Income Tax

Front 1

do you get an extra exemption for being blind? Y/N

Back 1

N

Front 2

What is child care credit amount?

Back 2

limited to $3000 for 1 child
up to $6000 for 2 kids

Front 3

What is best source for info for the intent of a recent tax law change?

Back 3

Congressional Committee Reports

Front 4

Is sick pay taxable? Y/N

Back 4

Y

Front 5

What is income threshold to claim parent as dependent?

Back 5

< $3500

Front 6

Margin interest is only deductible up to the amount of _____ income

Back 6

investment

Front 7

Figure self employment tax

Back 7

.9235 x 15.3%

Front 8

Add add'l ____ of std deduction for child with unearned income

Back 8

$300

Front 9

for large income earners, by what amount can std deduction be reduced?

Back 9

1% of AGI or 80% otherwise allowable

Front 10

If company elects FIFO how will inventory be reflected on balance sheet?

Back 10

reflect current cost

Front 11

Can sole proprietors carry back losses? NOL? Y/N

Back 11

Y

Front 12

Using FIFO, how will inventory reflect on balance sheet?

Back 12

reflect curent cost

Front 13

Which type of biz can't use NOL?

Back 13

S corp

Front 14

Add ___ to std deduction with child with unearned income

Back 14

$300

Front 15

Margin interest is deductible only up to amount of ______ income.

Back 15

investment

Front 16

For large income earners by what amount can their deductions be reduced?

Back 16

1% of AGI or 80% otherwise allowable

Front 17

PSCs pay a ___ rate. PHC pays a ___ rate

Back 17

35%
15%

Front 18

A revocable living trust is a conduit (tax neutral) trust. T/F

Back 18

T

Front 19

If trust income is used to satisgy a grantor's legal support obligation, the trust income will be taxed to the _____

Back 19

grantor

Front 20

Straight line depreciation rates

Back 20

5 year 10%
7 year 7.14%

Front 21

MACRS depreciation rates

Back 21

5 year 7 year
1 20% 14.29%
2 32% 24.49%

Front 22

____ property quals under Sections 179

Back 22

1245

Front 23

In like kind exchange use 3 #s

Back 23

FMV of property rec
Adj basis of property given up
Boot

Front 24

The recognized gain is the lesser of the _____or the _____

Back 24

boot
gain realized

Front 25

NOL can carry back back losses for ___ years and carry forward loseses for ____

Back 25

2
20

Front 26

Entity (corp owned) purchase life insurance may affect corporate AMT. T/F

Back 26

T

Front 27

Increasing taxable income, Selling home/renting, paying off existing mortgage all reduce AMT. T/F

Back 27

T

Front 28

unused passive losses from a non-publically traded limited partnership can be used against a master limited partnership (public). T/F

Back 28

F

Front 29

Divorce decree gives payor spouse and kids rent free occupancy of the family home. Qual alimony payment? Y/N

Back 29

N

Front 30

For alimony recapture, add 1st and 2nd year...then subtract ____

Back 30

37,500

Front 31

Do I bonds produce phantom income?

Back 31

No, inflation and fixed income are tax deferred until redemption or maturity.

Front 32

Short term max deduction is ___ of AGI. Long term max deduction is ___ of AGI.

Back 32

50%
30%

Front 33

If you are donating loss property, you can deduct up to _____.

Back 33

FMV

Front 34

The limit that a corp can contribute to a 50% public charity is _____ of taxable income.

Back 34

10%

Front 35

You must add gambling winnings to get to AGI T/F

Back 35

T - you can subtract gambling losses from winnings

Front 36

The exclusion for EE bonds begins to phase out at an AGI of approximately _____ for joint filers for 2009

Back 36

$105,000

Front 37

There is no deduction allowed for interest paid or accrued on debt incurred to purchase tax-exempt securities. T/F

Back 37

T

Front 38

Kiddie tax applies to earned/unearned income above ____

Back 38

unearned
$1900

Front 39

____of the dividends received from a qualifying corporation may be excluded if the recipient corporation owns 20% or less of the distributing corporation; ____ exclusion if over 20% to 80% ownership; ____ exclusion if over 80% ownership

Back 39

70%
80%
100%

Front 40

If a renter provides repairs to a landlord..must you incl that in income received? Y/N

Back 40

Y

Front 41

The Section 1231 lookback rule only applies if there are current year net Section 1231 ____and unrecaptured Section 1231 _____during the 5-year lookback period.

Back 41

gains
losses

Front 42

The Section 1245 cost recovery recapture is the lesser of the cost recovery deductions taken or the gain realized. T/F

Back 42

T

Front 43

The negligence penalty is ____of the deficiency due to the taxpayer's negligence

Back 43

20%

Front 44

If a corporation owns the annuity contract, the earnings are not tax-deferred. T/F

Back 44

T

Front 45

If you borrow interest from a life insurance policy (whole life) do you have do report it as income? Y/N

Back 45

Y

Front 46

The penalty for failing to file an income tax return is ___ of the amount due for each month, or part thereof, that the return is late, up to a maximum penalty of ____

Back 46

5%
25%

Front 47

The general partnership business form does not require registration with the state. T/F

Back 47

T

Front 48

Is the property tax deduction incl in computing the AMT? Y/N

Back 48

N

Front 49

EE Bond Interest phaseouts

Back 49

69,950 - 84,950 S
104,900 - 134,900 MFJ

Front 50

For 2009, the maximum expense election is ______

Back 50

133,000

Front 51

Interest on a home equity loan up to _____of principal is generally deductible

Back 51

100K

Front 52

Corp Divs are taxed at ____ tax rate.

Back 52

15%

Front 53

Husband and wife in an S corp are treated as ____ shareholder(s).

Back 53

one

Front 54

SE Tax Calc

Back 54

Multiply by .1413 if under 106,800
1.Sub 1/2 SE tax
2. 106,800 x 15.3%
3. Excess of 106,800 x 2.9%

Front 55

The Section 1245 cost recovery recapture is the lesser of the cost recovery deductions taken or the gain realized. T/F

Back 55

T

Front 56

to figure accumluated earnings tax

Back 56

Taxable Income
- Fed Income Tax
- Dividends
- Accumulated earnings credit
Subtotal X 15%

Front 57

Gambling losses are only deductible to the extent of gambling _____

Back 57

winnings

Front 58

AGI Phaseout ___% over ____

Back 58

3% over 166,800

Front 59

To get to taxable income remember to subtract _____ in exemptions!

Back 59

$3650

Front 60

Embezzlment income is included in taxable income. T/F

Back 60

T

Front 61

Kiddie tax applies to kids who get ____ income and are under age ___ or a full time student and under age ____

Back 61

unearned
19
24

Front 62

Income tax negligence is ____

Back 62

20%

Front 63

If a corporation owns the annuity contract, the earnings are not tax-deferred. T/F

Back 63

T

Front 64

The penalty for failing to file an income tax return is ___ of the amount due for each month, or part thereof, that the return is late, up to a maximum penalty of ____

Back 64

5%
25%

Front 65

Is a Gen Partnership a "statutory entity?" Y/N (chartered by the state)

Back 65

N

Front 66

The compensation for lost wages and the punitive damages are both included in income (not negligence damages). T/F

Back 66

T

Front 67

If the FMV on the date of gift is greater than the donor's adjusted basis, use the donor's adjusted basis. T

Back 67

T

Front 68

Basis for a partnership is cash plus partnership debt. Basis for a corporation is only up to cash contributed, not debt
even if personally endorsed. T/F

Back 68

T

Front 69

S corp can use NOLs..T/F

Back 69

F

Front 70

How long can an excess charitable contributions be carried forward to future years?

Back 70

5 years or death if sooner

Front 71

Collectibles are taxed at

Back 71

28%

Front 72

if you have a ST loss and a LT loss you use ___ loss first (can't add)

Back 72

ST

Front 73

A CODA is a ____ plan

Back 73

401(k)

Front 74

1245 gain is ___
1231 gain is

Back 74

ordinary income
capital gain

Front 75

Wash sales occur when a taxpayer disposes of securities at a loss and acquires identical securities within ____ BEFORE or AFTER day of sale

Back 75

30 days

Front 76

for home sale exclusion on a job or health issue..you prorate the exclusion based on 5 year rule Y/N

Back 76

Y

Front 77

if unmarried partner has time in home prior to sale of home..does that count for exclusion for home sale?

Back 77

Y

Front 78

Sec 267, 1244 and wash sales apply to ____ only

Back 78

losses

Front 79

under sec 1244, a single taxpayer can deduct up to ___ and ___ for MFJ

Back 79

50K
100K

Front 80

in like kind exchange...debt relief is treated as

Back 80

boot

Front 81

Section 1033 is

Back 81

deferral of gain on condemnation of property, destruction, theft etc

Front 82

for section 1033 use ___ year end

Back 82

fiscal

Front 83

Gain must be recognized for exchange of annuity for life policy Y/N

Back 83

Y

Front 84

1040 Personal income tax exemption

Back 84

3650

Front 85

is worker's comp incl in gross income? Y/N?

Back 85

N

Front 86

are scholarships for room and board incl in gross income? Y/N

Back 86

Y

Front 87

alimony recapture (only first 3 years of alimony)

Back 87

P1+P2- 2P3 - 37,500

Front 88

tax planning opp...front load alimony payments in year 1 and 2 when taxpayer is in higher tax bracket Y/N

Back 88

Y

Front 89

5 year carry forward on excess charitable contributions Y/N

Back 89

Y

Front 90

Casualty loss is lesser of
Then back out $100
Then back out 10% of AGI

Back 90

decline of FMV or adj tax basis

Front 91

Are medical co pays and deductibles deductible on Schedule A Y/N

Back 91

Y

Front 92

Not subj to 2% misc
IGA

Back 92

IRD
Gambling losses
Annuity losses for decedent annuitant

Front 93

Child tax credit is ____ for child under ___

Back 93

$1000/17

Front 94

Child tax credit phaseout

Back 94

Single 75K
MFJ 110K

Front 95

Dependent care credit is ___ expenses paid for qual expenses for child under ___. The lesser of $3000 or actual expenses. 20% of $6000 max

Back 95

20% of expenses paid
13

Front 96

Utilizing Dependent Care Expense Account usually will provide greater tax savings T/F

Back 96

T

Front 97

Kiddie tax applies to kids under age 19 with living parent or under age 24 and a full time student. Unearned income in excess of ___ Then a parent's marginal tax rate

Back 97

1900

Front 98

std deduction for dependent ..greater than ___ or earned income plus ____

Back 98

950
300

Front 99

Rental use property is greater than 14 days...used personally less than the greater of ___ of rental days or ___ days

Back 99

10%
14

Front 100

Failure to pay penalty is ___ up to ___

Back 100

5%
25%

Front 101

A CFP can/not represent a client at an IRS audit

Back 101

can not

Front 102

which organization never pays Federal tax

Back 102

partnership

Front 103

Section 179 max

Back 103

134,000

Front 104

5 tests of dependency exemption test

Back 104

gross income, support, member of household or family, citizenship or residence, and joint return

Front 105

If as part of an academic scholarship a student receives $ for room and board..is this taxable income? Y/N

Back 105

Y

Front 106

Are prizes and awards fully taxable as income? Y/N

Back 106

Y

Front 107

Are punitive damages incl in taxable income Y/N

Back 107

Y

Front 108

What is the inclusion amount re: leased vehicles?

Back 108

The inclusion amount is designed to help to even out the lease expense vs. depreciation expense

Front 109

What is the min deductible for a family with a high ded health policy?

Back 109

2400 (1200 single)

Front 110

Def of Substitute Basis

Back 110

The substitute basis is the asset’s fair market value reduced by the gain realized but not recognized

Front 111

Cost recovery of an intangible asset is accomplished through

Back 111

amortization

Front 112

The standard deduction for a dependent is the greater of ___ or $____ but not exceeding the normal standard deduction of ___

Back 112

$950 or $300 plus earned inc but not exceeding $5700

Front 113

For purposes of tax deductibility what is the minimum deductible that a family can have on a high deductible health policy in the current year?

Back 113

2400

Front 114

Computers use ___ for depreciation. Autos use ___

Back 114

5 years
5 years

Front 115

Purpose of depreciation recapture

Back 115

when an asset is sold the taxpayer receives his capital back tax free

Front 116

Any sale amount in excess of the original purchase price of a 1245 asset is _____

Back 116

1231 gain