Income Tax

Question 1

Bargain Sale

Answer 1

Sale prive / FMV = discount %

discount % x basis = bargain $

FMV - bargain $ = bargain sale $

Question 2

Gross Profit

Answer 2

Revenue - COGS

Question 3

Alimony Recapture

Answer 3

Year 1 + Year 2 - 37,5000

Question 4

AGI Phase out for real estate income

Answer 4

Phaseout: starts at 100k

150k = 0

25k deduction

Question 5

Schedule H

Answer 5

Household workers

Question 6

Rent of Principal Residence

Renting Vacation Home

Answer 6

-fewer than 15 days are free

• cannot exceed greater of 14 days or 0% of rental use

Question 7

W-2 Tax Breakdown

Answer 7

SS. Medicare
Employee | 6.2. |. 1.45. = 7.65
Employer | 6.2 |. 1.45. = 7.65
Total. | 12.4. |. 2.9 = 15.3

Question 8

1031 Exchanges

Answer 8

Realized Gain = (FMV + Boot) - Basis

Recognized Gain = Boot received

New Basis = Old Basis + Boot Recived

Question 9

Holding Period Taxes

Answer 9

STG + 1245 = Ordinary
LTCG = Rates on sheet
Collectables. = 28%

Question 10

Holding Period Taxes

Answer 10

STG + 1245 = Ordinary
LTCG = Rates on sheet
Collectables. = 28%

Question 11

1244 Stock

Answer 11

Qualified Small Business Stock
- c or s corp Market cap less than 1m

Ordinary losses up to 100k MFJ 50k single
+ 3 k capital loss

Question 12

DNI

Answer 12

Distributable Net Income

Limits the amount Trust/Estates must report as gross income

Question 13

Student Loan Interest Deduction

Answer 13

Schedule 1

Limited to $2500

Question 14

charity deduction limit

Answer 14

60% of AGI