TAX PLANNING
The QBI deduction is generally calculated under this code section
IRC §199A
This election form is used to become an S Corporation
Form 2553
The primary tax return filed by a partnership
Form 1065
The tax form used to report itemized deductions
Schedule A
The fiduciary charged with administering an estate
Executor
The maximum QBI deduction percentage
20%
S Corporation income generally passes through to these
Shareholders
The schedule reports each partner's share of income and deductions
Schedule K-1
The tax attribute that carries forward when capital losses exceed capital gains
Carryover
This trust agreement requires all income to be distributed annually and does not allow charitable contributions
Simple Trust
This method may help reduce estimated tax penalties for clients with seasonal income
Annualized Income Installment Method
What must shareholder-employees receive before taking large distributions
Reasonable Compensation
Partnership liabilities generally increase this tax attribute of a partner
Basis
The tax regime designed to ensure certain taxpayers pay a minimum amount of tax
AMT
This tax concept limits the amount of estate or trust income that can be carried out and taxed to beneficiaries
Distributable Net Income, or DNI
This strategy involves realizing investment losses to offset capital gains
Harvesting
True or False: An S Corporation may have nonresident alien shareholders
False
The code section limiting partner losses to their partnership basis
704d
The deduction limitation that caps deductible capital losses against ordinary income
Income earned by a decedent but received after death
IRD
This calculation method may reduce estimated tax penalties for taxpayers with uneven income throughout the year
Annualization
This compensation requirement applies to shareholder-employees
Reasonable Compensation
The term for the partner's adjusted investment used to determine gain, loss, and deductibility of losses
Outside Basis
The tax code section that allows taxpayers to exclude gain from the sale of a principal residence
IRC §121
The tax brackets that trusts reach much faster than individuals
Compressed