Cpa Flashcards
Related party sale or exhange sale loss
Loss is disallowed if it results from a sale or exchange between a corporation and a person who owns (directly or constructively) more than 50 % of its stock
What additions should be made to taxable income when earnings and profits are computed?
Municipal interest;
Life insurance income;
Dividends received deduction;
Deductions claimed for carryforward from prior years;
The deferred portion of a gain from a current installment sale;
The amount of depreciation deducted in excess of straight-line.
Items that are not deductible for purposes of computing alternative minimum taxable income for individuals.
- State income tax
- Medical Expenses amounting to 10% of AGI
- Home Equity mortgage interest loan when NOT used to buy a home
What effect does property distribution have on earnings and profits?
- Reduce E&P by greater of adjusted basis or value, then reduced by any liabilities assumed by shareholder; 2. Distributions of appreciated property also increase E&P by amount of gain.
Tax Schedule A
A- Itemized Deductions (Personal and Employee expenses)
Schedule B
Interest and Dividend Income
Schedule C
Profit and loss from a business ( Employer expenses) / 1099 Income
Schedule D
Capital Gains and Losses ( S/T and L/T Investments)
Schedule E
Supplementary income or Loss (RRF-COP) - rental income - royalties ( copyrights, oil/gas leases, patents) Flow through entities ( s-corp, partnerships, estates and trusts)
Schedule F
Profit and Loss from Farming
1040x
Amended return ( 3 years)
Foreign Tax Credit
1116
4562
Depreciation and Amortization
4797
Sale of L/T business Property ( Not inventory or receivables - schedule C)
AMT - Individuals - Adjustments - SIMPLE
Standard Deduction MAY NOT BE CLAIMED
