REG Deck #2 Flashcards
Ways in which Actual Authority is cancelled?
1) Death of principle
2) Incapacity of principle
3) Bankruptcy of principle
4) Failure to acquire a license
5) Destruction of subject matter
6) Illegality after the fact
What is the % deductions for Dividend-Received Deductions?
If Dividends/Taxable Income is
0%-20% = 50%
20%-80% = 65%
80%> = 100%
Six nondischargeable debts?
WAFTED:
1) Willful and malicious injury
2) Alimony/child support
3) Fraud
4) Taxes
5) Educational loans
6) Debts undisclosed in petition
Priority rules for distribution of Debtors Estate?
1) Secured Creditors
2) Priority Creditors (Alimony, Admin fees, ordinary course of business, wages earned 180 days $15,150, benefits, farmers/fishers $7,475, deposits $3,350, tax claims, DIUs injury)
3) General Creditors
What are the qualifications for child tax credit?
1) $2k per child
2) Reduce $2k by $50 for each $1k over tax limit ($200k/400k AGI tax limit for Single/MFJ)
Rules for calculation on the Kiddie Tax?
1) Under 18 year of age (or 18-24 >half of their support or full time student)
2) Net Unearned Income is deducted by $2,500
3) Earned Income > $1,250 then Standard Deduction = Earned Income + $400
Rules for Child and Dependent Care Credit?
1) Child under age 13, Disabled dependent or spouse
2) $3k for one dependent, $6k for two or more dependents
3) Expenses limited to the lowest earned income, actual expenses incurred, or maximum allowable amount
4) AGI > $43k = 20% of AGI or deduction
AGI >$15k = credit decreases by 1% for each $2k above $15k
AGI <$15k = 35% or AGI or deduction
Exceptions for IRA premature distributions?
“HIMDEAD”
Home buyer
Insurance
Medical expenses
Disability
Education
Adoption or birth of child (1 year)
Death
What is the Deductions rules for SEC 179 Depreciation?
1) Allowance is $1.16M for 2023
2) Max Amount is $2.89M for 2023 - any amount over this limit is deducted in place of the allowance of $1.16M
3) SUV limit of $28,900
What is the allowable tax limit for gifts and lifetime tax exclusion?
$17,000/$34,000 Single/Married
$12.920M (gifts over the allowed amount deduct this lifetime exclusion)
What are the rules for American Opportunity Tax Credit?
1) 100% of the first $2k + 25% of the next $2k for the year.
2) Max credit is $2.5k
3) $1k may be refunded
What are the rules for Lifetime Learning Credit?
1) 20% of qualified expenses ($2k limit)
2) Max credit is $10k per year
What are the exceptions for Statute of Frauds?
Sale of good for $500> must be written, except for SWAP:
1) Specifically manufactured goods
2) Written confirmation
3) Admitted in court
4) Performance (if performance was accepted)
What are the different Bankruptcy Chapters?
Chapter 7 - liquidation (trustee)
Chapter 9 - municipal debt (farmer cannot seek debt)
Chapter 11 - reorganization
Chapter 13 - adjustment of debt (trustee)
Chapter 15 - foreign
Social Security contains what benefit programs?
1) OASI (old age and survivors insurance)
2) DI (disability insurance)
3) Medicare
4) SSI (supplemental security income)
