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27 Cards in this Set
- Front
- Back
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What are the income EXCLUSIONS
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CAP M WEST WORK
CAPital returns, Military, Whole, Education scholarships, Support for child, Transfers WORK=ER provided benefits |
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What are above the line adjustments
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4SE AMISH EDUCATOR
4 for self emp ( 1/2 self emplyment tax, health insurance premiums, retirement plans and sch c Alimony Moving, IRA traditional, Student loan interest to $2.5K, Health service accounts, EDUCATORS $250 |
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What is the Nanny Tax
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Employers must withhold and pay FICA (SS and Medicare) taxes on the wages of most household workers if the wages exceed $1.8K
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What are the major itemized deductions
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CCMIT
Charitable, Casualty, Mortgage interest to $1 million debt or $100K equity loan--Medical expenses--Misc; Investment expense, Taxes Note deduction for medica capital improvements is lreduced y the value added to property |
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Which miscellaneous expenses have NO floor
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AIG
annuity basis recovery on final tax return Impairment related work expenses and IRD estate taxes Gambling losses |
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How is the amount of a deductible casualty determine
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Lesser of basis or decrease in FMV
Less insurance reimbursement Less % AGI Less $100/event |
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What are some of the AMT adjustments items
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AMT and ISOs give PMS
Accelerated depreciation; Misc Deductions; Taxes (a negative amt); ISOs, Personal exemptions, Medical,; Standard deductions also some investment interest and home equity ingerest |
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What are some of the AMT PREFERENCE items
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Preference items are always positive
A. Depletion, Depreciation, Drilling costs B. Interest on private Activity bonds C Section 1202 |
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What is the formula for AMTI
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Regular taxable income
+ positive AMT adjustments - Negative AMT adjustments + AMT preferences = AMT Income |
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How is the AMT calculated
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AMTI
Less AMT exemption = minimum tax basis X AMT Rate = Tentative AMT Tax - Regular income tax = AMT |
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How do you calculate a casualty loss
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Loss=LESSERj of Basis or DECREASE in FMV
- Insurance reimbursement - 10$ of AGI - $100 per event =deductible loss |
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What is reported on form 1041, estate tax return
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income (includes IRD) paid to etate) deductions, G/L from dispositions and any other DNI, distributable net income
tax liability deduction for income held for future distribution |
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What is included in the gross estate
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FMV, life insurance proceeds payable to estate or for policies owned by decedent payable to heirs, value of annuities or survivor benefits payable to heirs, value of certain property transferred within 3 years of DOD
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What are deductions from gross estate
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funeral, adm expenses, debts, martial deduction., charitable deduction. estate taxes paid, death tax alimony paid after tp death (treated as distributions to a beneficiary, decedents medical expenses, marital deduction
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What is the DSUE, deceased spousal unused exclusion
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unused portion of the decedent's predeceased spouse basic exclusion ONLY if the predeceased spouse died on or after 1/1/11 and a portability election was made on form 706
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What happens to the basis of property jointly held by h and w with ROS
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One half of property is included in gross estate and there is a step up in basis for that one haf.
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What gifts are not taxable
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Gifts that do not exceed the annual exclusion, tuition or medical expense paid diretly, gifts to spouse, gifts to a political organization for its use, charity
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How does a tp calculate gain on the sell of a property received as a gift
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gain is based on door's adjusted basis plus any gift tax paid on the donor's appreciation
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How does a tp calculate gain on the loss of a property received as a gift
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tp basis is the lower of donors adjusted basis or the FMV at date of gift
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If the donnee gives the donor something in return, what is the value of the gift
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FMV less amount donor receives
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What is IRD
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income earned but not received by DOD
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Where are the funeral costs deducted
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only as a deduction from gross estate on form 706
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How can expenses paid within one year of death be treated
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the personal representative can elect to treat all or part of the expenses as paid by the decedent at the time they were incurred and deduct them on the decedent's final tax return 1040
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What would happen if assets are distributed to beneficiary b4 estate tax paid
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beneficiaries can be held liable for tax debt up to the value of the assets distributed
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What is the limit of marital deduction to a noncitizen spouse
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$143K
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Is the an MFJ gift tax return (709)
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No each spouse must file separately
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When is an estate tax due
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9 months after DOD
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