Deck 6 Flashcards Preview

Regulation > Deck 6 > Flashcards

Flashcards in Deck 6 Deck (18):
1

Are auto loans deductible?

Not deductible (consumer loans)

2

Examples of itemized deductions

Personal casualty loss, charitable contributions, unreimbursed business expense of an outside salesperson

3

Keogh plan, define earned income

Net self-employment earnings reduced by the amount of the allowable Keogh deduction and 1/2 the self-employment tax

4

Medical expenses are itemized deductions subject to a _____% AGI floor?

10%

5

Charitable contributions subject to the 50% limit that are not fully deductible in the year made may be:

Carried forward 5 years

6

Moving expenses are what kind of deductions?

Deductions for AGI (not itemized deductions)

7

Example of allowable itemized deduction

real estate tax on personal evidence, Ad valorem tax on personal automobile, Current-year state and city income taxes withheld

8

Contributions of appreciated property are deducted at what value?

FMV

9

A deduction for insurance and utilities costs is not allowed for a:

Personal residence that is not used for rental purposes

10

Rule for deducting medical expenses:

Deductible medical expenses are limited to the amount that exceeds 10% of the taxpayer's adjusted gross income

11

Examples of deductible moving expenses

cost of moving household goods, transportation, and cost of hotel during drive to new home (not breaking the lease)

12

Additional standard deduction amount for being over the age of 65 or blind?

$1,550

13

IRC Section 221

Allows the deduction of student loan interest (above-the-line for AGI) paid on qualified education loans up to a maximum of $2,500 for the tax year; no limitation on the number of years

14

Miscellaneous itemized deductions

Deductible to the extent that such miscellaneous itemized deductions exceed 2% of AGI

15

Home equity indebtedness

Limited to $100,000 on a joint income tax return, but only $50,000 if married filing separately

16

Net investment income =

Investment income - related investment expenses other than "investment interest expenses"

17

No IRA deduction for the:

1) rich and 2) in a retirement plan

18

Maximum IRA deduction equals the lesser of:

$5,500 or the individual's compensation