Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
4 Cards in this Set
- Front
- Back
|
Foreign Earned Income Exclusion
|
Expatriates can exclude $95,100 foreign wages from gross income for U.S. tax purposes
- Can't Claim foreign tax credit on excluded income |
|
|
Nonqualified Stock Option (NSO)
|
Employee has taxable compensation equal to excess of FMV of stock over exercise price
- taxable excess is referred to as the bargain element - employee basis in stock is FMV at exercise date - Employer is allowed a deduction in the year of exercise equal to employee's taxable compensation |
|
|
Incentive Stock Option (ISO)
|
No compensation income to employee on exercise of ISO
- Employee's basis in stock is cost - Untaxed bargain element is AMT preference item - No employer deduction for bargain element - individuals may want to avoid exercising ISO's in year in which they have any exposure to AMT |
|
|
IRA contributions
|
Individuals can contribute up to $5,000 on an IRA
- no contribution after 70.5 years of age |
