FinalREG

Question 1

Are after tax medical insurance premiums consider medical expense? what about drug addiction centers?

Answer 1

Yes. not to repay lost income nor disability premiums (medical and hospital premiums are med exp.) but to medical expense, subject to excess of 10%. Insurance premiums paid by ER are not expenses for 1040. / all included as medical (lodging/meals/ etc.) increase in value of house subtracted from qualified exp. 7.5% 65 older

Question 2

Unreimbursed business exp. included in Sch. A

Answer 2

dry cleaning while traveling not at office, only cost of buying uniforms are included

Question 3

How are fed income tax exp on books treated for IT return?

Answer 3

not an expense thus added back to books income

Question 4

How to calculate realized gain for Ccorp?

Answer 4

normal, FMV (-) AJE

Question 5

How is the health insurance premium to the partners treated?

Answer 5

As a guaranteed payment to the partners

Question 6

How much can be deducted if sell of personal pty occurs at a loss?

Answer 6

Zero, personal losses are not deductible

Question 7

When insurance on pty is reveived how is it treated?

Answer 7

insurance received - basis (lowest of either change in FMV or AJE)= gain , if reinvest lower than the gain then recognized the extra cash received not reinvested as gain

Question 8

Are related party gain reported?

Answer 8

Yes. most of them are reported. Related party losses are not.

Question 9

estimated tax for individuals and Ccorps?

Answer 9

individual 90% CY, 100% PY under $100k, 110% PY if $150k/ 100% CY and 100%PY for small copr, 100% CY for large corps.

Question 10

How are traditional IRA/ROTH receive treated?

Answer 10

traditional received included as income principal and earnings. traditional nondeductible then principal not income but earnings are taxable/ ROTH not included as income.

Question 11

How are traditional IRA/ROTH contributions made treated?

Answer 11

traditional paid adjustment to AGI up to $5,500 per($1k for catch-up over 50yrs old), traditional nondeductible when contributed but earnings are taxed when receive/ROTH not adjustment to AGI.

Question 12

premiums paid treated by Ccorp

Answer 12

if premium is paid by corp for corp benefit = not deductible(collection not income but expense not deductible” for AMT collection is added back”), if premium paid by corp for EE’s = deductible

Question 13

premiums received treated by individual

Answer 13

first $50k received from ER not income, excess is included as income/taxable. although interest is income

Question 14

What does at risk limitation means?

Answer 14

basis will go up to basis at risk which excludes nonrecourse since is not a risk liab.

Question 15

Are registration exemptions for LT notes?

Answer 15

No. thus will have to file under the sec 1933

Question 16

How much can be deducted as a capital loss on 1244 stock loss?

Answer 16

up to $50k for single and $100k for MFJ + $3k

Question 17

How are nonliquidating distributions by Ccorps treated by shareholder receiving it?

Answer 17

treated as dividend thus, either ordinary income until E&P, return of capital until basis, capital gain if excess.

Question 18

Where is health insurance premiums included?

Answer 18

as medical expense, self insurance is an AGE to AGI

Question 19

For Ccorps how does the special deductions applies if NOL balance?

Answer 19

charitable deduction does not applies at all but dividend still subject to normal * corresponding %