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CPA Regulation > R-1 > Flashcards

Flashcards in R-1 Deck (16):
1

What does Qualifying widow with Dependent Child?

1) Status two years after spouse's death

2) Principal residence for dependent child for whole taxable year.

2

What is head of household?

Individual maintains more than half the taxable year principal residence for
1) Dependent son or daughter
2) Parents
3) Dependent relatives

3

What is age limit for child?

Under 19 or 24 for college going student

4

How much educational expenses exclude for employer?

Upto $5,250. Applies to both undergrad and grad school.

5

What is taxable interest income?

All interest income is taxable until its tax exempt

6

Where is business income shown?

Schedule C

7

What is net taxable loss carryback & carryforward?

2-year carry back and 20- year carry forward.

8

What are uniform capitalization rules?

Real or tangible property owned
receipts of previous 3 years not exceeding 10 million annually
No period expenses like marketing and R&D costs.

9

Where does farming income go?

Schedule F

10

What is Roth IRA?

All benefits are non-taxable.

11

What is the penalty for premature withdrawal?

10%

12

What are the exceptions to penalties?

Home buyer
Insurance
Medical expenses
Disability
Education
Death

13

What is schedule E used?

Rental real estate
Royalties
Partnerships and LLCs
S-Corp
Estates
Trusts

14

When is rental excluded?

Less than 15 days of rent. Rental use expenses are deductible only to the extent of rental income.

15

What is Non-deductible Passive Activity losses?

carry forward without any time limit. If unused, they become fully tax deductible in the year of the property disposal.

16

Are punitive damages taxable?

Punitive damages are fully taxable as ordinary income.