Last quiz Flashcards
is child support deductible after 2019? how about before?
no after, yes before
are compensatory damages tax-free? what about punitive?
compensatory yes, punitive
When can you use your passive losses?
when the property or investment sells (MLP, real est, LTd ptnrships)
is the capacity for risk qualitative data or quantitative data?
quantitative data, because it’s CAPACITY
When do you give a client Form ADV?
earliest chance possible, and other material disclosures
what’s riskier, according to the practice test, TIPS or T-bonds?
T-bonds
how long is a t-bond?
10 years
Form 706
estate tax filing
Form 709
Gift tax filing
Are structured settlements tax-free?
yes
When are attorney fees deductible?
never (i bet you can deduct them in business returns, but it doesn’t say that)
Begin mode calculations on HP 12C
college tuition paid
retirement benefits received
family needs
end mode calculations on HP 12C
401k deferrals
profit-sharing contribs
bond interest
mortgage payments
Priority reminder: disability > umbrella in 0 reserve
go
Priority reminder: emergency fund > credit card payments
go on
Which kinds of actions need not be shared with your firm?
private actions. only public
How do you value a building on your financial statements?
estimated FMV
Taxable or not? punitive damages
taxable
Taxable or not? compensatory damages
tax-free
NII: income vs. inv interest
STCG, ordinary divs (electable), interest, royalties
How long carryforward on passive loss?
till investment sold.
no 3000 over and above gains
What’s PIA?
primary insurance amount
social security concept
surviving spouse benefits
see book
Optimal Donee: highly apprec property
lower tax bracket person
Optimal Gift Strategy: Loss property
sell it then gift cash proceeds
Optimal Gift Strat: out of state property
done it to avoid ancillary probate
Optimal Gift Strat: property subject to deprec
keep to full depreciation
Including the power
a financial amount. if already taken, if not, if lapsed - still confusing
Reminder: gift tax
paid by the year but is a credit against gift tax - check again this may not be right
Estate: what’s taken off AGE to make TE?
marital and charitable deductions
TE to TB
add taxable gifts to TB
TB to TT
subtract $11.50M gift exemption, remainder 40% tax
TT to NET
add gift taxes paid w/in 3 years to TT
Name all the Fiduciary Standard Rules you can
- Loyalty
- Care
- follow instrx
- Integrity
- Competence
- Diligence
- disclosure
- Objective
- professionalism
- compliance law
- Confidentiality
- Provide info
Self-employement tax factor
0.1413. total self employment income
what’s self-emp income?
directors fees, active partic in bizs, sched C
Reminder: calculating SET
expenses are already deducted. test may try to trip you up.
Non self-employment income classifications
- investment
2. salary
How is SET reported and paid?
added to income tax liability
then 1/2 (0.07065) subtracted on front of 1040
Reminder: max LTC writeoff at 61 is 4,000
check
Refundable amount of Child Tax Credit
$1,400
Refundable amount of Child Credit
don’t know
Refundable amount of Child Credit
don’t know
MACRS midquarter convention
40% into service during 4Q of tax year, use middle of 4Q.
MACRS half year convention
year of acquisition you use the half year if it is beyond (when?)
457 subject to creditors?
yes
Annuity taxation
LIFO after 8/13/82
