learn tax. you're an accountant. Flashcards
at what amount does QBI begin to phase out for
- single
- MFJ
single: $170,050 to $220,050
MFJ: $340,110 to $440,110
how much social security benefits received is taxable?
85%
what is the deductible limit for a SEP?
25% of Sch C profit
what type of income is considered when calculating for QBI?
rental income and earned income
how is DRD applied when a company has a net operating loss yet still distributes dividends?
apply DRD to dividends directly
how do you determine the amount of DRD?
lesser of:
taxable income before DRD
dividends received
what is the accumulated/retained earnings tax?
when a C corp has more than $250,000 in retained earnings and has not distributed it. they would be taxed 20% of retained earnings
what is the personal holding tax?
for small C corps who received at least 60% of income from interest, dividends, rents and royalties and do not distribute it
what type of costs are non-deductible organizational expenditures?
offering materials
what can a company do instead of taking a foreign tax credit?
deduct
what 4 types of taxes paid can be deducted on a federal income tax return?
state and local taxes
property taxes
foreign taxes
sales taxes
what are the 2 types of capital assets?
for each type, how are gain (loss) applied?
stocks and bonds - report gains and losses
personal property - only report gains
when is a related party buyer able to recognize a gain or loss?
recognize gain with asset is sold to an unrelated party.
offset gain with suspended loss from related party seller first.
what is the holding period for a wash sale?
date that the original stock was purchased
what is the holding period for a related party transaction?
based on when the taxpayer acquired the property
