7 Flashcards
General Business Credit is limited to your net income tax minus
The greater of the tentative minimum tax or 25% of net regular tax liability above $25,000.
A net operating loss is defined as the excess of
allowable deductions (as modified) over gross income
The disallowance of not-for-profit activity losses applies to all of the following except
- Corporations
- Trusts
- Partnerships
- S Corps
Losses incurred by individuals, S corporations, partnerships, and estates and trusts that are attributable to an activity not engaged in for profit are generally deductible only to the extent of income produced by the activity.
The amount of the loss for partial destruction of business property is the lesser of
he taxpayer’s adjusted basis in the property or the difference between the fair market value of the property immediately before and immediately after the casualty.
If opening and closing inventories are properly reported, a theft or casualty loss to inventory will automatically be claimed through the increase in
cost of goods sold.
Business Energy Credit property requires
the property must be new, not used
Income from _______ is not included in NOL Calculations
Dividends, Interest Income and loss on small business stock received are not included
An NOL generally includes only items that represent
business income or loss
An employers long-term family assistance recipient allowable Work Opportunity Credit
40% of the first $10,000 of qualified first-year wages paid
Contributions made by a self-employed person (or an employee) to a retirement plan ARE or ARE NOT treated as attributable to the trade or business of the taxpayer
ARE NOT- they are treated as a nonbusiness deduction.
expenses that are deductible whether or not they are incurred in connection with a hobby, .
taxes, interest and casualty losses, are deductible even if they exceed hobby income
