Southern New Hampshire University
TAX 655 Milestone Two Guidelines and Rubric
You will submit a draft explaining the tax effects of salaries if cash is withdrawn from a business. You must also explain the tax consequences of paying the owners based on the taxable entity selected for the business, as well as the tax consequences for each individual's personal tax returns. This assignment will address Section I, Parts D and E of the critical elements of the final project.
Specifically, the following critical elements must be addressed:
I Memorandum D. Explain the tax effect based on providing $180,000 per year for the client's salary and $70,000 per year for his daughter's salary if they withdraw cash from the business or pay dividends as appropriate. E. Consider the tax law in reference to the recommendation and how the decision will affect the daughter's tax return.
one-inch margins, and at least three sources cited in APA format.
Critical Elements
Proficient (100%)
Needs Improvement (75%) Not Evident (0%) Memo: Tax Effect on Cash Explains the tax effect based on Explains the tax effect based on Does not explain the tax effect based Withdrawals or Dividends providing the client and his daughter providing the client and his daughter on providing the client and his salaries if they withdraw cash from salaries but details are inaccurate or daughter salaries the company or pay dividends cursory Memo: Percentage of Justifies the percentage of ownership Justifies the percentage of ownership Does not justify the percentage of Ownership the client's daughter should have the client's daughter should have but ownership the client's daughter based on the business recommended details are irrelevant or cursory should have Articulation of Response Submission has no major errors Submission has major errors related Submission has critical errors related related to citations, grammar, to citations, grammar, spelling, to citations, grammar, spelling, spelling, syntax, or organization syntax, or organization that syntax, or organization that prevent negatively impact readability and understanding of ideas articulation of main ideas Total
Value 40
40
20
100