NINJA Individual Taxation #1

Question 1

What is the standard deduction for:

MFJ?
Single?

Answer 1

MFJ = $12,600

Single = $6,300

Question 2

Personal Exemption?

Answer 2

$4,000

Question 3

Personal Exemption Phaseout for:

MFJ?
Single?

Answer 3

MFJ = $309,900

SINGLE = $258,250

Question 4

When is Cash Basis Accy allowed?

Answer 4

For individual taxpayers owning a business

Question 5

When is Cash Basis Accy NOT allowed?

Answer 5

NOT allowed for:

1. CORPS
2. PARTNERSHIPS WITH A C-CORP PARTNER
3. INVENTORY

Question 6

What are the deductions to arrive at AGI?

Answer 6

I- Interest on Studen Loans $2,500
E-Employment Tax - 50%, Med Premiums - 100%
M-Moving Expenses
B-Business Expenses (Sch C)
R-Rent/Royalty & Flow-through entities (Sch E)
A-Alimony (CANNOT)
C-Contributions to Retirement (KEOGH/IRA)
E-Early withdrawal penalty
D-Jury DUTY
E-Education $4,000
H-Health savings accounts (HSA)
F-Farm Income (Sch F)

Question 7

Can I deduct another taxpayer’s dependent’s student loan interest?

Answer 7

NO!

Question 8

What are section 179 expenses?

Answer 8

new/used equipment placed into service between 1/1/15-12/31/15

Question 9

What is the max deduction for Section 179?

Answer 9

$25,000

Question 10

If Congress retros the Sect 179 deduction, does this impact the CPA exam?

Answer 10

NO!

Question 11

What is the max total equipment purchases for 2015?

Answer 11

$200K

Ex. $25k deduction is phased-out dollar for dollar for the amount of equipment purchases that exceed $200K.

Question 12

If a company buys $215k in equipment, then the $25k deduction is reduced as follows:

Answer 12

$215k - $200k = $15k

Max 179 deduction: $25k - $15k = $10k