ITX - 43B Flashcards Preview

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Flashcards in ITX - 43B Deck (37)
1

Taxed as/rate: Life insurance dividends

Not taxable

2

Taxed as/rate: Qualified dividends

10% & 15% = 0%
25%, 28%, 32%, 35% = 15%
39.6% = 20%

3

Taxed as/rate: Money market mutual fund dividends

Ordinary income

4

Taxed as/rate: S-corp dividends

Ordinary income

5

Taxed as/rate: REIT dividends

Ordinary income

6

Taxed as/rate: MF distributions of STCGs and interest

Ordinary income

7

Taxed as/rate: Preferred stock dividends (most)

Ordinary income

8

Taxed as/rate: Capital gains - LT (other than collectibles and unrecaptured real estate depreciation)

10% & 15% = 0%
25%, 28%, 32%, 35% = 15%
39.6% = 20%

9

Taxed as/rate: Capital gains - ST

Ordinary income

10

Taxed as/rate: Installment sale (seller)

Each payment is part capital gain, part return of basis, and part interest (ordinary income)

11

Taxed as/rate: Private annuities

Each payment is part capital gain, part return of basis, and part interest (ordinary income)

12

Taxed as/rate: Commercial annuities - withdrawals

Ordinary income on earnings, plus 10% penalty if under age 59 1/2

13

Taxed as/rate: Commercial annuities - annuitized payments

Part return of basis and part ordinary income

14

Taxed as/rate: Life insurance withdrawals (non-MEC)

Ordinary income once basis has been exceeded

15

Taxed as/rate: Life insurance loans (non-MEC)

Not taxable

16

Taxed as/rate: Life insurance withdrawals & loans (MEC)

Ordinary income on earnings, plus 10% penalty if under age 59 1/2

17

Taxed as/rate: DI insurance benefits (group)

Ordinary income if premiums were pre-tax

18

Taxed as/rate: US government bond interest

Ordinary income

19

Taxed as/rate: TIPS

Ordinary income on both the interest and the increase in principal each year

20

Taxed as/rate: GNMA, FNMA, FHLMC interest

Ordinary income

21

Taxed as/rate: Municipal bond interest

Federal tax exempt if public purpose; state and local tax exempt if resident

22

Taxed as/rate: Zero coupon bond interest

Ordinary income on imputed interest

23

Taxed as/rate: Passive losses (LP & rental)

Deduction limited to passive income

24

Taxed as/rate: Alimony

Ordinary income to the receiver

25

Taxed as/rate: Excess alimony

Recaptured as ordinary income in 3rd post-separation year

26

Taxed as/rate: Social Security Income

Up to 85% of SS income may be taxed as ordinary income if combined (provisional) income exceeds the threshold

27

Taxed as/rate: Restricted stock

Ordinary (W-2) income at maturity/exercise (no longer substantial risk of forfeiture on restricted stock

28

Taxed as/rate: Phantom stock

Ordinary (W-2) income at maturity/exercise (no longer substantial risk of forfeiture on restricted stock

29

Taxed as/rate: SARs

Ordinary (W-2) income at maturity/exercise (no longer substantial risk of forfeiture on restricted stock

30

Taxed as/rate: Life Insurance Death Benefit

Not taxable unless transferred for value

31

Taxed as/rate: ISO - At grant

no tax

32

Taxed as/rate: ISO - At exercise

no tax

33

Taxed as/rate: ISO - At sale if qualifying disposition

LTCG

34

Taxed as/rate: ISO - At sale if disqualifying disposition

ordinary income on bargain element
rest is LT or ST capital gain based on holding period from exercise

35

Taxed as/rate: NQSO - At grant

no tax

36

Taxed as/rate: NQSO - At exercise

ordinary (W-2) income on bargain element (basis becomes full FMV on date of exercise)

37

Taxed as/rate: NQSO - At sale

LT or ST capital gain based on holding period from exercise