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Flashcards in Module 35 Notes Deck (21):
1

What is Schedule B for?

Interest and dividend income

2

What is Schedule C for?

Income from sole proprietor

3

What is Schedule D for?

Capital gains and capital losses

4

What is Schedule E for?

Supplemental income

Examples: distributive share of partnership or S corporation income, rents and royalties

5

What is Schedule F for?

Farm income

6

What is Schedule A for?

Itemized Deductions

7

What form is used to file an individual's tax extension?

Form 4868

8

Maximum social Security benefits that are taxable is.....

85% of what the taxpayer receives

9

______ stock options are offered to all employees with no discrimination, while ______ stock options are only offered to certain key employees

Incentive

nonqualified

10

Under an incentive stock option when do you pay taxes

Only when you sell the stock

11

Under a nonqualified stock option when do you pay taxes

Twice:

1) when you exercise the option and
2) when you sell the stock

12

Under an incentive stock option when you pay taxes when you sell the stock how is income treated

As a long-term capital gain

13

Under a nonqualified stock option how do you treat income when you exercise the option

As ordinary income to the extent that the fair market value exceeds the option price

14

Under a nonqualified stock option how do you treat income when you sell the stock

As a capital gain

15

T/F

Country nonqualified stock option the option is included in income when received

TRUE

The option is included in income when received if it has a determinable FMV

16

Under an incentive stock option what is the employees basis in the stock

The option price at the date the employee exercise the option

17

Under a nonqualified stock option what is the employees basis in the stock

The fair market value at the date the employee exercises the option

18

What schedule is self employment tax calculated on?

Schedule SE

19

What form should be used to file a refund claim for taxes other than income taxes

Form 843

20

What form should be used by a corporation to file for a tentative adjustment or refund of taxes when an over payment of taxes for prior-year results from the carry-back of the current years NOL or net capital loss

Form 1139

21

What form should be used by an individual to file for a tentative adjustment or refund of taxes when an over payment of taxes for prior-year results from the carry-back of the current years NOL or net capital loss

Form 1045