xxxxxx Flashcards
What is the appropriate tax treatment for fees received for jury duty?
Taxable as other income on page 1 of Form 1040
What is the appropriate tax treatment for interest income on mortgage loan receivable?
Taxable as interest income in Schedule B - Interest and Dividend income
What is the appropriate tax treatment for the fee for the biennial permit to practice as a CPA?
Deductible in Schedule C - Profit or Loss from Business
What is the appropriate tax treatment for costs of attending CPE courses in fulfillment of state board requirements?
Deductible in Schedule C - Profit of Loss from Business
What is the appropriate tax treatment for a loss sustained from nonbusiness bad debt?
Deductible in Schedule D - Capital Gains or Losses
What is the appropriate tax treatment for a loss sustained on the sale of “Small Business Corporation” (Section 1244) stock?
Deductible in Form 4797 - Sale of business property
What is the appropriate tax treatment for taxes paid on land owned by Cole and rented out as a parking lot?
Deductible in Schedule E - Supplemental Income and Loss
What is the appropriate tax treatment for a personal casualty loss sustained in a federally declared disaster area?
Deductible in Schedule A - Itemized deductions, subject to a threshold of 10% of AGI and additional threshold of $100
What is the appropriate tax treatment for a state inheritance tax paid on bequest received?
Not deductible
What is the appropriate tax treatment for One-half of self-employment tax paid with 20XX return filed in April of the following year?
Deductible on page 1 of Form 1040 to arrive at AGI
What is the appropriate tax treatment for insurance premiums paid on Collin’s life?
Not deductible
What type of entity are generally eligible to file an electric Form 990-N (e-Postcard)?
For example which of the following exempt orgs would be eligible to satisfy its annual filing requirement by filing Form 990-N (e-postcard)?
a) Church
b) Private foundation
c) An exempt organization with $20k gross receipts
d) An exempt organization with $3,500 of gross income from an unrelated business
Small exempt organizations whose gross receipts are $50k or less are generally eligible to annually file an electric Form 990-N (e-Postcard) which contains 1) Name, 2) mailing address, 3) EIN
c = correct answer b/c $20k is less than $50k
Churches - don’t have to file annual information return
Private foundation - files Form 990-PF
Exempt org having income of $1k or more from an unrelated business files Form 990-T
If an exempt organization is a charitable trust, then unrelated business income is:
Subject to tax only for the amount of such income in excess of $1k
Which credits are composed of the general business credit?
1) Investment credit
2) Work opportunity credit
3) Alcohol fuels credit
4) Research credit
5) Low income housing credit
6) Enhanced oil recovery credit
7) Disabled access credit
8) Indian employment credit
9) Employer social security credit
10) Orphan drug credit
11) New markets credit
12) Small employer pension plan start-up costs credit
13) Employer-provided child care facilities credit
A general business credit in excess of the limitation amount is carried back 1-year and forward 20 years to offset tax liability in those years
Which of the following types of entities is entitled to the NOL deduction?
a) Partnerships
b) S-Corporations
c) Trusts and estates
d) Not-for-profit organizations
Trusts and estates is the correct answer.
Under certain circumstances NFP orgs can also use the NOL deduction, but it is not as certain as trusts & estates.
