Regu 2 Flashcards
State income tax refund
Taxable
Federal governmental obligations
Taxable
Tax consequences
Cash + fmv bond
Corporation casualty loss
Corporations do not have to reduce casualty losses by either a statutory floor or by 10% of AGI
Consolidated company (if parent 80%) do not report
Dividend income
Medical standard deduction
12,200
No recognition of gain
In order to qualify, a taxpayer has to acquiere qualified replacement property within 2 years after close of the 1st year.
Reorganization exchange
Nontaxable
Brankruptcy chapter 11 annual monetary incentives
Must be 10X average inducements offered to non-management employees and the inducement should be less than that
A taxpayer pays self employment tax on the earnings of the business if.
Net earnings of self-employment taxes are $400 or more
How to determine taxable gain each year?
- Calculate gross profit (sales price- cost basis)
- Calculate gross profit % = (gross profit)/ sales price
- Cash collection year 1 = down payment + installment payment
Taxable gain in year 1 = 5000 * .5
Add back in alternative minimum tax
- Standard deduction
- Real estate taxes paid
- State income taxes paid
Charitable contribution deduction on schedule A
- Do not qualify contribution to senador campaign
2. Contribution to foreign organization
Adoption credit
Up to $14,080
Gross estate in the federal tax return includes
All property own including personal items and jewerly as wel as the jointly held land