Tax Flashcards
(34 cards)
The adoption expense credit limit for 2020 is
$14,300.
An art donation to a local charity, Only materials and expenses are deductible, not __ or ___
artistic contribution or time.
No deduction is allowed for use of property; therefore, the pro-rata overhead would likely not be allowed.
The best source for gathering information about the intent of recent changes in the tax law might be:
Congressional committee Reports
what is the maximum Child Tax Credit Credit for 2020 per child?
$2,000
The classifications of income are __,__,__
active, passive, portfolio. Earned income is a subset of active income. Unearned income may be either a passive or portfolio income
What are the two times the recapture rules for Section 179 apply?
- Business use of an asset drops below 50% for a given year.
- Asset is disposed of before it would have been fully depreciated.
Disability income is taxable to the taxpayer when
someone other than the taxpayer pays the premiums or provides the benefit as in the care of a company who self insures employees for disability losses
The five dependency tests are:
JCSMuG
Joint Filing Test.
Citizenship Test (U.S., Canada or Mexico), and
Support Test,
Member of Household or Family Member Test,
Gross Income Test,
Under current rules, the Section 179 deduction for expensing qualifying business property in 2020 is:
Section 179 deduction is $1,040,000 for 2020.
However, the amount is reduced dollar for dollar for acquisition amounts above $2,590,000 placed into service during 2020.
Child support is deductible TF
False. Child support is not deductible under any circumstances when identified as child support. It is also not taxable to the recipient.
Below the line deductions include all itemized deductions TF
True
TCJA
tax cuts and jobs act
Can you deduct unreimbursed employee business expenses?
No. Post 12/31/17, TCJA eliminated the deduction for unreimbursed employee business expenses.
what is section 1202
Small Business Stock Gains Exclusion.
Allows capital gains from select small business stock to be excluded from federal tax.
Only applies to qualified small business stock acquired after Sept. 27, 2010, that is held for more than five years.
A mid quarter convention generally applies if the total cost basis of business equipment placed in service during the last three months of the tax year exceed ___ of the total basis of all the property placed in service during the year.
40%
Investment interest expense incurred to purchase the mutual fund is deductible if
the investor itemizes
A self-employed person would report their income and deductions relating to his sole proprietorship on ___ of his income tax return
Schedule C
LT cap gains and qualified dividends are not considered investment income unless
the taxpayer makes an election to have these income items taxed at ordinary rates.
Advantages to family limited partnership
- retain interest
- maintain control over assets
- gift 99% to children
- gifts could be made over time to take advantage of valuation discounts and minimize gift tax impact.
When appreciated stock is donated to charity, even if through a CRUT, the charitable deduction in the year of the donation is limited to ___ of the taxpayers AGI
30%
TCJA eliminated the ability to deduct 2% miscellaneous itemized deductions, including ___
attorney’s fees
TCJA eliminated the ability to deduct unreimbursed personal casualty losses, unless
loss is incurred in a federally declared disaster area
When a wash sale occurs, the basis in the remaining shares is the cost basis of those shares plus ___ due to the wash sale rules
any loss that is disallowed
Assets are transferred from a 401k without tax consequence to a divorced spouse if a ___ is obtained
QDRO
