CFP Tax

Question 1

MFS Capital Loss

Answer 1

$1,500

Question 2

If a partner brings property into the partnership, use FMV or basis?

Answer 2

Must use tax basis (this is the limit for losses as well)

Question 3

AMT Formula

Answer 3

Regular taxable income
AMTI
AMT Base
Gross AMT
Tentative Minimum Tax
AMT

Question 4

Regular taxable income to AMTI

Answer 4

Add: Tax preference items
Add: Standard deduction
Add/Subtract: AMT adjustments and tax preference items

Question 5

AMTI to AMT base

Answer 5

Less: Exemption Amount

Question 6

AMT Base to Gross AMT

Answer 6

Times AMT tax rate

Question 7

Gross AMT tax to Tentative minimum tax

Answer 7

Less: AMT foreign tax credit

Question 8

TMT to AMT

Answer 8

Less: Regular tax liability

Question 9

Penalty for a frivolous return

Answer 9

$5,000

Question 10

Penalty for negligence

Answer 10

20% of amount of deficiency

Question 11

Penalty for fraud

Answer 11

75% penalty

Question 12

Failure to file

Answer 12

5% of the unpaid taxes for each month up to 25%
Minimum $435 penalty if more than 60 days

Question 13

Failure to pay

Answer 13

0.5% per month up to 25%

Question 14

Failure to furnish a copy to taxpayer

Answer 14

$50

Question 15

Failure to sign return

Answer 15

$50

Question 16

Failure to furnish ID number

Answer 16

$50

Question 17

Failure to retain copy or list

Answer 17

$50

Question 18

Failure to file correct info

Answer 18

$50

Question 19

Failure to determine eligibility for benefits

Answer 19

$545

Question 20

Form 5498

Answer 20

Total annual contributions to IRA accounts

Question 21

NII Threshold MFJ

Answer 21

$250,000

Question 22

NII Threshold Single

Answer 22

$200,000

Question 23

NII Threshold MFS

Answer 23

$125,000

Question 24

NII Threshold HoH

Answer 24

$200,000

Question 25

NII Threshold Widower

Answer 25

$250,000

Question 26

Tax Exclusions

Answer 26

M uni bond interest A ccident and health plans ER premiums F ringe I nheritance & gift A ccident and health amount received S cholarships P ersonal residence gains A doption assistance D eath benefit D ependent care assistance E ducational assistance program D ebt discharged M eals and lodings I nterest on education bonds C ompensatory damages S upport payments received

Question 27

Adoption Assistance Exclusion

Answer 27

up to $14,890

Question 28

Educational Assistance Program

Answer 28

up to $5,250

Question 29

FBAR Must be submitted

Answer 29

when value of all foreign accounts (FFA) exceeds $10,000 at ANY TIME during the calendar year reported (finCEN Form 114)

Question 30

FBAR form

Answer 30

FinCEN Form 114

Question 31

FATCA form

Answer 31

Form 8938

Question 32

FATCA requirements US residents

Answer 32

MFJ:100,000 at end of year; 150,000 at any time Single: 50,000 at end of year; 75,000 at any time

Question 33

FATCA requirements non US

Answer 33

MFJ: 200,000 at end of year; 300,000 at any time Single: 400,000 at end of year; 600,000 at any time

Question 34

Qualified plan NOT exceptions to 10% penalty

Answer 34

Education. health insurance while unemployed & first time home purchase

Question 35

SIMPLE IRA distributions

Answer 35

25% penalty in first 2 years

Question 36

Charitable Carry Forward

Answer 36

5 years

Question 37

Section 121 Exclusion: if home is transferred as a result of divorce

Answer 37

Divorced spouse ownership period is ADDED to the taxpayer's period of ownership

Question 38

Schedule H

Answer 38

Household employment taxes, when employee paid at least $2,300 or all cash $1,000+ during any quarter

Question 39

Mileage Deduction

Answer 39

$0.14 per mile

Question 40

What can be deducted when contributing charitable services?

Answer 40

Unreimbursed expenses (transportation, lodging, meals)

Question 41

What does not qualify for Section 179 treatment?

Answer 41

Property, air conditioning/heating

Question 42

Section 179 Maximum

Answer 42

$1,080,000

Question 43

Section 179 Expense Limitation

Answer 43

Up to the firm's net profit

Question 44

Max depreciation on Section 179

Answer 44

Expense up to net income and choose MACRS for remainder (can use year 1 MACRS as additional depreciation)

Question 45

Need written acknowledgment from charity for charitable contribution deduction

Answer 45

$250

Question 46

Child & Dependent Care Credit

Answer 46

To cover childcare expenses for children under 13, Nonrefundable, minimum credit is 20% of qualified expenses w/ AGI over $45,000

Question 47

Child Tax Credit

Answer 47

Dependent under 17, max credit is $2,000 per person (AGI under $200k single, $400k MFJ); additional credit can be partially refundable ($1,500)

Question 48

QBID

Answer 48

lesser of 20% of QBI or 20% of taxable income (taxable income = AGI - capital gains - standard deduction)