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Regulation - Indiv
Individual Tax - Regulation
| Question | Answer |
|---|---|
| Life insurance | excluded from gross income unless purchased from non-insurance 3rd party |
| Life insurance dividends | not taxable up to premiums paid |
| Stock dividends | not taxable unless preferred valued at FMV on distribution date |
| Tenant improvements | unless in lieu of rent not taxable |
| Alimony | To be deductible must be in cash and must end at recipients death |
| Alimony+child support | if decree includes child support, allocated first to support (non deductible) |
| SSI | excludable unless AGI > 36k (MFJ) taxable at 50%; AGI > 60k (MFJ) taxable at 85% |
| Tips | over $20/mo includable in gross income: reportable the following month (if Dec, taxed NY) |
| Gambling losses | deductible up to winnings (ONLY IF ITEMIZED, not 2%) |
| Advance rent and lease cancellation | taxable immediately; accrual TPs-reduction in A/R reduces current revenue |
| Unemployment | first 2400 is not taxable |
| Illegal activities | gross income - COGS; no deduction allowed for business expenses |
| UNICAP | applies to personal property of manufacturers; not for retailers under $10M; includes only cost of purchasing and holding inventory |
| Tax exempt premiums | non deductible becs proceeds not taxable |
| Business gifts | limited to $25 per yr per recipient |
| Rental loss | passive activity, but deductible with active participation up to $25k unless AGI > $150k |
| Portfolio income | interest and dividends are not passive; cannot be offset against rental loss |
| Section 179 | up to $250k but reduce dollar for dollar for cost over $800k |
| Dependent qualifications | less than $3650 earned income; must provide more than 50% support; relationship test (cousin not qual, unless live with TP) |
| Adoption fees | non deductible, but creditable ($10250) |
| Special assessment tax | non deductible becs increase property value (city sewage improvement levy) |
| Appreciated charitable contribution | must be held at least 12 mo, otherwise reported at cost |
| Charitable contribution limits | 50% of AGI, 30% of AGI for LTCG |
| Charitable carry overs ordering | CY first then carryovers |
| Unreimbursed charitable school exp | $50 month (foreign exchange student hosting) |
| Casualty loss | Damage in an ID event; fire earthquake etc |
| Casualty insurance | non deductible |
| Cost of preparation of will | non deductible |
| Dependent income | excludes social security income |
| Multiple support agreements | To deduct must provide more than 10% |
| Qualifying widower | 2 yrs MFJ; not remarried; >50% household maintenance |
| General business credit | Combo of several credits for uniform rules for CB/CF |
| Child tax credit | 20% of up to 3k per child AGI must be over 15k |
| Filing requirement | >itemized deduction + exemption; for self employed more than $400; for kids more than $1900 |
| Statute of limitations period | begins the day after filing; 2 yrs for refund & AMT; 6 yrs if income understated by 25%; seven yrs for worthless securities write off |
Created by:
baurjan
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