Questions Flashcards
What is the minimum amount of expected taxes owed when individuals make estimated tax payments?
$1,000
What is the minimum period of time that mutual funds need to be held so that the taxable capital gain distributions are considered long-term?
Mutual fund distributions are always considered long-term.
Which IRA does not include nondeductible contributions and does not have the need to calculate a basis?
Roth IRA
When it comes to Hobby Income, if an individual is not in the business to make a profit, then how would the income related to a sale be treated?
The income would be treated as a capital gain.
What is the basis threshold for a couple filing jointly?
$32,000
If an unmarried individual dies at the age of 45 and had a traditional IRA with his nephew as the beneficiary. What option is not a possible distribution?
He could not rollover the inheritance into an existing IRA. Only a spouse would be able to rollover an IRA as their own.
How is the basis of an asset determined?
By the cost it takes to acquire property unless it is inherited or gifted.
At what point does the holding period begin for an Employee Stock Purchase Plan (ESPP)?
The day after the option is exercised
What is used to determine the basis of property inherited from a deceased individual?
The fair market value on the date of death.
If an individual taxpayer has unreimbursed medical expenses, what is the maximum allowable deduction for the expenses?
A taxpayer can only deduct amount that exceeds 7.5% of adjusted gross income.
step 1: AGI X 7.5% = X
step 2: Amt of expenses - X = max allowable deduction
When does a donation require a documented receipt?
Only donations over $250
How much of the cost for points is eligible for deduction in the year of a refinance?
The term of the new loan divided by the cost of the points required to obtain desired rate.
What is the total allowable real estate tax deduction of a primary residence and foreign real estate?
Foreign real estate tax is no longer allowable.
Up to $10,000 real estate tax of a primary residence is allowed to be deducted.
All of the following are classified as qualifying charitable organizations except:
-nonprofits for the purpose of religion, education, federal government entities, hospitals, amateur sports competition organizations, or gifts to political groups
Gifts to political groups
If the President declares a federal disaster, how do you determine the personal casualty loss deduction?
The lessor of the decrease of FMV or adjusted basis at time of event. THEN further reduced by $100 and 10% of the loss of AGI.
