Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Roger's Reg > Individual Taxation > Flashcards

Individual Taxation Flashcards

1
Q

Taxable today

A

No benefit tomorrow

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Deductible today

A

Taxable tomorrow

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Traditional ira

A

Contributions are deductible

Unless ind actively participates in another plan- like at work

Agi exceeds threshold

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Roth IRA

A

Not deductible but grows tax free

Withdrawals before 59.5 results in penalties 10%

Apart from state and fed tax

Unless medical, educational, first time home …

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Educations saving

A

Put up to 2k?

Whatever it earns is tax free for education . Have to use it before age 30 or can be passed to another member.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

529 plan

A

For children, the accumulated won’t be taxed as long as used for qualified expenses

Grows tax free

You can front load the plan. For 5 years and wouldn’t be considered a gift. Can’t give them gift for 5 years

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Simple plan

A

Match plan for employees

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Early withdrawal penalty

A

Assume for other investment .

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Jury duty fee if remitted to employer

A

Deduct when arriving at AGI

ON EXAM

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Average out income

A

Farmers

Fertilizer seeds plants on schedule F you could see.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Adjustments

For AGI

A

IEMBRACED EDUCATION HEALTH AND FARMERS

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

From AGI

Itemized deductions

A

COMMIT

Charity - buying cookies?!-qualified org

Other misc

Misc 2%

Medical- 10%

Interest

Taxes

Theft / casualty loss 10% 100$

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Alimony

A

CANNOT

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Charitable contributions

A

Carried over 5 years

50% of AGI deductible

Corps are limited to 10% of adjusted taxable income ATI -5 year carry forward

Prop contributions: subject to 2 rules
Ordinary income rule: sterm deduction lower of tax basis or fmv on date of contribution .
Long term cap gain: held higher than 1 year, resulted in long term gain, claim higher of v - limited to 30% of agi

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Gambling losses

A

If itemize

No more than winnings

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Other misc

A

Estate taxes on income in respect of decedent (Ird)
Gambling losses
Prof gamblers deduct non wagering business expenses on sch c

NO THRESHOLD

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Misc 2%

A

A little of 100%

Excess of 2% of agi is deductible

BIT

EMPLOYEE BUSINESS EXPENSES
INVESTMENT COSTS : not fees, no advisory fees… if related to taxable income yes deductible
TAX AND attorney fees

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Uniform

A

If could be worn elsewhere, not deductible like a tuxedo for a waiter

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Medical

A

10% of excess of AGI

Cosmetic for medical reason deductible

Therapist deductible

Health insurance premium deductible

Drugs must be prescription

Minus insurance reimbursement - asked

Pool and elevator could be if for medical

Not life insurance

Not medical out of ssi

Expenses for others: cdirs (dependent) ..citizen, related live with you provide over 50% of support

If income or joint return test you can still deduct

Diseased spouse or dependent deduc in year , doesn’t matter if before or after death

20
Q

Interest

A

Investment int- margin interest can’t be more than income on B

Test: mortgage loan interest—
Acquisition: loan to acquire and purchase house , interest of loan up to 1M
Home Equity: interest of loan up to 100thousand , borrowed and used on something else with it . The extra amount above 100k , interest on that amount wouldn’t be deductible

21
Q

Taxes

A

State taxes, state and local, registration: not the fee

Fee fines federal FICA , forget it.

State sales tax was extended

22
Q

Theft and casualty

A

Not gradual like termites and erosion. Has to be pretty sudden like natural

Unreimbursed that exceed 10% of AGI, -100$ per event

Measured by drop in fmv but limited to tax basis of asset . Costs incurred to repair, increase tax basis of property but doesn’t affect drop of fmv-loss

23
Q

Itemized deduction phaseout

A

Total of itemized is reduced by smaller of:

3% of the amount that agi goes over limit

80% of itemized that are affected by limit - not GIMC 
Gambling losses 
Investment interest 
Medical expenses 
Casualty losses
24
Q

Itemized deductions with no percentage limit

A

Other misc

Interest

Taxes

25
Q

Qualifying dependent requirements

A

C I R S J

Citizen or resident of mex or Canada .

Income, can’t make more than personal exemption

Relationship: all immediate and uncles and aunts but not cousins- cousins can be dependents if they lived with you the entire year

Support has to be over 50%. If more than one but no one provides more than 50% then multiple support agreement , can be given to someone who provides at least 10%

Joint tax return not filed. Unless only to get a refund

26
Q

Child dependent requirements

A

J A R S

no joint tax return

Age or full time student. Any age if disabled . Otherwise, under 19 or full time student under 24

Residency /Related to you - live with you at least half the year

Support : must not have provided more than half of their own support. Scholarships don’t count. You don’t have to support 50%

Phase out exists

27
Q

Ctc

A

Child tax credit- under age 17

Refundable

28
Q

Child independent car

A

Children under 13

29
Q

Adoption

A

Credit- carry forward 5 years

Phase outs

30
Q

Education

A

Aotc: hope, first 4 years , 2500$

40% refundable

Lifetime credit : other years 24%

Savers credit : under threshold, you can put in ira and get credit

31
Q

Foreign tax credit

A

Not claimed as itemized deduction

32
Q

Elderly credits

A

Non taxable ssi
65+
Disabled
Less than 7500$ of income

33
Q

Eic

A

Refundable

25? Age

34
Q

SE tax

A

15.3 tax

If you make over 400$

High income above 250mfj+

35
Q

Underpayment penalty

A

Estimated payments 4, 6, 9, 1 15th of each

If you pay 90% of this year or 100% of last year, you’re no penalty

.05 penalty per month ***

36
Q

Understatement of penalty- inaccurate

A

20% penalty

37
Q

AMT

A

Looks at itemized deductions and disallows or changes limits. If not paying enough then diff is amt

Considers committ

Penalty tax

Taxable income
+- adjustments =adj before exemptions
-exemption = amt income

Charity , other misc, theft and casualty you keep. Int on acquisition . Asked before

Others are disallowed so tax is higher, if total greater than current tax then that is taxed

Lost misc 2%, interest on equity , taxes

Non refundable credits can offset: like cdc hope

38
Q

Adj and preferences for AMT

A 
SIMPLE PIE 
Losing adj:
Standard deduction 
Interest in home equity 
Medical expenses 
Personal and dependency exemption 
Taxes will all be added back 
Employee busi expenses 2% BIT

Preferences:
Private activity bond: added back, was previously included

ISO

EXCESS DEPRECIATION: when double declining is used, they use 150 instead of 200.
Reduces expense so income goes up

Makes income to go up but can lead to decrease also

39
Q

Amt formula?

A

amti before exemption minus 150 Amount minus 25% of

Find rates too 26%?…

40
Q

Charity contributions carried

A

Give me 5… years

41
Q

NOL

A

Upside down looks like 2 and 20 . Go back 2 and forward 20

42
Q

Net Capital loss

A

Offsets

CAP GAINS
cap 3 letters for go back 3 yrs

Gains has 5, for forward 5 years

Individuals 3k , no go back , forward indefinitely.

43
Q

Investment interest

A

No go back

If interest expense greater than int income then net and carry excess forward indefinitely

44
Q

Net passive loss

A

Not back

Forward indefinitely

25k a year loss

45
Q

Net gambling loss

A

No back or forward

Just lose it

46
Q

Rental royalty **

A

Roof and cops

Roger's Reg (14 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions