Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

EA Course > Important 2 > Flashcards

Important 2 Flashcards

1
Q

Kiddy tax threshold

A

2500

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Nanny tax threshold

A

2600
Withhold FICA from employee and submit 15.3%

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

AMT add back

A

State and local tax
Personal exemption and standard deduction
Medical expenses
Incentive stock option exercise
Depreciation and depletion
NOL
Tax exempt private activity interest
Passive activity losses
Foreign tax credit
230,700 26% then 28%

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Which form is file with 1040 for Nanny Tax

A

Schedule H

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What are 2 QBI components

A

QBI component
REIT/PTP component

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What are QBI limits

A

182,100 - 232,100 ALL other
364,200 - 464, 200 MFJ

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What are QBI limits

A

182,100 - 232,100 ALL other
364,200 - 464, 200 MFJ

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Could you claim QBI on rental activities?

A

Only if it rises to trade or business or
250 hour by owners, contractors, employees or agents
Keep full logs and record and a statement with tax return is submitted about relying on safe harbor rule.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

If business is not specified service business (SSTB), what happens if AGI is above threshold

A
  1. 50% of W-2 or if greater
  2. 25% of W-2 + 2.5% of UBIA
    Unadjusted Basis Immediately after Acquisition
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

If business is not specified service business (SSTB), what happens if AGI is above threshold

A
  1. 50% of W-2 or if greater
  2. 25% of W-2 + 2.5% of UBIA
    Unadjusted Basis Immediately after Acquisition
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Can MFS get you an advantage for QBI

A

Yes sometimes when you file MFS, you may stay under the AGI threshold and get QBI deduction

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Can MFS get you an advantage for QBI

A

Yes sometimes when you file MFS, you may stay under the AGI threshold and get QBI deduction

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is SSTB De Minimus Rule 1st rule

A

If your gross receipts are less than 25 million and less than 10% are from SSTB, you can qualify for QBI deduction

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is SSTB De Minimus Rule 2nd rule

A

If gross receipts are more than 25 million and less than 5% are from SSTB. The business is not SSTB and QBI deduction is allowed.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

If rental activity is reported on Scedule E instead of Scedule C, could it qualify for QBI deduction?

A

Yes if it is bona fide trade or business or qualify for 250 hours of safe harbor rule.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

On which form QBI deduction is claimed?

A

8995 for Simplified or
8995-A

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What happens with QBI losses

A

They carry forward and reduce future QBI deduction

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Which form is used for kiddy tax

A

Form 8814 for Parent return or
Form 8615 fir Kid’s return

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Which form is used for kiddy tax

A

Form 8814 for Parent return or
Form 8615 fir Kid’s return

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Who is exempt from Nanny Tax?

A

Taxpayer’s spouse, parents or child under 21

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Describe Nanny worker

A

A worker who control what work is done and how it is done qualify for Nanny worker. Nanny, housekeeper, private driver, private nurse, yard worker

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What if kids’ unearned income is 2500?

A

1250 tax free
1250 at kids marginal tax rate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What is estate tax

A

It is death tax. It is imposed on the transfer of property after death.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What is estate tax

A

It is death tax. It is imposed on the transfer of property after death.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

What is gift tax

A

It is imposed on transfer of property before the death if tranferor

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

What is gift tax

A

It is imposed on transfer of property before the death if tranferor

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

When dependent’s estate is created

A

It is created after the death of dependent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

When trust is created

A

Trust is created when taxpayer is alive

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Which form is filed for fiduciary responsibilities

A

Form 56

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

What does executor do about tax liabilities

A

He determines the tax liabilities os estate before he distributes the assets to beneficiaries

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

Could the executor be responsible for estate liabilities

A

May be if he distributes the assets to beneficiaries before the taxes are paid. Only to the extent of tax debt up to the value of assets.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

What form is filed for income upto the death of taxpayer

A

1040

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

What form is filed during the administration of the estate

A

1041

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

What form is used to report tax on taxable estate, when fair value of assets exceed applicable threshold

A
  1. It is not a estate income tax return. It form to calculate estate taxes only.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

What is the due date of 1041

A

15th day of Fourth month (usually April 15). Extension 7004 is filed upto September 30.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

What is income threshold to file 1041 for an Estate

A

Gross income of 600 or any amount if beneficiaries are non-resident alien.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

What is estate exclusion amount

A

12.92 million

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

What is estate exclusion amount

A

12.92 million

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

When form 706 is due

A

9 months after the death of taxpayer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

How do you get the extension for filling 706

A

Form 4768

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

What is maximum tax rate of an estate

A

40%

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

How to claim portability of Deceased Spouse Unused Exclusion (DSUE)?

A

By filing 706 on timely manner regardless of value of the estate.

43
Q

What is Gross Estate

A

It based on FMV of decadent’s property.

44
Q

Which form you use to calculate AMT

A

6251

45
Q

Which form do you use to get AMT credit

A

8801

46
Q

Do dividends from Alaska permanent fund cause kiddi tax

A

Yes

47
Q

Does income from tax-exept bond cause kiddi tax

A

No

48
Q

Does the taxpayer has to materially participate to claim the QBI

A

No, material participation is not required for QBI deduction

49
Q

When must you attach form 1116 to claim foreign tax credit

A

Only if foreign tax paid is 300 or less, you don’t file firm 1116. For MFJ, the amount is 600.

50
Q

Which foreign taxes you can’t deduct?

A

Foreign sales taxes
Foreign property taxes
Foreign real estate taxes

51
Q

How many days you have to live outside of USA, if you don’t have Foreign tax home, to get Foreign income exclusion

A

330 days

52
Q

What do you use tax home for?

A

To determine travel expenses to sole proprietor and residency and if taxpayer qualify for foreign income exclusion.

53
Q

Could taxpayer filing as MFS claim Foreign Income Exclusion?

A

Yes

54
Q

Can you use interest for foreign income exclusion

A

No. Unearned income, including interest, dividends, capital gains, alimony, pension, annuities, and rental income, is not included in foreign income exclusion.

55
Q

If taxpayer claims foreign income exclusion, would he pay income tax and employment tax on the income?

A

He’ll pay only self-employment tax.

56
Q

What is common between Roth IRA and traditional IRA

A

Non-rollover contributions are limited to an annual compensation limit or 100% of the compensation limit, whichever is less.

57
Q

What filing threshold for partnership

A

No minimum threshold. No filing if no activity at all.

58
Q

What filing threshold for sole proprietor

A

400

59
Q

What filing threshold for estate

A

600

60
Q

What filing threshold for trust

A

600

61
Q

What filing threshold for c corp

A

No threshold

62
Q

Who report IRD

A

IRD is not reported on final return. It is reported by who receive it.

63
Q

What is IRD

A

Income earned by taxpayer but received after the death.it could be estate, surviving spouse or beneficiaries.

64
Q

Is IRD is subject to tax withholding?

A

Generally not

65
Q

Is IRD subject to federal tax withholding?

A

Generally not

66
Q

Are IRD subject to FICA taxes withholding?

A

Yes

67
Q

What is the early withdrawal penalty?

A

Withdrawal before age of 59 1/2, there is 10% penalty.

68
Q

If you are a dependant, and student could you contribute to traditional IRA and claim Saver’s Credit.

A

You can contribute to IRA but cannot claim saver’s credit because you are a student.

69
Q

Taxpayer received qualified disaster distribution from traditional IRA in 2022 and paid tax. In 2023 he paid back. What happens?

A

He can’t deduct it in 2023 but would take it to 2022.

70
Q

Taxpayer received qualified disaster distribution from traditional IRA in 2022 and paid tax. In 2023 he paid back. What happens?

A

He can’t deduct it in 2023 but would take it to 2022. Form 8915-F

71
Q

Are schools and colleges qualified charities?

A

Yes

72
Q

Are scientific and literary institutions qualified charity?

A

Yes

73
Q

Are organizations to prevent cruelty yo animals and human qualified charity?

A

Yes

74
Q

Are special Olympics and little league baseball qualified charity?

A

Yes, development of youth and amateur sports are.

75
Q

Who can make qualified charitable donation from RMD

A

70 1/2 can make upto 100,000 from RMD.

76
Q

What type of income is notary fees

A

Find out

77
Q

What type of tax you pay on Combat pay

A

Payroll tax

78
Q

What type of Alaska permanent fund dividends

A

Other income

79
Q

What type of income is jury duty pay

A

Other income

80
Q

What is the minimum working hours threshold for educator expenses

A

900 hours

81
Q

What is the minimum working hours threshold for educator expenses

A

900 hours

82
Q

If a taxpayer is covered by a high deductible plan, but also has a supplemental insurance policy for a specific disease, then he is not eligible to contribute to an HSA.
B. Individuals who are enrolled in Medicare can contribute to HSAs.

A

Not true

83
Q

Which income doesn’t count toward 4700

A

Scholarship, Tax-exmpt interest, SSI, non-raxable portion of social security, life insurance proceeds on death.

84
Q

Tell me about Simplified home expenses rate and max square feets

A

$5/square feet. Max 300 square feet. $1,500.

85
Q

Where and how you deduct DMV fee?

A

DMV fee is deducted on Scedule A as personal property tax itemized deduction. It is based on value of personal property.

86
Q

What are form 1095-B and 1095-C

A

Find

87
Q

For NIIT, what type of income is rent and Royalties

A

Investment income

88
Q

What is a limit of IRA extra 1,000 contributions?

A

If tax payer is over 50.

89
Q

What is the penalty of over contribution in IRA

A

6%

90
Q

When does distribution from IRA accounts be taxable

A

Distribution made before age of 59 1/2. The penalty will be 10%.

91
Q

Would distribution made due to IRS levy from an IRA account cause any penalty?

A

No

92
Q

Would distribution made from IRA account due to permanent disability would cause any penalty?

A

No

93
Q

Would distribution made from IRA account due medical expenses in excess of 7.5% limit cause any penalty

A

No

94
Q

Would exclusion of foreign income be included in calculation of social security benefits taxability.

A

No

95
Q

You withdrew 10,000 from IRA account to pay for tuition. What are tax consequences?

A

You’ll pay taxes but no 10% penalty.

96
Q

Could buy S corporation share in self directed IRA

A

No

97
Q

Which form do you report a non deductible traditional IRA amount?

A

8606

98
Q

At what age you are required to make distribution from traditional IRA

A

73 years

99
Q

Can a 21 years old student and dependant claimed by parents contribute to IRA

A

Yes

100
Q

What form do you use for AMT

A

8801

101
Q

What do you not include in AMT calculation

A

Self employment tax

102
Q

Is filing threshold for bankruptcy estate is 600 or 400

A

It’s 13850. Just like standard deduction

103
Q

If decedent estate received the account receivable for services decedent rendered when he is alive, where do you report this income

A

1041 in this case since estate received it. It IRD is reported on the return who receives it. It can be a person or estate.

EA Course (6 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions