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19 Cards in this Set
- Front
- Back
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Tax-exempt organization must apply to government for exempt status unless:
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Less than $5K gross receipts
OR Church |
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Annual filing for tax-exempt org:
Form? Contents? Not required for? |
Form 990
Lists total contributions, income, major contributors, highest employee salaries Not required for 1) Churches 2) Orgs with gross receipts under $25K |
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UBI: definition
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Income earned from a business endeavor that is unrelated to purpose of the charity
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UBI: taxability? (general rule)
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Taxable over $1K
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Exclusions from UBI
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Sale of donated property
Operations run by volunteers Legal bingo Occasional sales and the like Interest and dividend revenues unless derived from investment of borrowed funds |
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Estate tax is reduced by:
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Debts of decedent
Funeral expenses Charitable bequests Amount conveyed to spouse Expenses of administering estate |
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When must estate tax return be filed?
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Within 9 months of death
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Taxable income of estate: calculation
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Income earned after death
Less charitable contributions Less conveyances to beneficiaries (up to amount of DNI) Less $600 exemption |
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DNI includes all income (including tax-exempt income) except:
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Capital gains/losses not allocated to income
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AMT for corporations: general formula
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Taxable income
+ Adjustments + Effect of removing benefit from preference items + ACE adjustment - Exemption |
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Simple vs. complex trust
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Simple trust is required to convey all income to beneficiaries when earned
Complex trust is not required to convey all income to beneficiaries |
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Gift tax: exemption & limitation
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Annual exemption of $12K per donee ($24K per couple)
Lifetime taxable limit of $1M per donor |
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Gift tax: exclusions
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Medical expenses if paid directly to provider
Tuition payments if paid directly to institution Payments to minor family members for support |
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AMT for corporation: adjustments
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Switch from installment sales to accrual method for inventory
Switch from double-declining balance to 15% declining balance depreciation |
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AMT for corporation: adjustments
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Switch from installment sales to accrual method for inventory
Switch from double-declining balance to 150% declining balance depreciation |
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AMT for corporation:
ACE adjustment items? How much is removed? |
Municipal bond interest
Life insurance proceeds 70% DRD Benefit from installment sales method for noninventory items 75% of benefit is removed |
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AMT for corporation: exemption
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$40K (reduced as AMT income exceeds $150K)
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AMT for individual: adjustments
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Remove
- Standard deduction - Personal exemptions - Home equity interest if not used for home improvement - Itemized deductions - Miscellaneous deductions subject to 2% floor Adjust: -Medical deduction floor from 7.5% of AGI to 10% of AGI |
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AMT for individual: exemption
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$58,000 for joint return
$40,250 for single or head-of-household |
