R1 Flashcards
How to calculate AGI
Gross Income - Adjustments = AGI
How to calculate Taxable Income
AGI - Deductions = Taxable Income
What are the six itemized deductions?
- Medical Expenses
- SALT
- Home Mortgage
- Interest Expense
- Charitable Contributions
- Casualty and Theft Loss
Individual Filing Due Date
April 15
How long can qualifying widower use those rates?
2 Years
In order to be taxable, a gain must be:
Recognized and Realized
Requires the accrual or receipt of cash, property, or services
Realized
Included in tax returns
Recognized
When are meals and lodging not included in taxable income?
When it is a condition of employment
Child support is:
Non Taxable
Alimony prior to 2019 is:
Income
Where is Farm Income Reported
Schedule F
Rental Income is reported on:
Schedule E
Gambling Winnings:
Included in Gross Income
Punitive Damages:
Fully taxable as ordinary income
Gifts and Inheritance
Non Taxable
Net Income from self employment is computed on:
Schedule C
Rental Residence is rented for less than 15 days
Personal Residence
LLC and Partnership is reported on:
Form 1065
S-Corp is reported on:
Form 1120S
Sole Proprietorship is reported on:
Form 1040 Schedule C
C-Corp is reported on:
Form 1120
Loss can only flow through the owner’s individual income tax return and deducted to the extent that the owner is at-risk
At-Risk Limitation
At-Risk Limitations excludes:
Owners share of certain debt
How much can you deduct of passive income
$25,000
What is the mom and pop rule
- Actively Participates
- Owns at least 10%
When is mom and pop eliminated
AGI is $150,000+
When is mom and pop reduced
AGI over $100,000
