Income Tax Flashcards
Tax reference books
Research institute of America RIA
Commerce clearing house cch
Can’t be cited in court
Tax dates
April 15
June 15
Sept 15
Jan 15
Frivolous return
5k
Failure to file
5% per month, up to 25% of tax due
Failure to file
5%
Estimated tax
Pays 90% of current year liability or 100% of last years OR 110% of previous year if AGI is 150k
65+ SD
Blind SD
$1150 EACH MFJ
$1950 single
Estate & SALT tax deduction max
10,000
Calculation of deductible loss
Lesser of basis or FMV
minus insurance
Minus 100 floor
Minus 10% AGI
Meal expenses
50% deductible
Self employment tax
.1413
FICA
6.2 SS 1.45 Medicare pt a
168,600 cap on SS
Both employee and employer pay
.09 additional Medicare for rich
Child & dependent credit
Until 13
20% of expenses limited to 3k expenses for 1 & 6k expenses for all
Child tax credit
Under 17
2k for each kid
400k magi MFJ 200k single
1700 refundable
Family credit
$500 for dependents. Cant make more than4,500
Elderly tax credit
65+ & permanently & totally disabled
Foreign twx
Each year choose between a deduction & a credit
Earned income
Low income refundable
Section 1244
Small biz
First mil of S or C
Close , can use 100k as ordinary losses that year + 3k capital losses
QBI
Qualified business income
Pass through from sole props, s corps, llcs, partner ships
For service related biz
Deduct 20%
Section 197
Intangibles/goodwill
Straight line 15yr
QBI deduction limits
191950 single 383900 MFJ
Below that can claim 20% deduction on biz pass through can be personal service
241950 or 483900 MFJ above can’t do 20% if personal service
Corp tax rate
Flat 21%
