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34 Cards in this Set
- Front
- Back
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Charitable contributions (cash) (1040) |
Sch A - Itemized Limited to 50% AGI Excess CO for 5 years |
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Charitable contributions (property) (1040) |
Sch A - Itemized Limited to 30% AGI FMV used |
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Interest Expense (1040) |
Interest on up to $1.1 million of acquisition and home equity indebtedness deductible on Sch A |
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Earned income credit (EIC) |
-refundable -for very low income tax payers -must live in US and be over 25 and under 65 -R2-49 |
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Safe Harbor (1040) |
-90% of current year tax liability Or -100% PY tax liability Exception: if AGI > 150,000 then pay 110% of PY tax liability |
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Homeowner's Exclusion |
Single - $250,000 Joint - $500,000 Exclusion of gain on sale of principal residence. Must be used as principal residence 2/5 last years |
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What is gain recognized on like-kind exchange? |
Lesser of gain realized or boot received |
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Capital losses carry back/forward for corporation |
3 back, 5 forward "short term" R4-58 |
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Who is not allowed to claim Chapter 7 bankruptcy? |
No RIBS Railroads Insurance companies Banks Small business investment companies |
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Who is not allowed to claim Chapter 11 bankruptcy? |
No BIBS Brokers Insurance companies Banks Small business investment companies (Railroads CAN claim chapter 11) |
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What types of bankruptcy can individuals, partnerships, and corporations claim? |
-IPC's can claim Chapters 7 & 11 Bankruptcy -Only individuals can claim Chapter 13 |
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What 4 events are considered "fundamental changes" in a corporation and what is a fundamental change? |
DAMS Dissolution Amendments to the articles of incorporation Mergers, consolidations Sale of substantially all assets outside regular course of business Need both majority shareholder AND board approval |
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Which one is included in interest income: Interest on federal tax refund / interest on state tax refund? |
Both are included in interest income |
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Which is taxable: interest on federal obligations / interest on state obligations? |
Interest on federal government obligations are included in interest income. State interest is not. |
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Exemptions: CARES |
Pneumonic for qualified child exemption. Must meet ALL criteria: Close relative Age limit Residency Eliminate gross income test Support test (R1-12) |
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Standard deduction for individuals over 65 |
Over 65 entitled to additional $1,250 |
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What are the AMT tax rates? |
26% & 28% |
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Depreciation recapture |
Upon disposition of a tangible depreciable asset used in business, ordinary income is recognized to the extent of the lesser of the amount of gain realized or depreciation taken. |
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What is the penalty for prematurely withdrawing from IRA? |
10% penalty tax. Exceptions to this penalty follow the HIM DEaD pnemonic. Home buyer 1st home, $10k max Insurance Medical Disability Education and Death |
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Does investment land and building qualify for like-kind exchange? |
Yes! |
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Like-kind exchange is not available for what? |
Not available for inventory, investments in bonds, partnerships and corporate stocks, or personal use property. |
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Sec 1231 assets |
Depreciable personal and real property used in business, held over 12 months. |
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Sec 1245 Property |
Personal property used in business over 12 months. |
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Sec 1245 Recapture |
Ordinary income = Lesser of gain recognized or all A/D |
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Corporate capital loss carryback/carryforward |
Back 3 forward 5 |
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Rental real estate losses for if actively participates |
Up to $25,000 can offset income from non-passive income. Reduced by 50% of excess income over $100,000 |
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List some AMT adjustments (items AMT does not allow) |
State taxes Real estate taxes Miscellaneous itemized deductions Home equity interest NOT used for buy/build/improve home |
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Maximum Sec 179 deduction for 2017 and phase-out |
$510,000 Reduced by amount in excess of property PIS during the year greater than $2,030,000 |
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Novation |
When a contract substitutes a new party for an old party |
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Estates distribution deduction |
Lesser of actual distributions (reduced by TE income included in dist) or distributable net income (less TE income included) |
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Charitable contributions for C-Corp |
Limited to 10% of taxable income. TI calculated before CC deds, DRD, cap loss carryback, DPAD |
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Casualty losses |
-Loss is lower of FMV or lost basis. -Net of any insurance reimbursement. -Add back $100 per loss. |
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Casualty losses phase-out |
10% AGI floor |
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Treatment of inherited assets |
-Automatically treated as long-term -Basis of inherited asset is FMV at date of death (or alternate valuation date) |
