Individual Taxation Flashcards
When is the accrual method of tax reporting is mandatory in 2019 for a sole proprietor?
Beginning in 2018, the accrual method is never required for a taxpayer or amounts receivable unless the average gross receipts for the preceding three tax yeas exceeds $25 million.
Are clay’s direct moving expense deductible in his 2019 income tax return?
Beginning in 2018, moving expenses are not deductible, unless the taxpayer is a member of the military on active duty pursuant to a military order.
What is the allowable business interest expense deduction?
Business interest expense is limited to 30% of the business’s adjusted taxable income.
What must be present for payment to qualify as deductible alimony?
- Payments must be in cash
- Payments must end no later than the receipts death
Is self-employment tax a deduction for AGI or from AGI (itemized deduction)?
For AGI
What taxes are not deductible for individuals?
- Federal income taxes
- Federal, state, and local gift taxes
- SS and other federal employment taxes
- Foreign real property taxes
Are entertainment expenses deductible?
No
Are organization dues deductible?
anything for pleasure is not deductible. Dues for public service clubs is deductible.
When are educational expenses deductible?
When they maintain or improve existing skills required for current job and meet requirements of employer or imposed by law.
Can NOL be carried forward and back?
NOL can no longer be carried back. Only forward indefinitely.
Whats is the NOL limit?
NOLs are limited to 80% of taxable income.
How much is the qualifying child tax credit and what are the requirements?
$2,000 for each qualifying child under the age of 17.
How much is the family credit for qualifying relative?
$500
