Individual
The individual income tax formula.
Gross Income +/- adjustments = AGI - Standard/Itemized Deduction = TI b4 QBI - QBI deduction = Taxable Income
The basis of stock that was gifted at FMV of 300 with an original basis of 400. Stock was sold for 350 two days after the gift.
What is 350?
Deadline for accrued amounts paid in the following year to be deductible in the current year 1120?
What is 3 1/2 months after year-end?
Name an instance when a contingent fee is allowed.
IRS examination of an original tax return, claim for refund of interest/penalties, or judicial proceeding arising under the IRC
The rule governing contract acceptance.
What is the mailbox rule?
The date the treatment of alimony changed.
What is December 31, 2018?
Treatment of capital losses for inividuals.
What is a 3,000 maximum deduction with no carryback but indefinite carryforwards?
An NOL created in tax year 2020 has this treatment.
What is 5-year carryback against 100% of TI and indefinite carryforward against 80% of TI?
What is the more-likely-than-not standard?
Fraud in the Inducement makes a contract:
The filing status of a widow in Year 4, whose spouse died in Year 1. She maintains the home of a dependent child who lives with her year-round.
What is Head of Household?
Capital loss for this transaction: 100 shares bought for $500 on March 1, Y1. 50 shares sold for $3 a share on November 5, Y2. 25 shares repurchased on December 2, Y2.
What is $50 dollars? (half of loss disallowed and added to new basis)
An S-corp lost their status on Feb. 15, Year 2. They can reelect in this tax year:
What is Year 7? (beginning of 5th tax year following termination)
This entity has the power to license or revoke a license for a tax practitioner.
What is the state board of accountancy in which the practitioner practices?
Ben announces he is the agent of Declan Hill in front of Emily O'dell. Declan chuckles but says nothing, paying more attention to the NHL game. Ben later contacts with O'dell for Declan to be a guest speaker at each Immersion Week. Is Declan bound to the contract?
Yes, Declan is bound by agency by estoppel.
Prescription Glasses: 500
Disability Insurance: 1000
Necessary surgery: 2000
Cosmetic surgery: 5000
Reimbursements: 1500
What is medical expenses of $1000 before AGI limitation?
The MACRS convention for $599 of 5-year property placed in service on January 1 and $401 of 15-year property placed in service on October 5.
What is the mid-quarter convention?
How do nondeductible expenses affect an S-corp's AAA balance?
What is they reduce the AAA balance?
The appellate court for cases initially tried under the US Court of Federal Claims?
What is the US Circuit Court of Appeals?
On her way to a client site on 3/14, Sonali negligently runs a red light to make an important meeting discussing internal controls. She hits Danielle Villarreal, who is transporting Boo to the Vet. Boo is seriously injured. Sonali's senior manager instructed her to make the meeting by any means necessary due to Sonali's expertise in internal controls. Will Deloitte be liable, and why?
Deloitte is liable under Respondeat Superior. Although the running of the light is intentional, the SM's instructions ultimately authorized the reckless behavior.
A man with 5 children with earned income of $120,000 spent 8,000 on child care this year and received this amount for the care credit.
What is 1,200? (20% of 6,000)
A business added an elevator to a nonresidential building. How is this treated for Sec 179 depreciation?
What is disallowed?
Name the separately stated gain and the gain included in OBI for partnerships and S-corps.
Sec 1231 gain is separately stated; Sec 1245 is included in OBI.
Explain the % (no maximums needed) of both the Failure to File penalty and Failure to Pay penalty when both are assessed on a taxpayer.
Failure to File: 5% of the amount of tax due for each month the return is late reduced by the Failure to Pay penalty.
Failure to Pay: 0.5% of the tax due for each month the tax is unpaid.
Ben has 5 creditors: Declan ($5,000 secured), Gerges ($10,000 unsecured), Meredith ($3,000 unsecured), Danielle ($6,000 secured), and James ($5,000 unsecured). Meredith wishes to petition Ben into involuntary bankruptcy.
Meredith will be unsuccessful since the aggregate of unsecured debt is less than $18,600.