Exam 2 Review Flashcards
Up to how long does a C corporation have to make a charitable deduction and deduct it for the current year?
Up to their filing due date of 1120 (not including extensions)
Can statutory employees qualify for the QBI deduction?
Yes, while normal wages to an employee are not considered for QBI for statutory employees their wages are considered eligible for the QBI deduction
The computation of recapture amounts is not necessary when the business use percentage of section 179 or listed property exceeds what threshold:
50%
Section 197 assets include:
- Goodwill
- Going concern value
- Workforce in place
- Patents
- Copyrights
- Franchises
- Trademarks
- Trade names
A company that accumulates $100,000 or more in taxes on any day during a monthly or semi-monthly deposit period is required to deposit the tax by:
The next business day
Most employers who have employees are required to file a Form 941 on a quarterly basis to report wages paid and payroll taxes withheld. However, special rules apply to some employers
- Seasonal employers do not have to file a Form 941 for quarters in which they have no tax liability because they have paid no wages
- Employers of household employees do not usually file Form 941
- Employers of farm employees do not usually file Form 941 (instead they file 943)
4466
Used by a business to request a refund of its overpaid estimated tax.
A corporation that has overpaid its estimated tax may apply for a quick refund if:
The overpayment is at least 10% of its expected income tax liability and at least $500
How long should a business maintain records relating to the purchase of land?
Until the statute of limitations expires for the year in which the business disposed of the property
When a business is sold through an asset sale, how is the sale generally treated for tax purposes?
Each business asset is treated as being sold separately for determining the overall gain or loss
Crop insurance proceeds and government disaster payments are generally taxable in the year they are recieved. However, a farmer can elect to postpone reporting the income until the following year if he meets the following conditions:
- The farming business must use the cash method of accounting
- Crop insurance proceeds were received in the same tax year the crops were damaged
- Under normal business practices, the farming business would have reported income from the damaged crops in any tax year following the year the damage occured
Employers should use Form 941 to report the following amounts:
- Wages paid to employees
- Tipes employees reported to the employer
- Federal income tax withheld
- Both the employer and employee’s share of SS and Medicare
- Additional Medicare tax withheld
- Current quarter’s adjustments to SS and medicare taxes for creations of cents, sick pay, tips, and group-term life
- Qualified small business payroll tax credit for increasing research activities
Partnership distributions include the following:
- A withdrawal by a partner in anticipation of the current year’s earnings
- A distribution of the current year’s pr prior year’s earnings not needed for working capital
- A complete or partial liquidation of partner’s interest
- A distribution to all partners in a complete liquidation of the partnership
8300: What is considered cash?
Physical money and cashiers checks (personal checks do not count)
SE Taxpayers: Estimated tax dates:
- April 15th
- June 15th
- Septemeber 15th
- January 15th (following year)
