CFP Tax Flashcards
MFS Capital Loss
$1,500
If a partner brings property into the partnership, use FMV or basis?
Must use tax basis (this is the limit for losses as well)
AMT Formula
Regular taxable income
AMTI
AMT Base
Gross AMT
Tentative Minimum Tax
AMT
Regular taxable income to AMTI
Add: Tax preference items
Add: Standard deduction
Add/Subtract: AMT adjustments and tax preference items
AMTI to AMT base
Less: Exemption Amount
AMT Base to Gross AMT
Times AMT tax rate
Gross AMT tax to Tentative minimum tax
Less: AMT foreign tax credit
TMT to AMT
Less: Regular tax liability
Penalty for a frivolous return
$5,000
Penalty for negligence
20% of amount of deficiency
Penalty for fraud
75% penalty
Failure to file
5% of the unpaid taxes for each month up to 25%
Minimum $435 penalty if more than 60 days
Failure to pay
0.5% per month up to 25%
Failure to furnish a copy to taxpayer
$50
Failure to sign return
$50
Failure to furnish ID number
$50
Failure to retain copy or list
$50
Failure to file correct info
$50
Failure to determine eligibility for benefits
$545
Form 5498
Total annual contributions to IRA accounts
NII Threshold MFJ
$250,000
NII Threshold Single
$200,000
NII Threshold MFS
$125,000
NII Threshold HoH
$200,000
NII Threshold Widower
$250,000
Tax Exclusions
M uni bond interest
A ccident and health plans ER premiums
F ringe
I nheritance & gift
A ccident and health amount received
S cholarships
P ersonal residence gains
A doption assistance
D eath benefit
D ependent care assistance
E ducational assistance program
D ebt discharged
M eals and lodings
I nterest on education bonds
C ompensatory damages
S upport payments received
Adoption Assistance Exclusion
up to $14,890
Educational Assistance Program
up to $5,250
FBAR Must be submitted
when value of all foreign accounts (FFA) exceeds $10,000 at ANY TIME during the calendar year reported (finCEN Form 114)
FBAR form
FinCEN Form 114
FATCA form
Form 8938
FATCA requirements US residents
MFJ:100,000 at end of year; 150,000 at any time
Single: 50,000 at end of year; 75,000 at any time
FATCA requirements non US
MFJ: 200,000 at end of year; 300,000 at any time
Single: 400,000 at end of year; 600,000 at any time
Qualified plan NOT exceptions to 10% penalty
Education. health insurance while unemployed & first time home purchase
SIMPLE IRA distributions
25% penalty in first 2 years
Charitable Carry Forward
5 years
Section 121 Exclusion: if home is transferred as a result of divorce
Divorced spouse ownership period is ADDED to the taxpayer’s period of ownership
Schedule H
Household employment taxes, when employee paid at least $2,300 or all cash $1,000+ during any quarter
Mileage Deduction
$0.14 per mile
What can be deducted when contributing charitable services?
Unreimbursed expenses (transportation, lodging, meals)
What does not qualify for Section 179 treatment?
Property, air conditioning/heating
Section 179 Maximum
$1,080,000
Section 179 Expense Limitation
Up to the firm’s net profit
Max depreciation on Section 179
Expense up to net income and choose MACRS for remainder (can use year 1 MACRS as additional depreciation)
Need written acknowledgment from charity for charitable contribution deduction
$250
Child & Dependent Care Credit
To cover childcare expenses for children under 13, Nonrefundable, minimum credit is 20% of qualified expenses w/ AGI over $45,000
Child Tax Credit
Dependent under 17, max credit is $2,000 per person (AGI under $200k single, $400k MFJ); additional credit can be partially refundable ($1,500)
QBID
lesser of 20% of QBI or 20% of taxable income (taxable income = AGI - capital gains - standard deduction)
