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Flashcards in R-2 Deck (14):

What is not deducted on Schedule C?

One-Half Employment FICA
Self-Employment Healthcare Insurance
Self-Employment Retirement


How many kinds of Individual Retirement Accounts?

Deductible IRA
Non Deductible IRA
Roth IRA
Coverdell Education Savings account


What is non-deductible medical expenses?

Elective surgery
Life insurance
Capital Expenditures
Health club memberships
Personal Hygiene


What is max allowable deduction?

Cash = 50% AGI
FMV Property = 30% AGI


What is American opportunity credit

2500 per student. Multiple students are ok.
The student must be half-time for atleast one academic period during the year.


What is The lifetime Learning Credit?

It is available for unlimited number of years for qualified tuition and related expenses

The credit is equal to 20% of qualified expenses up to $10,000.


What is General Business Credit?

R-2 page 40


What is Earned Income credit?

File a joint return and it is a refundable credit.


What is AMT credit carry forward?

The carry forward is forever.


What are statute of limitations?

Three years from the later of:
the due date of return
the date return is filed.


What is statute for 25% understatement of gross income?

6 years from the later of:
the due date of return
the date return is filed.


What is statute for refund of taxes?

3 years or later from the date the return was filed or two years from the time tax was paid.


What is statute for bad debts?

Seven years from the later of:
the due date of the return or the date the return is filed.


What are the form for refunds?

1139: corporate tax refund
1045: individual tax refund
843: other than income tax refund.