Income Flashcards
1
Q
How is amortization of bond premium treated for tax purposes
A
reduces basis of bond and computed as constant YTM, also offsets interest income on bond
2
Q
are federal and state tax refunds included in taxable income
A
only to extent it did not reduce taxable income in prior year
3
Q
PI
A
AGI +Tax-exempt interest+50%of SSB
4
Q
Are employers reimbursements under a non-accountable plan included in employees income
A
yes and deductions are 2%
5
Q
how much of group term life insurance is excludable in employees income
A
first 50,000, if 200,000 in benefits, 150,000*IRS established uniform cost is in income
