain strength and failing. First of all, LIFO is the easiest, simplest, traditional method. Additionally, a steady and long history company should necessitate some gifted and full of new thoughts immature employee, non all old and experience employee to pull off the house. On contrast, the freshman came to the house in a short period, therefore, the house has input less money and preparation on them. For illustration, Paul is a no experience fresher in the company and have non created some value or major part for the company. Even though the house may blow recruit and advertisement money spent earlier, it is the best manner to salvage money than lay-off an experience labour remaining in the house for several old ages. However, the house besides need to see if makes the youngest designers redundant, they may see the house has age favoritism. Another method is Voluntary redundancy. Employees own the sentiment that they have the right to take, non oblige to go forth, furthermore, they think the house esteem them in this pick. Hence, this method can let go of concern and fright of the other employee. However, this may non be a good method. First, it is non just wholly. The company normally has a predetermined program who will be laid off so that the top direction will use some method to coerce some staff, such as conversation, deduction and exert force per unit area, etc. Additionally, to a certain extent, it may be a venture for the company. Sometimes the house will lose some superb staff or some you want to go forth buttocks. In comparing, Selection on virtue is much more just. Every house wants to hold superb public presentation and value staff who has the capableness to convey benefit to the corporation. However, merely to detect one staff ‘s result can non judge it is superior or non. Working procedure may be important, for illustration, new employees have less chance and clip to make value and outstanding design, we can merely judge them harmonizing to working procedure. Last, Peer choice is non really utile. Even though the communicating and apprehension among employees are much better than director to employee, therefore, to some grades, equal assessment has valuable mention. However, under this circumstance, staff may all desire the house to utilize another method ( slash wage, take a vacation, work rotary motion, etc ) than make staff redundant. Furthermore, fondness may be when they submit names. As what has been analyzed above, merely to do usage of one method is non just and unreasonable. Integrated attack should be an appropriate manner. Virtually, the house should hold known its nonsubjective, long-run development mark good and travel over every item ( hypertext transfer protocol: //uk.askmen.com/money/career_200/248_how-to-lay-off-employees.html, accessed on Dec 20 2009 ) , public presentation assessment is a important and most utile method to mensurate staff, equal assessment besides can be valuable mention to judge staff ‘ contribution.. Some people may non be leave behind if their end are non equal to the involvement of the house. For illustration, Henry wants the company to diversify into new countries, the house is at low tide that there is non adequate money to put in another concern, which ne'er has invested before. Additionally, Hiroshi wishes Nipponese companies to put up in Britain, yet the fiscal state of affairs is non allow. In decision, the company is loath to lay-off employee. Hence, ne'er make a determination before punctilious deliberation. Harmonizing to the house ‘s monetary status and corporate involvement to do a long-run aim, so remain staff who can assist company to win the conflict. I recommend that the house should do out a theoretical account for development in future and communicate with all employee in the company often. It can assist protect against staff anxiousness and avoid staff job-hopping. Reward superior designers besides be a good manner to promote and back up the remainder of them as a consequence of morale and coherence betterment. On the other side, the house should esteem and back up the staff redundant. Recommendation missive and friendly salutation besides can be a good manner to comfort. ( hypertext transfer protocol: //www.chinahrd.net/ZHI_SK/jt_page.asp? articleid=178823, accessed on Dec 2 2009 )Reference & A ; # 65292 ;1, ZhiZhong Chen, Face Layoff Employee Correctly ( 2009 ) , hypertext transfer protocol: //www.chinahrd.net/ZHI_SK/jt_page.asp? articleid=178823 & A ; # 65292 ; accessed on Dec 2 2009 2, Dimitri A.C. Ly, hypertext transfer protocol: //uk.askmen.com/money/career_200/248_how-to-lay-off-employees.html, accessed on Dec 20 2009

Audience in Rhetoric and Composition

In rhetoric and composition, audience  (from the Latin—audire: hear),  refers to the listeners or spectators at a speech or performance, or the intended readership for a piece of writing. James Porter notes that audience has been an important concern of Rhetoric since the fifth century B.C.E., and the injunction to consider audience is one of the oldest and most common suggestions to writers and speakers (Encyclopedia of Rhetoric and Composition, 1996). Examples and Observations Your readers, those people you are trying to reach with your writing, constitute your audience. The relationship between your audiences needs—based on its knowledge and level of expertise—and your own selection and presentation of evidence is important. Much of what you say and how you say it depends on whether your audience is a group of experts or a more general audience consisting of diverse people interested in your topic.Even the way you organize your writing and the amount of details you include—the terms you define, the amount of context you provide, the level of your explanations—depends in part on what your audience needs to know.(R. DiYanni and P. C. Hoy II, Scribners Handbook for Writers. Allyn, 2001) Knowing Your Audience Knowing your audience means understanding what it is that they want to know, what they are interested in, whether they agree with or oppose your central arguments, and whether they are likely to find your subject matter useful. You also need to keep in mind the diversity of the audience—some of them might want knowledge while others want to be entertained.(David E. Gray, Doing Research in the Real World. SAGE, 2009)In short, knowing your audience increases your ability to accomplish your purpose for writing.(George Eppley and Anita Dixon Eppley, Building Bridges to Academic Writing. McGraw-Hill, 1996)Writing a book is a solitary experience. I would hide from my own family in a tiny room next to our washer/dryer and type. To keep the writing from being too stiff, I tried to imagine I was having a conversation with a friend.(Tina Fey, Bossypants. Little, Brown, 2011)Forget your generalized audience. In the first place, the nameless, faceless audience will scare you to death and in the second place, unlike the theater, it doesnt exist. In writing, your audience is one single reader. I have found that sometimes it helps to pick out one person—a real person you know, or an imagined person and write to that one.(John Steinbeck, interviewed by Nathaniel Benchley. The Paris Review, Fall 1969) How to Increase Your Awareness of Audience You can increase your awareness of your  audience  by asking yourself a few questions before you begin to write: Who are to be your readers?What is their age level? background? education?Where do they live?What are their beliefs and attitudes?What interests them?What, if anything, sets them apart from other people?How familiar are they with your subject? ​(X.J.  Kennedy, et al.,  The Bedford Reader, 1997) Five Types of Audience We can distinguish five types of address in the process of hierarchical appeals. These are determined by the kinds of audiences we must court. First, there is the general public (They); second, there are community guardians (We); third, others significant to us as friends and confidants with whom we talk intimately (You which internalized becomes Me); fourth, the self we address inwardly in soliloquy (the I talking to its me); and fifth,  ideal audiences whom we address as ultimate sources of social order.(Hugh Dalziel Duncan, Communication and Social Order. Oxford University Press, 1968) Real and Implied Audiences The meanings of audience...tend to diverge in two general directions: one toward actual people external to a text, the audience whom the writer must accommodate; the other toward the text itself and the audience implied there, a set of suggested or evoked attitudes, interests, reactions, [and] conditions of knowledge which may or may not fit with the qualities of actual readers or listeners.(Douglas B. Park, The Meaning of Audience. College English, 44, 1982) A Mask for the Audience [R]hetorical situations involve imagined, fictionalized, constructed versions of the author and the audience. The authors create a narrator or speaker for their texts, sometimes called the persona—literally the mask of the authors, the faces they put forward to their audiences. But modern rhetoric suggests that the author makes a mask for the audience as well. Both Wayne Booth and Walter Ong have suggested that the authors audience is always a fiction. And Edwin Black refers to the rhetorical concept of audience as the second persona. Reader-response theory speaks of implied and ideal audiences. The point is that the author has already begun to craft the appeal as the audience is envisaged and assigned to a position...The success of the rhetoric  depends partly upon whether members of the audience are willing to accept the mask offered to them.(M. Jimmie Killingsworth, Appeals in Modern Rhetoric: An Ordinary-Language Approach. Southern Illinois University Press, 2005) Audience in the Digital Age Developments in computer-mediated communication—or the use of various forms of computer technology for writing, storing, and distributing electronic texts—raise new audience issues...As a writing tool, the computer influences the consciousness and practice of both writers and readers and changes how writers produce documents and how readers read them...Studies in hypertext and hypermedia point out how in these media readers contribute actively to textual construction in making their own navigation decisions. In the realm of interactive hypertext, the unitary notions of text and author are further eroded, as is any notion of the audience as a passive receiver.(James E. Porter, Audience. Encyclopedia of Rhetoric and Composition: Communication from Ancient Times to the Information Age, ed. by Theresa Enos. Routledge, 1996)