The Kimpton Corporation pays the following taxes during 2011: Federal taxes withheld from employees ........ $26,000 State

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The Kimpton Corporation pays the following taxes during 2011:

Federal taxes withheld from employees ........ $26,000

State taxes withheld from employees .......... 9,000

Social Security withheld from employees ........ 4,850

Kimpton’s share of Social Security taxes ........ 4,850

Federal income tax paid in 2011 with 2010 tax return .... 1,790

Federal income tax paid in 2011 ............ 12,340

Real estate taxes .................. 6,750

State income taxes paid in 2011 ............. 5,720

State income taxes paid in 2011 with 2010 return ...... 690

State tax on capital acquisitions .............. 2,700

Sales tax on supplies .................. 3,250


Also, the county treasurer notifies Kimpton that it is being assessed a special real estate tax of $64,000 for upgrading the sidewalks and sewer connections in the area. The special tax is payable in 4 yearly installments of $16,000. What amount can Kimpton deduct for taxes paid in 2011?


Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Concepts In Federal Taxation

ISBN: 9780324379556

19th Edition

Authors: Kevin E. Murphy, Mark Higgins, Tonya K. Flesher

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