Day 5 Flashcards
1
Q
What is the Casualty loss deduction? How is it calculated?
A
Adjusted basis of property less insurance reimbursement less $100 less 10% AGI
MCQ-01936
2
Q
Casualty loss:
A
The lesser of the decrease in FMV or adjusted basis
MCQ-03998
3
Q
What is the maximum Child/Dependent Care credit?
A
- One Child/Dependent = $3,000
- Two Child/Dependent = $6,000
Credit Calculation:
1. Earned income of lessor spouse
2. Actual expenses incurred
3. Maximum allowable amount ($3,000 or $6,000)
4. Multiplied by applicable AGI % (20% or 35%)
MCQ-15616
4
Q
What expenses qualify for the adoption credit?
A
- Legal fees
- Agency fees
MCQ-11783
5
Q
AGI limit for child tax credit for MFJ
A
$400,000
$2,000 per qualifying Child
MCQ-15618
6
Q
Is there a penalty for late payment if taxes due are under $1,000?
A
No
MCQ-02084
7
Q
Net Investment Income Tax is:
A
3.8% of the lesser of:
- Net Investment Income
OR - The excess of modified AGI over a threshold
MCQ-14735
