SQ General Principals Flashcards
Damages received from age discrimination lawsuit are ________ .
Taxable.
Damages received for non-physical injury such as emotional distress, defamation and humiliation, although generally includable in gross income, are not subject to Federal employment taxes.
Emotional distress recovery must be on account of (attributed to) personal physical injuries or sickness unless the amount is for reimbursement of actual medical expenses related to emotional distress that was not previously deducted under IRC Section 213. See Emerson v, Comr., T.C. Memo 2003-82 & Witcher v. Comr., T.C. Memo 2002-292.
As a result of the amendment in 1996, mental and emotional distress arising from non-physical injuries are only excludible from gross income under IRC Section104(a)(2) only if received on account of physical injury or physical sickness.
Punitive damages are not excludable from gross income, with one exception. The exception applies to damages awarded for wrongful death, where under state law, the state statute provides only for punitive damages in wrongful death claims. In these cases, refer to IRC Section 104(c) which allows the exclusion of punitive damages. Burford v. United States, 642 F. Supp. 635 (N.D. Ala. 1986).
FHA mortgages are guaranteed by the _________ through insurance issued by the FHA.
Federal Budget Office
The _____________________ insures deposits for credit unions, similar to FDIC insurance. It is available to Federal and State chartered credit unions.
National Credit Union Share Insurance Fund
The business cycle begins in the ______.
Trough
Examples include:
* academic tutoring
* internet access for educational purposes
* room and board
* uniforms
* transportation
Coverdell qualified elementary expenses
Examples of investment instruments suitable for this purpose include Savings accounts and a CD close to maturity (within 90 days or less).
Emergency Fund.
investment instruments chosen as an emergency fund should be safe and liquid. Not EE bonds. Not a LOC.
Balance sheet reports assets at _________.
at current market value
