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REG- Accounting > Individual Taxation > Flashcards

Individual Taxation Flashcards

1
Q

When is filing status determined?

A

At the end of the year?

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2
Q

Does income matter for qualifying child test? If so, what is it?

A

No, but they must be under 18 OR be a full-time college student 19-23

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3
Q

Does income matter for qualifying relative test? If so, what is it?

A

Yes, cannot earn over $3,000 in taxable income

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4
Q

Alimony received (before/after) December 31, 2018 is TAXABLE as GROSS INCOME

A 
Before = Taxable BUT CAN BE DEDUCTED
After = Not Taxable
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5
Q

In order for an award to not be taxable to the individual, what are the two requirements?

A
  1. Individual was given award without request

2. Donated to governmental or charitable unit

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6
Q

What is the maximum amount of social security benefits that can be included in gross income?

A

85%

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7
Q

State muni bonds (are/aren’t) taxable

A

are NOT

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8
Q

Worker’s compensation (is/isn’t) taxable

A

is NOT

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9
Q

Child support (is/isn’t) taxable

A

is NOT

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10
Q

Which is satisfied first when allocated? Child support or alimony?

A

Child support is first

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11
Q

Employer contributions to a qualified retirement plan are taxable upon (distribution/contribution), and earnings are taxable upon (distribution/receipt).

A

Distribution for both

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12
Q

The first _______ of group-term life insurance is nontaxable as a fringe benefit.

A

$50K

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13
Q

Losses from rental of personal property are disallowed if it is rented for ___ days or (more/less).

A

14 or less

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14
Q

Is R&D included in uniform capitalization rules?

A

No, but anything related to DL, DM, and FOH is

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15
Q

Prepaid interest must be allocated over the life of a loan for (cash/accrual) basis taxpayers

A

BOTH!

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16
Q

An employer paying for their own health insurance (is/isn’t) included on Sch C

A

is NOT

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17
Q

QBI deduction (is/isn’t) allowed for a SSTB over the income threshold.

A

is NOT

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18
Q

Phase-in amount for QBI

A

164,900 single x 2 MFJ

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19
Q

Passive losses in the excess of at-risk amounts for an activity are carried forward _______ and are deductible _________

A

Indefinitely / Against that activity

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20
Q

Passive losses (including suspended ones) can be allocated against other sources of income if….

A

A partner is disposing of their interest in a partnership

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21
Q

What is the Mom & Pop rule? And what is the phaseout?

A

If a married couple actively participates in real estate, then they can deduct up to 25k so long as their AGI does not exceed $100k (phaseout between 100-150k - 50 cents on the dollar)

22
Q

Portfolio income (is/isn’t) passive income

A

is NOT

23
Q

A limited partner in a partnership provides what type of passive income?

A

At-Risk

24
Q

Individual taxpayers can deduct up to ______ in net capital losses

A

$3k

25
Q

Passive recourse liabilities increase which basis?

A

Tax and At-Risk

26
Q

Passive nonrecourse liabilities increase which basis?

A

Tax basis but NOT At-Risk UNLESS it is secured by real property

27
Q

Parthership loss hurdles (3):

A
  1. Tax Basis
  2. At-Risk Basis
  3. PAL (up to Passive Gains)
28
Q

Students can deduct ______ per year of student loan interest payments

A

$2500

29
Q

Self-employed health insurance (is/isn’t) deductible

A

it IS deductible!

30
Q

Max deductible for a SEP IRA

A

20% of income after deducting 1/2 of SE taxes

31
Q

Charitable cash contributions for individuals subject to the 60% limit can be carried _______

A

Forward 5 years

32
Q

Qualified residence interest deduction is only deductable…

A

…when buying, building, or substantially improving taxpayer’s home that secures the loan

33
Q

Medical insurance premiums (are/aren’t) deductible

A

ARE

34
Q

Additional standard deduction amt

A

1350

35
Q

Medical expense deduction AGI floor:

A

7.5% of AGI is the FLOOR

36
Q

If property is donated and it’s short-term, its max is ___% and measured at _______

A

50%, lesser of adjusted basis or FMV at time of contribution

37
Q

If property is donated and it’s long-term, its max is ___% and measured at _______

A

30%, FMV at time of contribution

38
Q

The Net Investment Income tax is ___% on the (greater/lesser) of Net Investment Income or excess over AGI

A

3.8% / Lesser

39
Q

Child and dependant care credit is ___ of eligible expenses, child must be under the age of ___

A

Fully refundable up to 8k (1 dependent), 16k max / 13 years - 50% then phaseout to 20% then to 0%

40
Q

The max child tax credit can be claimed for $_____ each if AGI is beneath a certain threshold

A

$2,000

41
Q

Safe harbor for estimated payments applies to AGI in the prior year being over ____

A

$150k

42
Q

Unemployment compensation in 2021 can be deducted by ______ for low income

A

$10,200

43
Q

Retirement savings contributions credit is temporarily refundable for low-moderate income taxpayers, %’s are ____ and max is $____

A

50%, 20%, 10% - $2000

44
Q

Incentive stock options must be held at least ____ year(s) after the grant date, and at least ____ year(s) after exercise date

A

2 / 1

45
Q

Employee stock purchase plans cannot be exercised more than ____ months after the grant date.

A

27

46
Q

The option price may not be less than ____% of the lesser of the _____ of the stock when granted or excersized

A

85%

47
Q

A nonqualified stock option is considered _______ income. If the value is readily ascertainable, it is taxed when (granted/exercised). If there is a cost, it is calculated by _____________.

A

Ordinary Income
Taxed when Granted
Value minus Cost

48
Q

A nonqualified stock option is considered _______ income. If the value is not readily ascertainable, it is taxed when (granted/exercised).

A

Ordinary Income

Taxed when Exercised

49
Q

ISO’s (are/aren’t) taxable when granted and (are/aren’t) taxable when exercised. They are taxed as a _______ gain or loss when sold.

A

Aren’t / Aren’t / Capital

50
Q

Qualified stock options (are/aren’t) deductible for the employer

A

are NOT

51
Q

ESPP’s (are/aren’t) taxable when granted and (are/aren’t) taxable when exercised. They are taxed as a _______ gain or loss when sold UNLESS they are sold at a bargain, in which case it’s considered _________

A

Aren’t / Aren’t / Capital / Ordinary Income

REG- Accounting (7 decks)

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