Lists/Rules

Question 1

Begin mode calculator

Answer 1

College tuition paid
Retirement benefits received
Family needs

Question 2

End mode calculator

Answer 2

401(k) deferrals
Profit sharing contributions
Bond interest paid
Mortgage payments

Question 3

Participating Policy Dividend Option

Answer 3

Cash option
Premium reduction
Accumulated with interest
Purchase paid up additions (whole)
One year term insurance (5th dividend)

Question 4

Nonforfeiture options (insurance)

Answer 4

Cash value surrender
Reduced paid up insurance
Paid up term insurance

Question 5

Settlement options (insurance)

Answer 5

Lump sum cash
Interest only option
Installments for a fixed period
Installments for a fixed amount
Life income (annuity)

Question 6

Gross Income Inclusions

Answer 6

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

Question 7

Gross income exclusions

Answer 7

Gifts
Inheritance
Child support
Muni bond interest
Workers compensation payments
Compensatory damages

Question 8

Adjustments to gross income -> AGI

Answer 8

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

Question 9

Taxable fringe benefits

Answer 9

Health insurance premiums paid for self- employed, partners, or 2% owners of S Corporation are taxable income

Question 10

Itemized deductions (schedule A)

Answer 10

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)

Question 11

Self employment income wage base

Answer 11

Net schedule C income
Travel / entertain / other exp. Deducted

Board of directors fees
Part time earnings
General partnership income

Question 12

Property classes (depreciable assets)

Answer 12

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)

Question 13

Not AMT Deductible
(Add back)

Answer 13

Incentive stock options (ISOs)
Property. State, city income and sales tax (limit combined $10k)

Question 14

AMT Preference Items

Answer 14

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

Question 15

Transfer for value exceptions

Answer 15

Sales to insured
Corporation whew insured is a shareholder of officer

Question 16

MEC Dividends Taxable when

Answer 16

Used for:
Cash
Reduce premiums
Pay Policy Loan

Question 17

Cafeteria Plan Offering

Answer 17

Cash benefit
Group term life insurance
Accident and health benefit

Question 18

Unearned income examples

Answer 18

LP Operating income
S Corp Wages
Interest
Dividends

Question 19

Pass-Through Entities

Answer 19

S Corp
Sole Proprietor
GP
LP

Question 20

Qualified plans integrated with Social Security

Answer 20

Stick bonus
SEP
DP
TB

Question 21

Balance 457 plan transfers

Answer 21

Roll into ROTH
Left in 457 Plan
Full distribution with employer withholding income & FICA tax

Question 22

Pension plans that can name non-spouse bene with?

Answer 22

DB, CB, MP, TB

With spousal consent

Question 23

Non-community property

Answer 23

Gifts to one
Inheritance to one
Assets on income prior to marriage
Interest earned on separate solely owned assets

Question 24

5% minimum distribution required

Yes and no?

Charitable entities

Answer 24

5% minimum:
CRAT
CRUT
Foundation

No requirement:
CLAT
CLUT