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Flashcards in Taxes: Other Itemized Deck (11)
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1

Taxes:
Other Itemized
Charity
LTCG property

Charity
- public or private. NOT Political Organizations.
Contribution of cash or property, but NOT services
- reduced by any benefit received by taxpayer
LTCG property:
- reduce by FMV
- limited to 30% AGI
- can be more if elect FMV-gain
- if more than $5,000, and donee org sells in 3 years of donation, then recapture to extent donation exceeded basis of property

2

Taxes:
Other Itemized
Charity
All other property

All other property:
- deduction = FMV - OI/STCG if sold
- depreciation recapture = ordinary income
- if FMV

3

Taxes:
Other Itemized
Charity
Written Record

Written Record
- no deduction if $250 or more and no written acknowledgement of amount and purpose
- not cash unless check, card, or written statement
- if >$500, description of property required
- appraisal if $5,000 or more
- if >$500,000, appraisal must be attached to return

4

Taxes:
Other Itemized
Charity
Autos

Autos
- if auto, and donee sells, deduction limited to gross sales price and must give donor substantiation of amount

5

Taxes:
Other Itemized
Charity
Limitations

Limitations
- cash & property limited to 50% AGI
- capital gain limited to 30% AGI for public
- capital gain limited to 20% AGI for private
- carryforward 5 years

6

Taxes:
Other Itemized
Casualty Losses

Casualty Losses
- deductible if loss > ($100 + 10% AGI)
- except if complete destruction
- deducted in year occured
- basis - insurance proceeds

7

Taxes:
Other Itemized
Casualty Losses
Calculation

Casualty Losses
Calculation:
Lower of decline in FMV or adjusted basis of property
- $100 per casualty
- 10% AGI
= Casualty Loss Deduction

8

Taxes:
Other Itemized
Casualty Losses
Other

Other
- if gain, then capital gains and losses netted, before 10% AGI
- net casualty gain = capital gain
- aprasial fees are 2% AGI Miscellaneous deduction

9

Taxes:
Other Itemized
Miscellaneous subject to 2% Floor

Miscellaneous subject to 2% Floor
- all deductions - 2% AGI
List
1. business expense not reimbursed under accountable plan
2. Investment Expenses (not royalty or rental)
3. Tax return preparation
4. Home office expenses of employee
5. Hobby expenses

10

Taxes:
Other Itemized
Miscellaneous NOT subject to 2% Floor

Miscellaneous NOT subject to 2% Floor
1. Repayments included under claim of right docterine
2. Remaining basis of terminated annuity
3. Gambling losses to extent of winnings
4. Others

11

Taxes:
Other Itemized
Phaseout

Phaseout
- reduce by 3% in excess of phaseout
- not subject to phaseout: medical, investment interest expense, casualty and theft, and gambling losses

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