Term
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Definition
INCLUDED in income.
DEDUCTABLE FOR AGI. |
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Term
STATE TAXES PAID
REAL ESTATE TAXES PAID
DMV FEES (ad valorem) |
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Definition
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Term
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Definition
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Term
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Definition
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Term
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Definition
No Joint Return.
More than 1/2 cost of maintaining home.
Spouse gone for the last 6 months of the tax year.
Dependent child lived at the home for at least half the year. |
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Term
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Definition
Joint return rates for 2 years
IF
Surviving spouse maintains the household for the dependednt child |
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Term
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Definition
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Term
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Definition
EXCLUDED from income
if FURNISHED for the convenience of the employer.
ON the employer's BUSINESS PREMISES
If more than half employees receive meals for the convenience of the employer, then ALL such meals are treated that way. |
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Term
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Definition
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Term
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Definition
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Term
| Unreimbursed Employee Expenses |
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Definition
Shedule A (MISC)
2% AGI rule applies |
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Term
| One dollar of tax exempt income is worth $__.___ |
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Definition
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Term
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Definition
| EXCLUDED from gross income |
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Term
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Definition
| EXCLUDED from gross income |
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Term
| LIFE INSURANCE PROCEEDS PAID BY REASON OF DEATH |
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Definition
| EXCLUDED from gross income |
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Term
| ACCELERATED DEATH BENEFITS |
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Definition
NOT EXCLUDED unless
Terminally or chronically ill |
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Term
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Definition
EXCLUDED from gross income if used for tuition and books/supplies.
NOT excluded if used for room/board/anything else. |
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Term
| Injury and sickness payments |
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Definition
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Term
| Amounts received under insurance contracts for certain living expenses |
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Definition
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Term
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Definition
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Term
| Reimbursement for costs of caring for a foster child |
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Definition
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Term
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Definition
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Term
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Definition
EXCLUDED from income
(Occasional parties, taxi fare, occasional personal copy machine use) |
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Term
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Definition
EXCLUDED from income.
(Something the company pays for, but would have been deductible anyway) |
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Term
| Qualified employee discount |
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Definition
Excluded from income
(Can't be real property.
Can't be property that's commonly held for investment.
Must be from same line of business as Employee's work.
If PROPERTY --> Exclusion < Gross profit to customers
If Service --> Exclustion < 20% of customer price |
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Term
EXCLUSIONS FROM INCOME
Statutory Authority comes from which sections? |
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Definition
Sections 101 through 150
Statutory authority is REQUIRED to exclude from gross income. |
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Term
GIFT of income-producing property
Who/what is taxed? |
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Definition
EXCLUDED from income by recipient.
Recipient taxed on income produced |
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Term
GIFT TAX
How much is the exclusion? |
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Definition
2012 - 13,000 Exclusion allowed PER DONOR.
Assessed at Fair Market Value
and DATE of transfer |
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Term
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Definition
Gift tax Exclusion = 13,000
CANNOT be made for any reason other than affection, respect, admiration... |
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Term
| Payments BY employer for funeral expenses |
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Definition
| EXCLUDED from income IF for qualified disaster. |
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Term
| Scholarship Specifically to key employees |
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Definition
Hidden compensation.
INCLUDABLE in income |
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Term
COMPENSATORY damages.
PERSONAL INJURY or PHYSICAL SICKNESS. |
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Definition
| Excludable from gross income |
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Term
COMPENSATORY damages
Emotional distress
Discrimination
Reputation damages |
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Definition
| NOT excludible from gross income |
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Term
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Definition
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Term
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Definition
Treated as Gain if over basis amount
Loss if under basis amount
Personal use property loss generally not deductible. |
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Term
| Shareholder chose to receive stock instead of cash. |
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Definition
| Stock value is considered income |
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Term
Qualified Tuition Program
(529 plan) |
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Definition
Interest not included in gross income.
Payouts not included in gross income. |
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Term
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Definition
| If taxpayer takes deduction for x amount in year 1, and later gets the amount back, the amount up to the tax benefit received is INCLUDED in gross income. |
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Term
CHARITY
MEDICAL
STATE TAXES
MORTGAGE INTEREST
PERSONAL CASUALTY LOSSES |
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Definition
Deductions FROM AGI
Med is only for that above 7.5%AGI
Personal Cusualty 10%AGI floor/$100 per |
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Term
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Definition
Domestic - not deductible
Foreign - deductible if doesn't violate FCPA |
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Term
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Definition
All events test
Economic performance test |
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Term
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Definition
| Deductible only to to the extent of hobby income |
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Term
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Definition
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Term
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Definition
| Remove $100 and then 10% agi |
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Term
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Definition
General: Back 2, over 20
Disaster/Casualty/Theft: Back 3,Over 20
Small Business: Back 3, over 20
Farming loss: Back 5, over 20 (separate from other NOL) |
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Term
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Definition
$50k limit
$100k for MFJointly
Anything extra treated as capital loss. |
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Term
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Definition
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Term
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Definition
treated as Short term Capital loss..
3000 to offset ordinary income. |
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Term
| Can cash basis taxpayer claim bad debt deduction? |
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Definition
-income from creation of the receivable included in income.
cash basis taxpayer can't claim deduction since no income was created |
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Term
When are
-Business bad debts
-nonbusiness bad debts
deductible? |
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Definition
-Business-->the same year as partially or totally worthless
-nonbusiness-->only in the year of total worthlessness |
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Term
| Specific charge off method |
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Definition
| Deduct as ordinary loss in the same tax year it became worthless or partially worthless |
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Term
| IF a security becomes worthless... |
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Definition
| Treated as worthless as of the last day of the taxable year |
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Term
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Definition
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Term
| Ordinary loss treatment of 1244 stock... |
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Definition
Individuals only
Acquired the stock from the CORP only
Ordinary loss treatment limited to $50,000 and $100,000 for MFJ. Anything above that is reg. capital loss. |
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Term
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Definition
ONLY
-losses incurred in trade/business
-Losses incurred in transaction for profit
-Casualty losses |
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Term
| Disease and insect damage |
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Definition
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Term
Loss from event that's
Identifiable
Damaging to property
Sudden, unexpected, unusual |
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Definition
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Term
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Definition
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Term
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Definition
| deduct in the year of DISCOVERY |
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Term
Partial casualty deduction amount.
FMV-after accident value
or Adjusted basis |
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Definition
Lesser of
decline in value
or
adjusted basis |
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Term
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Definition
ONLY LOSSES FROM
Trade or Business ops
casualty and theft
foreign govt. Confiscations |
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Term
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Definition
First back 2
then forward to 20
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3 back for individuals
3 back for small business from disasters
5 back for farm loss |
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Term
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Definition
7 days or less
less than 25% for personal purposes
Travel days are business days
weekends considered business days if between other business days. |
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