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Flashcards in REG 22 Deck (17):

Are pre-move house hunting costs deductible as moving expenses?
Lodging and travel expenses?

NO pre move costs
Yes (notice it doesn't mean meals_ - lodging and travel
No on meals


Where do moving expenses appear on 1040

Above the line to arrive at AGI


How far away do you have to be from your old residence to deduct moving expenses?

50 miles


How many weeks do you have to be employed after you move to deduct moving expenses?

39 weeks


For Keogh contributions 15% of annual earned income means net-self employment income reduced by? Question 162 on 2nd round

I really blew this as it said "employer's portion of self-employment tax" and I thought there is no employer if u r self employed.

Answer is the contribution limit earned income from the business or $53,000

the earned income must be reduced by
****deductible keough contribution
****1/2 self employment tax
Keough = A - (A*7.65%)-(Keough Contribution)


What are the exceptions to the phaseout of itemized deductions for high income taxpayers?

Medical Expenses
Casualty Losses
Investment Interest


What does it mean when employee business expenses are reimburseable but not substantiated?

Not substAntiated means the employee will include them in income on the W-2 and then take them as an employee business expense subject to the 2 percent floor.


To qualify for childcare credit at least one spouse must either be ________ or ___________

Employed or seeking employment


Does child care credit phase out or down.

YEs down over 15000


Is the child care credit refundable?



American opportunity credit amount

American opportunity credit $2000 first 2000, 25% next 2000, max 2500


Lifetime Learning can it be claimed as same yar as American Opportunity? Does it phase out? How much is it?

20% of first 10,000 of tuition
Yes 110K-130
Over 130 No


What is an AMT preference.

It's categories of m ney you could deduct, but that you have to add back in for AMT

Tax exempt interest from private activity bonds is an example.

not - charitable contributions of appreciated capital gain property is not


Uniform capitalization
What is it
What kind of tangible personal property do you have to produce to be subject to it

Must capitalize direct and a portion of allocable indirect costs if you produce tangible personal property regards f whether tye property is old or used in your trade or businesss.

Applies to retailers as well unless your annual gross receipts for the preceding 3 years do not exceed 10 million.

Produce Personal Property
Retailer with gross receipts (not sales) of over 10 million for preceding 3 years


A business wholly owned by a state or local government is taxed as a what



LLC's can elect to be taxed as what?

Corporations or Partnerships.


What is the flat tax rate for personal service corporations

35%. tricky question, they gave the corporate tax schedule and asked for the liability.

There is no tax schedule it's 35%