REG mod 35i Flashcards
Who is required to file form 1040?
Individuals who have gross income equal to or greater than the sum of the standard deduction and personal exemption
What does ACE stand for in the AMT calculation?
Adjusted Current Earnings
What is required to use the filing status Married Filing Joint?
The people must be married at the end of the year.
The statute of limitations period for tax returns begins on…
The due date of the tax return or the date that the tax return was actually filed. Select the later of the two.
Up to what percent of capital gains on Qualified Small Business Stock may be excluded?
An individual taxpayer may exclude, in certain circumstances, up to 100% of the gain.
What rate is used to calculate the tax on earned income of a child?
The child’s marginal tax rate.
What are mortgage points? Are mortgage points deductible?
Mortgage points represent prepaid interest on the purchase of a home or improving a home. They are deductible on schedule A.
The gift tax exclusion is $14,000. True / False
True. The exclusion is $14,000 per person receiving the gift. Note: This only applies to gifts of present interest.
What form is used to file a gift tax return?
Form 709
What is the treatment of Preference items in the AMT calculation?
Preference items are added to regular taxable income.
What is the limitation of Section 179?
Taxable income. Section 179 can be used to reduce taxable income to zero, but it cannot be used to create a loss.
What is included in an individual’s Gross Income?
All income from whatever source derived, unless specifically excluded by the Internal Revenue Code.
What is the maximum annual contribution per beneficiary per for the Coverdell Education Savings account?
$2,000
What is the maximum credit amount of the Dependent Care Credit that may be claimed by a taxpayer?
$3,000 for one child and $6,000 for two or more children
There are no personal exemptions on the final return of an estate or trust. True / False
TRUE
