| Question |
 |
|
| Answer |
|
|
| Personal Property tax can be taken on what types of property? |
Houses, cars, boats, etc. |
| How much does the value of a gift have to be over before a gift tax is taken by the Federal government? |
Over $10,000 |
| Municipal bond interest is usually... |
tax-exempt |
| If you are self-employed, you will be issued a penalty if you... |
pay less than 90% of last year's tax liability and if you fail to pay the quarterly taxes on or before the due date for filing taxes. |
| An IRA earns money that is.... |
tax-deferred |
| A person would want to use a 1040 tax return form if... |
he or she takes many itemized tax deductions |
| What is a tax credit subtracted from? |
taxes owed |
| What is a tax deduction subtracted from? |
taxable income |
| Money that is donated to charities can be claimed as an itemized tax deduction up to what percent of person's income |
20% |
| Exclusions are not included in... |
gross income |
| What are the tax planning strategies to minimize future income tax? |
Consumer spending, Investment planning, Retirement planning |
| How can consumer spending be planned in order to reduce taxes? |
Mortgages, business tools, travel expenses, and some educational expenses can be tax-exempt or you can claim tax deductions for those expenses. If you record these expenses accurately you can reduce your taxes. |
| How can investments help you reduce your taxes? |
Municipal bond interest is tax-exempt and therefore you don't have to claim it on your taxable income and therefore reducing your total tax liability. |
| What are some ways to have a successful audit interview? |
Be prepared with only the records needed in an organized system, be confident in your answers with clear and concise answers, know exactly what parts of the return are in question |
| How can you be well-prepared for this test on Friday other than studying this study stack? |
Study the vocabulary stack for Ch. 5 as well. |
MedTemCP5 Word+Pics
