includes all income from whatever source derived, unless specifically excluded & must be realized and recognized
Term
Definition of REALIZED income
Definition
must be a transaction which gives rise to the income
Term
Definition of RECOGNIZED income
Definition
transaction must be a taxable event, and not a transaction for which nonrecognition is provided in the IRC
Term
Exclusions
Definition
income items which are not included in gross income
Term
Deductions
(for AGI), (from AGI)
Definition
amounts that are subtracted from income to arrive at adjusted gross income or taxable income
for AGI->above the line arrives at AGI
from AGI->arrives at taxable income
Term
Payments received for support of minor children
Definition
Excluded from Gross Income
Term
Property Settlement received in Divorce
Definition
Excluded from Gross Income
Term
Excluded Portion of Annuities
Definition
Net Cost of Annuity/Expected Total Aunnity Payments= Payment Received
Term
Life Insurance Proceeds
Definition
Generally Excluded if paid by reason of death
Term
How are research grants taxed for people that are not currently students trying to get a B,M or PhD?
Definition
Like taxable Income
Term
When should an accrual-basis taxpayer report gross income?
Definition
When "all events" have occured that fix the taxpayer's right to receive the item of income, and hte amount can be determined with reasonable accuracy.
Term
Under the cash method of reporting, an individual should reort gross income
Definition
For the year in which income is either actually or constructively received either in cash or in property.
Term
A NOL generally represents a loss from the conduct of a trade or business and can be carried....
Definition
can be carried back 2 years and forward 20 years to offset income in the carryback and carryforward years.
Term
The rule limiting the allowability of passive activity losses and credits applies to
Definition
Personal service corporations
Term
How is the depreciation deduction for nonresidential real property, placed in service in 2008, determined for regular purposes using MACRS?
Definition
The straight-line method of depreciation over a period of 39 years must be used for regular tax purposes to determine the MACRS depreciation deduction for nonresidential real property placed in service during 2008
Term
Midmonth Convention
Definition
d
Term
Under the modified accelerated cost recovery system (MACRS) the midquarter convention applies if
Definition
More than 40% of all personal property is placed in service during the last quarter of the taxpayer's tax year
Term
Section 179
Definition
Sec. 179 permits a taxpayer to elect to treat up to $250,000 of the cost of qualifying depreciable personal property as an expense rather than as a capital expenditure.However, the $250,000 maximum is reduced dollar-for-dollar by the cost of qualifying property placed in service during the taxable year that exceeds $800,000.
Term
Which one of the following statements concerning Roth IRAs is correct?
Definition
Term
What is the maximum amount of adjusted gross income that a taxpayer may have and still qualify to roll over the balance from a traditional individual retirement account (IRA) into a Roth IRA?
Definition
$100,000
Term
What is an education IRA (Coverdell Education Savings Account)?
Definition
Contributions to an education IRA are not deductible, but withdrawals of earnings will be tax-free if used to pay the qualified education expenses of the designated beneficiary.The maximum annual amount that can be contributed to an education IRA is limited to $2,000, but the annual contribution is phased out for single taxpayers with modified AGI between $95,000 and $110,000, and for married taxpayers with modified AGI between $190,000 and $220,000.Contributions cannot be made to an education IRA after the date on which the designated beneficiary reaches age 18.
Term
Charitable contributions subject to the 50% limit that are not fully deductible in the year made may be
Definition
Carried forward 5 years.
Term
The alternate minimum tax (AMT) is computed as the
Definition
Excess of the tentative AMT over the regular tax.
Term
The credit for prior year alternative minimum tax liability may be carried...
Definition
forward indefinitely.
Term
A general business credit in excess of the limitation amount is carried
