Lists/Rules Flashcards
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College tuition paid
Retirement benefits received
Family needs
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401(k) deferrals
Profit sharing contributions
Bond interest paid
Mortgage payments
Participating Policy Dividend Option
Cash option
Premium reduction
Accumulated with interest
Purchase paid up additions (whole)
One year term insurance (5th dividend)
Nonforfeiture options (insurance)
Cash value surrender
Reduced paid up insurance
Paid up term insurance
Settlement options (insurance)
Lump sum cash
Interest only option
Installments for a fixed period
Installments for a fixed amount
Life income (annuity)
Gross Income Inclusions
Schedules:
B) ordinary income / taxable interest / wages / salary/ tips / IRA Dist
C) business income / loss, pensions, annuities
D) Capital gains / losses, alimony before 2019
E) real estate / punitive damages, unemployment income, taxable social security
Gross income exclusions
Gifts
Inheritance
Child support
Muni bond interest
Workers compensation payments
Compensatory damages
Adjustments to gross income -> AGI
IRA Contributions
Student loan interest
HSA contributions
Keogh or SEP
Self employment tax (0.07065)
Alimony after 2018
100% self employment health insurance
Military moving expense
Early withdrawal penalties
$4k educational expenses
Taxable fringe benefits
Health insurance premiums paid for self- employed, partners, or 2% owners of S Corporation are taxable income
Itemized deductions (schedule A)
Medical dental qualified LTC (>7.5%)
State and local sales tax
Personal property tax
Real estate tax
Mortgage ins. Qual. Residence (<$100k AGI)
Home mortgage interest
Charitable gifts
Investment interest (margin)
Casualty loss (declared area)
Self employment income wage base
Net schedule C income
Travel / entertain / other exp. Deducted
Board of directors fees
Part time earnings
General partnership income
Property classes (depreciable assets)
5-year= computers, autos, light duty trucks (1245 property)
7-year= office furniture and fixtures (1245 property)
27.5-year = residential rental property (1259 property)
39-year = non residential real property (1250 property)
Not AMT Deductible
(Add back)
Incentive stock options (ISOs)
Property. State, city income and sales tax (limit combined $10k)
AMT Preference Items
IPOD
Private-activity Muni bond
Oil and gas % depletion/ excess Intangible drilling costs, % depletion (excess depletion over adj. basis)
Depreciation (MACRS, ARCS) NOT straight line
Transfer for value exceptions
Sales to insured
Corporation whew insured is a shareholder of officer
MEC Dividends Taxable when
Used for:
Cash
Reduce premiums
Pay Policy Loan
Cafeteria Plan Offering
Cash benefit
Group term life insurance
Accident and health benefit
Unearned income examples
LP Operating income
S Corp Wages
Interest
Dividends
Pass-Through Entities
S Corp
Sole Proprietor
GP
LP
Qualified plans integrated with Social Security
Stick bonus
SEP
DP
TB
Balance 457 plan transfers
Roll into ROTH
Left in 457 Plan
Full distribution with employer withholding income & FICA tax
Pension plans that can name non-spouse bene with?
DB, CB, MP, TB
With spousal consent
Non-community property
Gifts to one
Inheritance to one
Assets on income prior to marriage
Interest earned on separate solely owned assets
5% minimum distribution required
Yes and no?
Charitable entities
5% minimum:
CRAT
CRUT
Foundation
No requirement:
CLAT
CLUT
