REG 1 Flashcards
(27 cards)
What is a Qualifying Surviving Spouse
Taxpayer’s spouse dies in one of 2 previous years and taxpayer did not re-marry
Taxpayer has child who can be claimed as a dependent
The child lived in the taxpayers home for all of the year
taxpayer paid over half the cost of keeping up the home
the taxpayer could have filed a joint return in the year the spouse dies
What is head of household
a single taxpayer who maintains a separate home for a dependent parent AND paid more than half the cost of maintaining the home.
Qualifications for head of household
must be unmarried on last day of tax year AND maintain a home for a principal residence of a qualifying person for more than half the year
A qualifying person is a dependent child, parent, relative
What is the threshhold for group life insurance to be taxable
50,000
What is a qualifying child?
Child, step child, foster child, half child
Age = 19> or 24> if full time student - ANY AGE if perm. disable
Lives w taxpayer
Child did not provide more than half of their own support
What is a qualifying relative?
CANNOT be a qualifying child
ANY person other than spouse who lived with taxpayer for the WHOLE year
Must have gross income less than $4,300
Taxpayer must provide more than half of total support for the year
interest income on a federal tax refund is
taxable
Alimony is taxable if divorce is before
2019
ONLY includes payments in cash/equivalents - NO child support
interest on state government obligations is
not taxable
Child support is
NOT TAXABLE
withdrawals from deductible traditional IRAs are
taxed as ordinary income
Exceptions to Traditional IRA withdrawal (HIM DEAD TED)
Homebuyer (first time)
Insurance (Medical if unemployed and with 12 consecutive weeks of
unemployment compensation)
Medical expenses in excess of percentage of AGI floor
Disability (permanent or indefinite disability, but not temporary disability)
Education (college tuition, fees, books, etc.)
Adoption or birth of child made within one year from the date of birth or adoption ($5,000 maximum exclusion)
Disaster: Qualified natural disaster ($22,000 maximum per disaster)
Terminal illness or death
Emergency expenses (for personal or family emergency, up to $1,000 per year)
Domestic abuse victims (lesser of $10,000 or 50 percent of retirement account)
punitive damages received in a personal injury case are
fully taxable
Damages for personal injury are
excluded from TI (workers comp)
Municipal bond interest is
excluded from gross income
Limitation of QBI deduction
Lesser of combined QBI deductions or 20% of tI in excess of net cap gain
SSTBs include
health
law
accounting
actuarial science
performing arts
consulting
athletic
financial services
QTB
any business other than SSTB
If FMV < cost basis then
basis depends on future selling price
If sale price > cost basis then basis =
Cost basis
If FMV < sale price < cost basis then basis =
Sales price basis
If sales price < cost basis < FMV basis =
FMV basis
Inherited property basis is
FMV at time of death (usually long-term)
Organizational costs exclude
stock issue costs and commissions paid
