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Flashcards in Individual Taxation Deck (67)
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62

Adoption expenses - Are they deductible?

NO; they are not deductible. However tax benefits are available through the adoption CREDIT.

63

Describe alimony recapture.

2nd Year: (3rd year - 2nd year - $15;000)

1st Year:
1st Year Alimony Paid
- Avg alimony paid in 2nd & 3rd years
- $15;000
- Recapture from 2nd year
=1st Year Alimony Recapture

Total Recapture = 1st Year Recapture + 2nd Year
Recapture

64

How are Net Operating Losses (NOLs) utilized?

Can be carried back 2 years

If any left; can be carried forward 20 years.

65

Which IRA contributions are deductible?

Traditional IRA = deductible

Roth IRA = not deductible

66

When can a couple file married filing jointly?

They must be married at the end of the year.

If one spouse dies; they must be married at the end of the year.

67

What are the requirements for filing as Head of Household?

Must have a dependent child

Must provide more than 50% of the child's support

Must live with them more than 50% of the year

68

What are the requirements for filing as qualifying widower?

Must have a dependent child.

Essentially gets MFJ status for the year of death + 2 tax years