Indiv. Tax, Adj./Deductions/Credits Flashcards
Appreciated Property for Donation Purposes - ST and LT Cap Gain
ST - it is worth basis
LT - FMV / “appreciated value”
Can only donate gifts worth up to 30% of AGI …50% for cash!
Non-Accountable Expenses Plan (thru employer) - how to report?
ALL $ given for business expenses must be counted in Gross Income under non-accountable plans.
(In fact, the amount will be listed in the W2 for the year).
Q: What are deductible from Personal (vs. rental) properties for the year?
A: Mortgage expenses and property taxes. (Itemized!)
for rental, you also can get utilities and insurances, and more.
Casualty Losses - how to calculate
1) Begin with dif. between (Lower of FMV and Basis) and Insurance $ Amount
2) Subtract $100 per casualty event (EG 1 event = $100)
3) Subtract 10% of AGI (based on wages)
4) You have your amnt. to deduct in current year under itemized expenses, Casualty Loss!
5) Please note - net casualty Gains with Losses for the year post-calculation.
EG:
150,000 (basis, lower of 2) - 130,000 Insurance Money =20,000 - 100- (10%*60,000) = 20,000-100-600 = 13,900
What is necessary to qualify charitable contributions as itemized deductions?
A: Qualified Org.!
What moving expenses are deductible?
A: Lodging and travel; cost of moving house/personal affects. PERIOD.
NO FOR: pre-move house-hunting trips, lease-breaking expenses, lodging WHILE there, meals on the way.
NOTE.. these are not ITEMIZED deductions.. they simply come out to arrive at AGI
Cash Basis TPs - what are (and aren’t) you entitled to claim for taxes in the current year?
1- State and local income taxes to be paid that year can be withheld as tax claims.
2- Federal taxes - NOT withheld
3- State and local to be paid in following year - NOT withheld
What is the max. deductions can you take for IRA contributions?
A: $5,000 per person, as per 2015
PHASE-OUTS: relevant if indiv. or spouse is an active participant in retirement plan.
RULES:
AGI between $98K - $118K
MFJ (ur spouse is): $183K - $193K
Deduction by individual tax payer for interest expense indebtedness?
A: Limited to taxpayer’s NET INVESTMENT INCOME Per the year.
What do you call interest paid on a Debt (EG loan) secured by a home mortgage?
A: Deductible Qualified Residence Insurance
DQRI
Rule on deductions of mortgage interest?
A: Mortgages up to $1Mil qualify for FULL Deductions of mortgage interest, including loans taken to buy, build, or substantially improve home.
Qualified Medical Expenses? (aka deductible medical expenses)
medicine and drugs, doctors, medical and accident insurances, req. surgery, transportation to medical facility (actual cost or 23 c/mile), Physical disability cost
How long can charitable contributions above the AGI limit be carried forward?
5 Years
What is Ad Valorem tax, and does it get itemized for tax purposes?
An ad valorem tax (Latin for “according to value”) is a tax whose amount is based on the value of a transaction or of property. It is typically imposed at the time of a transaction, as in the case of a sales tax or value-added tax (VAT).
Yes.
“Education loan interest” or “Student loan interest” Above-the-line AGI : Rules
a) Limited to amount paid OR $2,500, whichever is lower
b) All qualified education loan int. is allowed as part of adjustment
PHASE OUT:
single: $65K-$80K
MFJ: $130K-160K
