Flashcards in R1 - Individual Taxation - Gross Income Deck (13):
What are the two criteria that must be met in order for a gain to be taxable?
Realized and recognized
How much of an employer's educational expenses are excludable from employee income?
$5,250 for both undergraduate and graduate
What is the limit for merchandise discounts? Service discounts?
Merchandise discounts are limited to the employer's gross profit percentage (i.e. only down to cost) and service discounts are limited to 20%
What is the kiddie tax exclusion graduated table amount?
Under $1,000 = 0%
$1,001 - $2,000 = child's rate
$2,001 + = parent's rate
What is the carryback/forward time periods for a net operating loss?
2-year carryback and 20-year carryforward
For long term contracts, what is the default method required to be used?
What are the exceptions to the IRA early withdrawal 10% penalty tax?
Home buyer (1st time) - $10K max
Medical expenses in excess of 10% of AGI
Disability - not temporary
What is the phase-out amount for the Mom and Pop PAL exception?
$25,000 and is reduced by 50% of the excess over an AGI of $100,000 (gone @ $150,000)
The Uniform Capitalization Rules of Code Sec. 263A apply to retailers whose average gross receipts for the preceding three years exceed what amount?
What amount of group life insurance premiums are not included in wages?
The premiums on a policy up to $50,000; any premiums on a policy over $50,001 are included in wages
Is a limited partner allowed to take a loss?
T/F: Guaranteed payments are subject to self-employment taxes