Stock Options
This W-2 box 12 code represents the income picked up by the employee on the exercise date of a NQSO.
What is code V?
When this box is checked on a K-1, it generally means the taxpayer sold his or her ownership interest in the PTP.
What is final K-1?
A WI modification is created since Wisconsin does not allow for this Federal deduction on fixed assets.
What is bonus depreciation?
Taxpayers will use this form to report income or loss from rental real estate, royalties, partnerships, S-Corps, and estates and trusts.
What is Schedule E?
These business deductions are temporarily 100% deductible for 2021 and 2022 on a Federal return.
What are restaurant meals?
The date on which an employee purchases shares of employer stock.
What is the exercise date?
A preparer must do the following when a client receives a PTP K-1 held by an IRA.
What is nothing?
This subtraction is automatically calculated in Lacerte if Federal Form 2441 has been filled out.
What is child/dependent care?
Operate a qualified business out of your home and you will be using this form to calculate your home office expenses.
What is Form 8829?
Taxpayers filing a joint return may claim up to a $600 deduction for this on their 2021 Form 1040 if they do not itemize deductions.
What is a cash charitable donation?
When incentive stock options are exercised, it results in this type of adjustment.
What is AMT?
When calculating gain or loss on the sale of a PTP ownership interest this document will give you the sales proceeds amount.
What is 1099-B?
These types of taxpayers generally will not show a subtraction for Medical insurance premiums on WI Form 1.
What is self-employed?
Self employed individuals, partners with earnings reported on a K-1 and a more than 2% S-Corp shareholder may all claim this adjustment on Schedule 1.
What is the self-employed health insurance deduction?
Effective for any divorce executed after 2018, the TCJA repealed the provision for this which created taxable income to the recipient and a tax deduction for the payer.
What is alimony?
This type of income is created on the exercise date of a NQSO. It represents the excess of the FMV of the stock less the option price.
What is ordinary income?
This type of basis adjustment will cause a tax gain/loss represented on Form 6251.
What is AMT?
A WI capital loss deduction is limited to this amount on a jointly filed return.
What is $500?
This type of income is needed to make an IRA contribution.
What is earned income?
Tax deductions reduce taxable income, while tax credits are subtracted directly from this.
What are taxes owed?
The sum of cash paid, and the compensation added to the W-2 upon exercising a NQSO make up this amount.
What is stock basis?
This form will report the ordinary gain from the sale of the PTP.
What is Form 4797?
The IRS recently blessed this WI election which triggers a subtraction on line 11 Form 1.
What is WI entity-level tax election?
This type of donation can satisfy all or part of your RMD from an IRA with some or all of the distributions being nontaxable.
What is qualified charitable distribution?
MACRS stands for this business-friendly depreciation.
What is Modified Accelerated Cost Recovery System?