Discussions about Various Tax Laws (Essay Sample)

Tax Laws
Student's Name
University
Course
Professor
Date
Question 1
Tax deduction decreases the taxable income lowering the tax liability of an individual. Some of the tax deductions allowed in tax laws include business expenses necessary and ordinary for the trade practice, such as capital loss on stock (Givati, 2019). Others are charitable contributions and costs to cover individuals living expenses. It is only beneficial to itemize deductions instead of taking a standard deduction when the total amount receivable is more than the standard deductions. Itemizing is an excellent strategy to maximize tax benefits when the expenses are more than the value of standard deductions.
Question 2
The common law states that that individual solely and entirely owns property owned by one partner of a married couple. If both married couple's names are on the deed or title of the asset, then the property is owned by the parties. If one spouse dies, the property is distributed according to probate or their will (Pantekoek, 2020). The surviving partner would own the property if it were under a tenancy by the entirety and joint tenancy with the right of survivorship. When the property is under tenancy in common, another person can claim the asset per the deceased's will. In case of divorce, the court decides how they will share the property, or the couple can enter into a mutual agreement. Community property states property acquired in the marriage period is community property. Hence, marital property is owned by both married parties. Marital property in community property states starts at the marriage, and it ends once the married couple part ways.
Question 3
The alternative minimum tax is an additional tax schedule that applies to individuals with a very high ratio of exemptions and deductions to