Self-Employment, Farming & Adj. Flashcards
Are indirect moving expenses, including house-hunting trips, temporary living expenses related to sale of residence deductible?
No, only expense of actually moving the taxpayer, goods, are deductible above-the-line.
Net earnings from self-employment equals what?
Net income from self-employment reduced by the employer’s portion of FICA taxes (.0765)
Moving expense allowed if the taxpayer has a new place of work at least how many miles from the old residence?
50
What is the max contribution amount and what AGI threshold must joint filers be under to contribute to a Education Savings Account?
Max contribution = $2,000 and AGI Threshold = $190,000 and less than $220,000 for Join and $95,000 and less than $110,000 for single.
How do you calculate the conservation cost deduction for farming?
Limited to 25% of gross farm income
How do you calculate Domestic Production Gross Receipts?
The deduction for income attributable to domestic gross income for 2013 is equal to 9% of the lesser of the following:
The qualified production activities income (QPAI), The taxable income of the taxpayer, or 50% of the W-2 wages allocable only to qualified production activities income for the year.
QPAI is calculated by taking the DPGR and subtracting the sum of the following from it:
The cost of goods sold allocable to DPGR, Other deductions, expenses, or losses that are directly allocable to DPGR, and A proper share of other deductions, expenses, or losses that are not directly allocable to DPGR or another class of income.
Are the value of farm products used by farm labor deductible?
No, only farm labor and labor boarding costs.
What is the maximum annual deduction a taxpayer can deduct as a contribution to his qualified retirement plan?
The maximum annual deduction is limited to the lesser of 25% of the self-employed earnings or $51,000.
