Adjustments To And From AGI - FY21 Q4 Flashcards
What is the phase out for interest on student loans?
$2,500
How much is deductible for self employment tax?
50% of SE is deductible
How much can be deducted for passive activity losses when the active participation exception is applied?
Up to $25,000 which is reduced by 50% of modified AGI over $100k and no deduction if AGI exceeds $150k
If a home is rented for less than 15 days, how is the rental income treated?
It is excluded from gross income and expense are not deductible as rental expenses
If a house is rented for more than 14 days and personal use is greater than 14 days or 10% of days rented, how is income and expenses treated?
Rental income is included and deductions are limited to gross rental income
What is the early withdrawal penalty on IRAs?
10% plus their tax rate
Which IRA is deductible and which is not?
Traditional IRAs are deductible, Rothy’s are not.
What is the Keogh contribution limit?
The annual contribution is limited to the lessor of 20% of net self employment income before the deduction.
This works out to be 25% of net self employment income after the deduction.
How much can be deducted for contributions to a Coverdell Education Savings Account or a Qualified Tuition Program?
Coverdell Education Savings Account and a Qualified Tuition Program are not deductible.
Hint think about a Roth IRA
