Gross Income (M2-M3)

Question 1

What must be met for gifts to be excluded form gross icnome

Answer 1

1. selected for award with no part on me. (no future services rendered)
2. I gave money to charity or governmental unit right away. had them basically wire directly to them. never hits my account

Question 2

Accruable expense?

And example

Answer 2

is which the services have been received/performed but have not been paid for by the end of the reporting period.

A repair completed prior to year end but not invoiced.

Question 3

Typically how much is the group term life insurance nontaxable for? and how is it treated?

Answer 3

50,000$ and you would take it out of total coverage amount before multiplying by cost per $amount

Question 4

In the case of noncash income, the amount of income to be reported is?

Answer 4

fair market value of the property or services received

Question 5

When are qualified defined contribution plans taxed?

Answer 5

at distribution

Question 6

interest on US treasury certs and a refund on fed income tax return, whats taxable?

Answer 6

Both

Question 7

Tax benefit rule is?

Answer 7

itemized deductions received in subsequent year are included in year received income. Only amount of tax benefit (amt exceed standard deduction) is taxable of that refund

Question 8

how are traditional ira withdrawls taxed

Answer 8

ordinary income at marginal tax rate

Question 9

when using IRAwithdraw for downpayment, is it included as taxable for irniary income still?

Answer 9

yes

Question 10

Is prepaid rent, income in year received or year service provided? Accrual vs Cash

Answer 10

Same for both, it is included. So last months rent would be in the month/year inc it is received