Businesses

Question 1

Rental loss phaseouts

Answer 1

MAGI $100,000 - $150,000

Question 2

MAGI is:

Answer 2

AGI not deducting IRA, minus Social not including PAL

Question 3

Section 179

Answer 3

Up to $1,050,000.
Phaseout: $2,620,000
Automobiles $10,200

Question 4

Start Up costs

Answer 4

Amortize for 15 years (180 months)
Can deduct $5,000 (Phase out is $50,000)

Question 5

General Business Credit is limited to”

Answer 5

The net income tax minus greater of:
25% over tax liability of $25,0000
Tentative alternative minimum tax

Question 6

Small Employer health Insurance Credit

Answer 6

The employer must pay min. of 50% of the premium costs.
The credit is 50% of the cost.
25 employees maximum
Average wage less than $55,600

Question 7

Disabled Access tax Credit

Answer 7

50% above $250 with max of $5,000
Less than 30 employees or less than $1M income.

Question 8

Tax credit - Pension Plan Start Up Cost

Answer 8

50% of cost per employee
limit is $250 / employee
Limit $5,000 Minimum is $500

Question 9

Research tax credit

Answer 9

20% above base amount

Question 10

Rehabilitation tax credit

Answer 10

20% on 5 years (Minimum expense $5000)

Question 11

Childcare tax credit

Answer 11

25%. Max credit $150,000

Question 12

Penalty for Employer share Responsibility (not issue health plan)

Answer 12

$2700 per employee above 30 employees

Question 13

Penalties for late filing partnership

Answer 13

$210 / partner / month up to 12 months.

Question 14

Entity selection filing form 8832 - the effective date ,must be within

Answer 14

75 days before or 12 months after filling the form

Question 15

Basis of stock to shareholder in exchange of property

Answer 15

AB of property
- Boot
- Liability
+ Gain recognized
+ dividend

(Basis of the corporation in property is AB + gain recognized by shareholder)

Question 16

Dividend deduction between corporations, depends on ownership percentage:

Answer 16

<20% - 50%
>=20% - 80% Deduction is 65%
>= 80% Deduction is 100%

Question 17

Maximal contribution of an employee to SIMPLE is

Answer 17

$13,500 ($16,500 above 50)

Question 18

Maximal contribution of an employee to SEP is

Answer 18

25% or $58,000 (Lesser of)

Question 19

Maximal contribution for qualified IRA plan is

Answer 19

100% of wages or $58,000 (Lesser of)

Question 20

SIMPLE early withdrawals penalties

Answer 20

Before 59 1/2. 10% but is 25% during the first 2 years.

Question 21

SEP Self employment worksheet
Maximum deductible contribution

Answer 21

Calculate (plan rate) / (plan rate +1)
Multiply result by (net earnings - FICA)
Take the lesser of this and $290000*plan rate
Max is always $58,000

Question 22

Business home

Answer 22

Simplified $5 / sqft up to 300 sqft

Question 23

SIMPLE max

Answer 23

$13,500 ($16,500 above 50)
Employer can match up to 3% of wages

Question 24

Deadline to file Form 5500 - report of IRA plans

Answer 24

Last day of 7th month

Question 25

Day care by employer rate is

Answer 25

25% allowed for deduction

Question 26

Qualified plan:
401k elective deferrals plans limit is:

Answer 26

$19,500 ($26,000 above 50)

Question 27

Charitable contributions by C corps is limited to

Answer 27

25% of TI for 2020 / 2021. 10% otherwise.

Question 28

Loss

Answer 28

Capital: back 3 forward 5.
NOL: up to 2017 back 2 forward 20
208/2019/202 back 5 forward indefintly.
2021 0 back forward indefinitely.

Question 29

Replacement period for indirect involuntary conversion

Answer 29

2 years from end of tax year.
(Some cases 3 years)

Question 30

Personal exemption estates and trusts

Answer 30

Estate: $600 Simple trust $300, Complex trust: $100

Question 31

work opportunity credit for long term family assistance is

Answer 31

40% for the first year max $4000
50% for the second year max $5000