Some examples of direct taxes include income taxes, taxes on assets and real property and personal property taxes. These are taxes that a person must pay directly to the entity collecting the tax. The taxpayer is not able to shift the burden of these taxes onto another individual or group.Know More
The income tax is an example of a direct tax because the person who owes the tax must pay it out of his own pocket. Property taxes must be paid by the property owner to the local municipality and therefore qualify as direct taxes also. Taxes on assets, which include estate taxes that the heirs to an estate must pay if the estate's value is over a certain amount, are also considered direct taxes.
Direct taxes contrast with another class of taxes known as indirect taxes. With an indirect tax, a person pays the tax to another organization or group that then turns the taxes over to the government.
The most prominent example of an indirect tax is the sales tax. When people purchase goods in certain states, they are required to pay a sales tax. They do not pay the tax directly to the state, however. The merchant collects the tax from the purchaser and then turns the money over to the government.Learn more about Taxes
Information on paying personal property taxes online is found on the local city or county government website. It is the duty of city and county tax and revenue collectors in the United States to collect local property taxes, explains the Hillsborough County Tax Collector‘s official site.Full Answer >
One example of an indirect tax is sales tax, which is imposed entirely on the buyer rather than both on the seller and the buyer. Indirect taxes are taken from stakeholders that are generally not thought to be entirely responsible for the amount being taxed.Full Answer >
Some examples of legal deductions include accounting fees, business travel, entertainment, home office costs and legal fees as well as rent, utilities, and research and development, according to Entrepreneur. Each of these deductions has its own rules and qualifications to be valid.Full Answer >
The Internal Revenue Code in Title 26 of the United States Code establishes the tax code and its regulations, according to IRS.gov. For example, Title 26, Subtitle A, Chapter 1, Subchapter A section 3 of the code authorizes tax tables for individual taxpayers who itemize their deductions.Full Answer >