What is definition of highly compensated employee?
100
Form 1041
What is form used to calculate estate tax due on gross income over $600 or more?
100
Form 1065
What is annual return used to report gains, losses, credits, deductions etc for partnership. Partnership generally does not pay any taxes, passes thru to partners on Sch K-1
100
Sole proprietor, partnership, qualified joint venture
What are 3 ways to form your business? Also include Corporations (both C Corp and S Corp) and LLC
100
Cash, Accural & Hybrid
What are methods of accounting. Cash is most common for sole proprietors. Corp w gross receipts > $5mil are required to use accrual.
200
Smaller of $51,000 or 25% of employee compensation
What is maximum SEP contribution?
200
Testamentary Trust
What is a trust created at death?
200
4th day of the fourth month
What is due date of partnership return. For calendar year, 4/15.
200
Files Schedule C
What is sole proprietor or qualified joint venture who elects to file as sole proprietor. QJV is husband/wife who file mfj, both materially participate, co-own and elect. Simplifies taxes
200
Employment, Personal Property, Real Estate, etc
What are types of deductible business taxes paid? Also excise taxes & heavy & highway taxes ( form2290)
300
10/15
What is the due date for setting up and making contributions for SEP plans?
300
D.N.I.
What is Distributable Net Income? This calculation is done each year to determine the maximum amount of income distributions for which a dist deduction is available
300
Basis, at-risk, passive
What are the 3 potential limitations on partnership losses, applied in the above order?
300
Social Security & Medicare Taxes
What is SE Tax. Filed by self employed. Provides for their retirement benefits, disability benefits, survivor benefits and hospital insurance (medicare)
300
Annual business expenses exceeds business income
What is a Net Operating Loss (NOL). Carryback NOL 2 years prior to NOL, 20 years forward. Exceptions: Casualty Losses, 3 years. Farming Loss, 5 years. Spec Liability, 10 years.
400
$2,500 and $5,500
What is catch up contributions for SEP and qualified plans respectively?
400
3 years
What is income averaging for farmers?
400
Ordinary Income Treatment
What is the character of gain that a partner recognizes when distributions occur from unrealized receivables, inventory or depreciation recapture?
400
Direct Sellers and Real Estate Agents are examples
What is statutory nonemployees? Treat as self employed
400
Real & Personal
What are the 2 types of depreciable property. Example of Real: Buildings, Rental Propertys. Example of Personal: Equipment, Cars, Computers.
500
Form 5500
What is annual return due for retirement plans?
500
Only allowed on decedents final return
What is net operating loss and capital loss carryovers? If cant all be used, its gone forever, can not carry to estate.
500
Guaranteed Payments
What is payments to partners without regard to partnership income?
500
Form W-4, Form I-9
What are forms needed when you hire an employee. W-4 is used to calculate how much tax to take out of your paycheck. I-9 establishes legal right to work in US
500
FMV on date of death
What is basis of inherited capital asset? A step-up in basis occurs when the FMV is greater than the decendents basis. Gains on inherited property are always Long-term.