Reg 1 Module 2 Flashcards
Gross Income Part 1
What kind of income is Employer-Provided Medical Insurance
Tax Free Fringe Benefit
What kind of income are gifts and inheritance
Tax Free to Recipient
Is a grant income for participation is a university-sponsored research project for the benefit of a university taxable?
Yes, there is no exception for this
Interest on U.S Treasury Certificates and Interest in PY federal income tax is:
Taxable. Interest only for Federal.
Unemployment Compensation Vs. Workers Compensation
Unemployment = Taxable
Workers Comp = Non Taxable
Whether on the cash or accrual method of accounting taxpayers who sell stock or securities on an established securities market must recognize gain and losses on the
Trade Date
Early ira distribution consequences
Percentage of Marginal Tax X Amount W/drawn
10% penalty of amount w./drawn
Premature IRA Distributions are allowable when is it used for HIM DEAD
Home Buyer (1st time) 10,000 max if used toward first home
Insurance (Medical)
Medical Expenses in excess of 10% of AGI
Disability
Education
and
Death
Funds held in a traditionalIRA, previously deducted IRA to get to taxable income then
It becomes taxable when it is distributed
When an taxpayers take the Standard deduction in the previous year, they cannot take ___ as income
State tax refunds, can only include when you take Itemized deduction
The first ____ of group term life insurance is nontaxable fringe benefit.
50,000
Annuities: What amount is taxable and what amount is not, show formula
Recovery Months = number of years expected to pay x 12 months.( if not given )
Annuity amount / Recovery Months = amount not taxable.
Remaining is taxable
Cash Basis Taxpayer definition
For the year in which income is either actually or constructively received, whether in cash or in property.
Are life insurance policy proceeds taxable to corporation when an officer has deceased
No, life insurance proceeds in the life of an officer when the corporation is the owner and beneficiary are not reported as taxable income to the corp.
What is a non accountable plan
Expenses are not reported to the employer- any amounts received by an employee from the employer must be reported by the employers as part of wages on the employees W-2 for the year. The gross amount received is reported as income.
