Rates & Amounts
With the many changes in the 2017 Tax Cuts and Jobs Act, the number of income tax brackets changed. (True/False)
What is false
Identify which of the following is not a type of depreciation: MACRS, SL, ADS, SLD.
What is SLD?
All farmers fill out this tax form yearly.
What is Schedule F?
The new tax law allows deducting charitable contributions (T/F).
What is true?
The name of the agency overseeing taxes - IRS.
What is the Internal Revenue Service?
The new flat taxable rate is changed to 21%
What is the corporate tax rate?
The new tax law classifies new farm equipment as MACRS property as: a) 5 yr, b) 7 yr, c) 10 yr
What is a) 5 yr?
Farmers who use accrual accounting cannot use Schedule F (T or F).
What is false?
The 2018 maximum dollars for annual gift tax exclusion.
What is $15,000?
The name of the new tax law TCJA.
What is Tax Cuts & Jobs Act?
For 2018, state the maximum contribution amount for an individual for an IRA.
What is $5,500.
This type of depreciation will be phased out from 2022 to 2027.
What is bonus depreciation?
The actual name of Schedule F is: 1)Farm Transactions, b) Profit and Loss From Farming, c) Income and Expenses From Farming, d) Farm Taxes
What is b) Profit and Loss From Farming?
The new tax bill suspended several items including: a) health savings accounts, b) home mortgage interest, c) personal exemptions, d) living expenses for members of Congress, e) a & b, f) c & d
What is f) c & d ?
FMV refers to step up basis in estates.
What is Fair Market Value?
Health Savings Accounts 2018 maximum contributions: a) family - $6,900, b) family - $7,000, c) single - $3,450, d) single - $3,500, e) a & c, f) b & d
What is e (a & c)?
In 2018, the amount of Section 179, expensing deduction was: a) $500,000, b) $510,000, c) $1,000,000, d) $1,020,000
What is c) $1,000,000?
Schedule F consists of 3 parts. Name Part II or an item that goes in Part II.
What is expenses (truck expenses, chemicals, custom hire, depreciation, Section 179, feed, fertilizer, fuel, insurance, interest, etc.)?
Each person is allowed an individual lifetime estate tax exemption amount, in 2018 the amount was: a) $5,490,000, b) $11,180,000, c) $2,540,000, d) $14,650,000
What is b) $11,180,000?
MFJ refers to a method of filing taxes.
What is Married Filing Jointly?
There are multiple individual tax rates, identify the low and the high for 2018.
What is 10% and 37%?
The new law allows which type of property to be eligible for like-kind exchanges.
What is real property?
Schedule F consists of 3 part. Name Part I or an item that goes in it.
What is farm income (livestock sales, sale of grain, coop distributions, USDA ag program payments, CCC loans, crop insurance proceeds, custom hire work)
One of the new tax law changes allows distributions from 529 plans to be used to pay up to a total of $10,000 of tuition per beneficiary each year of elementary or secondary (K-12) for: a) public school, b) private school, c) home school d) a & b, e) b & c, f) all the above
What is d) a & b ?
MACRS refers to a depreciation method.
What is Modified Accelerated Cost Recovery System?