Taxation Calculations Flashcards
What is the AMT Formula for corporations? 14 steps
Regular taxable income before NOL carry forward \+ tax preference items \+/- adjustments = pre Ace AMTI \+/- Ace Adjustment = AMTI - exemption amount = AMTI tax base X 20% rate = tentative minimum tax before foreign tax credit - AMT foreign tax credit = Tentative minimum tax (TMT) - regular income tax - regular foreign tax credit = AMT (if positive)
Maximum exemption on corporate AMT?
$40,000
What does TMT stand for?
Tentative minimum tax
What is the formula for Personal Holding Company (PHC) tax? 14 steps
Taxable income \+ dividends received deduction \+ NOL deduction (except NOL preceding year) - federal and foreign income taxes - Charitable contributions in excess of 10% limit - net capital loss - Net LTCG over NSTCL (net of tax) = adjusted taxable income - dividends paid during taxable year - dividends paid within 2.5 months after year end - dividend carryover - consent dividends = undistributed PHC income X 20% = Personal Holding Company Tax
For the PHC tax computation, dividends paid within 2.5 months after the close of the year are limited to…
20% dividends actually paid during year
Accumulated Earnings Tax calculation? 14
Taxable Income \+ DRD deduction \+ NOL deduction - federal and foreign income taxes - excess charitable contributions (over 10% limit) - net capital loss - net LTCG over net STCL (NOT) = adjusted taxable income - dividends paid last 9.5 months of tax year and 2.5 months after close - consent dividends - accumulated earnings credit = acc. Taxable income x 20% = Acc. Earnings Tax
DRD deduction
Dividends received deduction
What is the AMT formula for individuals? 12 steps
Regular taxable income \+/- Adjustments \+ Tax preferences = alternative minimum taxable income - exemption amount = alternative minimum tax base X 26% or 28% = tentative before foreign tax credit - AMT foreign tax credit = tentative minimum tax - regular tax liability - regular foreign tax credit = AMT (if positive)
Schedule M-2 calculation 6
Balance at beginning of year \+ net income per books \+ other increases - dividends to shareholders -other decreases = balance at end of year
S-Corp stock basis calculation 5
Beginning basis of stock \+ all income items - withdrawals of assets \+ contributions of money or property = basis
In an S-corporation’s basis calculation, share of all income items includes…
Taxable and nontaxable income
Taxable Gifts Formula. 11 lines
Gross Gifts (cash + FMV of property at date of gift)
+ 50% of spouse’s gifts to third parties if gift splitting elected
- 50% gifts to 3rd parties treated given by spouse if gift splitting elected
- annual exclusion ($14,000 per donee)
- unlimited exclusion for tuition and medical
- unlimited exclusion for gifts to political organizations
- charitable gifts
- marital deduction
= taxable gifts for current year
+ taxable gifts for prior years
= total taxable gifts
Charitable gifts in gift tax formula computation are for…
Remainder of charitable gifts after annual exclusion
Estate tax formula 16 lines
Gross estate - funeral expenses - administrative expenses - debts and mortgages - casualty losses - state death taxes - charitable bequests (unlimited) - marital deduction (unlimited) = taxable estate \+ post 76 adjusted taxable gifts = total taxable life and death transfers \+ tax on total transfers - post 76 gift taxes - transfer tax credit - foreign death and prior transfer tax credits = net estate tax liability
Bankruptcy priority 11
Secured creditors Administrative costs Gap Creditors Wages unpaid Employee benefits unpaid Grain producers and Fisherman unpaid Consumer Deposits Taxes Obligations (bank) Accidents Miscellaneous
