Businesses Flashcards
Rental loss phaseouts
MAGI $100,000 - $150,000
MAGI is:
AGI not deducting IRA, minus Social not including PAL
Section 179
Up to $1,050,000.
Phaseout: $2,620,000
Automobiles $10,200
Start Up costs
Amortize for 15 years (180 months)
Can deduct $5,000 (Phase out is $50,000)
General Business Credit is limited to”
The net income tax minus greater of:
25% over tax liability of $25,0000
Tentative alternative minimum tax
Small Employer health Insurance Credit
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
Disabled Access tax Credit
50% above $250 with max of $5,000
Less than 30 employees or less than $1M income.
Tax credit - Pension Plan Start Up Cost
50% of cost per employee
limit is $250 / employee
Limit $5,000 Minimum is $500
Research tax credit
20% above base amount
Rehabilitation tax credit
20% on 5 years (Minimum expense $5000)
Childcare tax credit
25%. Max credit $150,000
Penalty for Employer share Responsibility (not issue health plan)
$2700 per employee above 30 employees
Penalties for late filing partnership
$210 / partner / month up to 12 months.
Entity selection filing form 8832 - the effective date ,must be within
75 days before or 12 months after filling the form
Basis of stock to shareholder in exchange of property
AB of property
- Boot
- Liability
+ Gain recognized
+ dividend
(Basis of the corporation in property is AB + gain recognized by shareholder)
Dividend deduction between corporations, depends on ownership percentage:
<20% - 50%
>=20% - 80% Deduction is 65%
>= 80% Deduction is 100%
Maximal contribution of an employee to SIMPLE is
$13,500 ($16,500 above 50)
Maximal contribution of an employee to SEP is
25% or $58,000 (Lesser of)
Maximal contribution for qualified IRA plan is
100% of wages or $58,000 (Lesser of)
SIMPLE early withdrawals penalties
Before 59 1/2. 10% but is 25% during the first 2 years.
SEP Self employment worksheet
Maximum deductible contribution
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
Business home
Simplified $5 / sqft up to 300 sqft
SIMPLE max
$13,500 ($16,500 above 50)
Employer can match up to 3% of wages
Deadline to file Form 5500 - report of IRA plans
Last day of 7th month
Day care by employer rate is
25% allowed for deduction
Qualified plan:
401k elective deferrals plans limit is:
$19,500 ($26,000 above 50)
Charitable contributions by C corps is limited to
25% of TI for 2020 / 2021. 10% otherwise.
Loss
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.
Replacement period for indirect involuntary conversion
2 years from end of tax year.
(Some cases 3 years)
Personal exemption estates and trusts
Estate: $600 Simple trust $300, Complex trust: $100
work opportunity credit for long term family assistance is
40% for the first year max $4000
50% for the second year max $5000
