ITX - 43B Flashcards
Taxed as/rate: Life insurance dividends
Not taxable
Taxed as/rate: Qualified dividends
10% & 15% = 0%
25%, 28%, 32%, 35% = 15%
39.6% = 20%
Taxed as/rate: Money market mutual fund dividends
Ordinary income
Taxed as/rate: S-corp dividends
Ordinary income
Taxed as/rate: REIT dividends
Ordinary income
Taxed as/rate: MF distributions of STCGs and interest
Ordinary income
Taxed as/rate: Preferred stock dividends (most)
Ordinary income
Taxed as/rate: Capital gains - LT (other than collectibles and unrecaptured real estate depreciation)
10% & 15% = 0%
25%, 28%, 32%, 35% = 15%
39.6% = 20%
Taxed as/rate: Capital gains - ST
Ordinary income
Taxed as/rate: Installment sale (seller)
Each payment is part capital gain, part return of basis, and part interest (ordinary income)
Taxed as/rate: Private annuities
Each payment is part capital gain, part return of basis, and part interest (ordinary income)
Taxed as/rate: Commercial annuities - withdrawals
Ordinary income on earnings, plus 10% penalty if under age 59 1/2
Taxed as/rate: Commercial annuities - annuitized payments
Part return of basis and part ordinary income
Taxed as/rate: Life insurance withdrawals (non-MEC)
Ordinary income once basis has been exceeded
Taxed as/rate: Life insurance loans (non-MEC)
Not taxable
Taxed as/rate: Life insurance withdrawals & loans (MEC)
Ordinary income on earnings, plus 10% penalty if under age 59 1/2
Taxed as/rate: DI insurance benefits (group)
Ordinary income if premiums were pre-tax
Taxed as/rate: US government bond interest
Ordinary income
Taxed as/rate: TIPS
Ordinary income on both the interest and the increase in principal each year
Taxed as/rate: GNMA, FNMA, FHLMC interest
Ordinary income
Taxed as/rate: Municipal bond interest
Federal tax exempt if public purpose; state and local tax exempt if resident
Taxed as/rate: Zero coupon bond interest
Ordinary income on imputed interest
Taxed as/rate: Passive losses (LP & rental)
Deduction limited to passive income
Taxed as/rate: Alimony
Ordinary income to the receiver
Taxed as/rate: Excess alimony
Recaptured as ordinary income in 3rd post-separation year
Taxed as/rate: Social Security Income
Up to 85% of SS income may be taxed as ordinary income if combined (provisional) income exceeds the threshold
Taxed as/rate: Restricted stock
Ordinary (W-2) income at maturity/exercise (no longer substantial risk of forfeiture on restricted stock
Taxed as/rate: Phantom stock
Ordinary (W-2) income at maturity/exercise (no longer substantial risk of forfeiture on restricted stock
Taxed as/rate: SARs
Ordinary (W-2) income at maturity/exercise (no longer substantial risk of forfeiture on restricted stock
Taxed as/rate: Life Insurance Death Benefit
Not taxable unless transferred for value
Taxed as/rate: ISO - At grant
no tax
Taxed as/rate: ISO - At exercise
no tax
Taxed as/rate: ISO - At sale if qualifying disposition
LTCG
Taxed as/rate: ISO - At sale if disqualifying disposition
ordinary income on bargain element
rest is LT or ST capital gain based on holding period from exercise
Taxed as/rate: NQSO - At grant
no tax
Taxed as/rate: NQSO - At exercise
ordinary (W-2) income on bargain element (basis becomes full FMV on date of exercise)
Taxed as/rate: NQSO - At sale
LT or ST capital gain based on holding period from exercise
