Individual Taxation Flashcards
What is standard deduction amount for 1) MFJ
2) Single
MFJ: 12,700
Single:6350
How much is the 2017 personal exemption?
4050
What is the 2017 Personal exemption phaseout?
261500-384400
313800-436300
Who can and cannot use cash basis accounting?
Can: Individuals
Cannot: 1) Corporations
2) Partnerships with a C-Corp Partner
3) Any business with inventory
What are some AGI deductions?
- MSA/HSA Contributions
- Teacher Expenses
- Moving expenses
- Deductible part of self employment tax
- Self employed SEP ( traditional IRA)
- Self employed health insurance premiums
- investment penalties for early withdrawal
- alimony paid
- ira deduction
- student loan interest ( cannot be someone else’s dependent)
- Qualified tuition and fees
What is the formula for gross income
Total income - exclusions
How do capital carryovers work?
back 3 years and forward 5 years
Describe the corporate charitable contribution limit
10% ( any amount over 10% may be carried over 5 years)
Describe the DRD %
Less than 20% ownership (70%)
20 80% ownership (80%)
80% or more (90%)
What is the tax rate for qualified service corporations
35% flat
What is the corporate AMT?
20% in excess of 40,000
If a corporation’s tentative minimum tax exceeds the regular tax, the excess amount is
payable in addition to the regular tax
What is the corporate AMT threshold amount and excess?
150,000 -> 15%
What is small corporations AMT amount?
Any small corporations ( receipts under 7.5 million) are exempt for a three year period average)
How do personal holding companies account for dividends?
They include 1) actual paid dividends 2) consent dividends