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12 Cards in this Set
- Front
- Back
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Rule for Gross Income: Must report for tax purposes even if taxpayer may later be required to ______________ the property, funds or equivalent
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Return
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Tax Benefit Rule: Where taxpayer __________ in one year what they later recover in next
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Deducts
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Child support is __________ to receiving spouse and ________________ to paying spouse
If payment is reduced by contingency then amount of reduction is considered _____________ |
Not Taxable
Not Deductible Child Support |
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Gross Income ___________ include amounts received by inheritance
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Does Not
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Tort Awards: Gross income does not include _________ received on account of physical personal injury or sickness but does include ______________
Damages for ___________ alone are taxable |
Damages
Punitive Damages Emotional Distress |
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Allowed standard deduction for mortgage on principle or secondary residence of up to __________
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1 million
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Tax Payer has _____________ when funds or property are credited to her account, set apart or otherwise made available do that they may draw upon them
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Constructive Receipt
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Recipient of Gift takes the ______________
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Donor's Basis
This is the Gain Rule |
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When Property loses value in donor's hands then receipt takes __________ on the date of the gift
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FMV
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No loss or gain is recognized when taxpayer exchanges a ___________________ property for like kind property
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Business or Investment
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No gain when loss damaged or stolen property is replaced with _______________ or related property or where damage is converted to money and money is used to buy similar replacement within __________ of involuntary conversion
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Similar or Related
2 years |
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Basis in Inherited Property: FMV of property at date of ____________ or upon executor's election of __________
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Death of Decedent
6 months following so if he paid 10k and its 100k fmv and she sells for 100 while he is alive: 90k taxable, but if he dies and leaves it to her 0 taxable 2010 only has own rule: exec can pay estate tax using inheritance rule or not pay estate tax and use gift rule. if latter heirs are entitled to increase substituted basis up to 1.3 million |
