Lists

Question 1

What is the order for distribution of a bankruptcy estate.

Answer 1

1. Secured creditors
2. Child support
3. Bankruptcy administration expenses
4. Gap creditors
5. Employee wages claims up to $12,475
6. Employee pension claims up to $12,475
7. Farms/Fish
8. Consumer deposits
9. Taxes
10. DUI damages
11. General creditors

Question 2

What are the above the line deductions for AGI?

Answer 2

1. Student loan interest
2. Trade or business
3. Alimony
4. Rent and royalty expenses
5. Losses
6. Moving expenses
7. IRA and Keogh contributions
8. 50% of self-employment tax
9. 100% of medical insurance for self-employed

Question 3

What deductions are subject to the 2% floor?

Answer 3

1. Home office expenses of employee
2. Employee expenses not reimbursed
3. Investment expenses
4. Tax return preparation expenses
5. Hobby expenses

Question 4

List the six tests for a child to qualify for the dependency exemption.

Answer 4

1. Marial test
2. Age requirement
3. Not self-supporting
4. Residence test
5. Residency test
6. Relationship test