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REG > R2 > Flashcards

R2 Flashcards

1
Q

Educator expense - Indiv

A

adj/deduction to arrive at AGI

eligible educator deduct up to $250 of qualified expense paid (k-12 teacher, instructor, counselor, principal or aid in school for at least 900 hours)

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2
Q

Regular IRA contributions

A

adj/deduction to arrive at AGI

GR :max deduction is lesser of $5,000 or individuals compensation (over 50 allowed addt’l contrib of $1000)
Exception: contrib not deductible if Excessive AGI & active participant in another qualified plan (test husband & wife separately unless super rich MAGI of 173-183K)
w/d taxable as ord income

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3
Q

ROTH IRA

A

adj/deduction to arrive at AGI

contrib = nondeduct
earnings accum tax free
distrib = tax free
contrib limit of $5,000S/$10,000MFJ (combined with all IRAs)
Phase-out
110-125K S / 173-183K M / 0-10K MFS
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4
Q

Nondeductible IRA

A

adj/deduction to arrive at AGI

contrib limit lesser of
1. $5,000S /10,000MFJ
2. indiv compensation
3. limit not contrib to other IRAs
Distrib
earnings = taxable
prin contrib = nontaxable
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5
Q

Coverdell Education Savings Accounts

A

contrib = nondeduct
max contrib per beneficiary = $2,000
distrib = tax free if used for qualifying education expenses
must be distributed by age 30,can contrib up until age 18
limit not combined w/other IRAs
Phase out: 95-110K S / 190-220K MFJ

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6
Q

Student loan interest

A

adj/deduction to arrive at AGI

limited to $2,500
Phase out: $60-75K S / $125-155 MFJ

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7
Q

Tuition and Fees Deduction

A

adj/deduction to arrive at AGI

max $4,000
eliminated at higher AGI levels $65-80K S / $130-160K MFJ
exp can’t also be used for hope credit, lifetime learning credit, non-taxable savings accounts

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8
Q

Health Savings Accounts

A

adj/deduction to arrive at AGI

must be combined w/ high-deductible health insur
make pretax contrib up to $3,100 ($6,250 family) for health care costs

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9
Q

Moving expenses

A

adj/deduction to arrive at AGI

new workplace is 50 miles farther from old house than old workplace
39 week stay, self employed 78 week stay
direct moving costs of self and family only - travel, lodging, tolls, parking, transportation of people and goods
NOT - meals, pre-move house hunting, exp of breaking lease, temp live exp

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10
Q

Self employment tax

A

adj/deduction to arrive at AGI

50% SE FICA tax

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11
Q

Self Employed health insurance

A

adj/deduction to arrive at AGI

100% deductible

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12
Q

Keogh Profit Sharing Plans

A

adj/deduction to arrive at AGI

max annual deduct limited to lesser of 25% net earnings or $50,000
max annual contrib limited to lesser of $50,000 or 100% of net earnings (use 20% SE net income)

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13
Q

Early interest withdrawal penalty

A

adj/deduction to arrive at AGI

forfeited interest on CDs

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14
Q

Alimony

A

adj/deduction to arrive at AGI

deductible if paid due to written divorce agreement, in cash
income to spouse, child support is non-ded (apply to child support 1st)
prop settlement is non-taxable/nondeduct

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15
Q

Medical expenses

A

Itemized deduction 7.5% AGI

you, spouse, dependent (no gross income test/joint return)

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16
Q

State, Local, Foreign taxes

A

Itemized deduction

real estate obligation to pay and taxes pd under protest

17
Q

Nondeductible taxes

FIB

A

Federal
Inheritance taxes for states
Business and rental property taxes

18
Q

Home mortgage interest

A

Itemized deduction

Acquisition indebtedness up to $1,000,000 on 1st and 2nd home
Home equity indebtedness max $100,000 for any purpose, limited to dif between FMV and original debt

19
Q

Investment interest expense

A

Itemized deduction

limited to net taxable investment income, indef carryforward
nondeductible = personal and tax-free bond investment interest

20
Q

Prepaid interest

A

Itemized deduction

allocated to period incurred

21
Q

Educational loan interest

A

Itemized deduction

max $2,500

22
Q

Charitable contributions

A

Itemized deduction

limited 50% AGI cash, 30% LT cap gain prop
5 year carryover
prop @ lesser of basis of FMV

23
Q

Casualty & Theft Loss

A

Itemized deduction 10% AGI

lesser of lost cost/adj basis or decrease in FMV

Loss
(insurance recovery)
= tax payer loss
(100)
=eligible loss
(10% AGI)
= deductible loss

sudden, swift, unexpected

24
Q

Miscellaneous itemized deductions

A

Itemized deduction 2% AGI

unreimbursed bus exp
investor exp
educational exp
tax prep

25
Q

Other miscellaneous deductions

A

Itemized deduction no 2% limit

gambling loss cannot exceed income, only claim loss if itemize

26
Q

Refundable tax credits - indiv

A 
child tax credit
earned income credit
withholding taxes (W-2)
excess social security paid
LT unused minimum tax credit
American Opportunity Credit
Adoption Credit
27
Q

Child and dependent care credit

A

20% to 35% of eligible expenses
one child $3,000
two or more $6,000

REG (2 decks)

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