Studied by 0 people
Looks like no one added any tags here yet for you.
What are the three categories for AGI?
Directly related to business activities
Indirectly related to business activities
Subsidizing specific activities
Profit - motivated activities that are deductions for AGI are classified as?
Business activities
Investment activities
Trade or business expenses MUST BE
Directly connected to business activity
Ordinary and necessary for the activity
Reasonable in amount (not extravagent)
Schedule C claimes ______ and _______ for ______ and ____
revenues and expenses for trade and business
What is the tax basis limitation?
Losses may not exceed an investor’s amount at risk in the activity
At-risk limitation is the same as tax-basis except…
types of debt that increase taxpayer’s at risk amount are more restrictive
A limited partner and rental property are examples of…
passive activities
What is the exception to the passive activity limitation law?
Mom and Pop exception, $25,000 may be deducted until phase out from 100,000 to 150,000
What is the passive activity limitation law?
can’t deduct passive activity losses unless you have passive income generators
What is a residence with minimal rental use?
renting a home for 14 or fewer days
What is a nonresidence?
We rent but don’t use personally at all (rental property)
Business use of home deduction is qualifies if…
self - employed
principal place of business
place to meet clients in normal course of business
What are the deductions indirectly related to business activites?
IRA
Health insurance
SE tax
HSA (health savings account)
Penalty for early withdrawal savings
What is an HSA?
Health Savings account
Itemized deductible medical expenses include…
Med exp to treat them or dependents
Reiumbursed payments, prevention diagnosis, cure of sum
Medical transportation purposes
Itemized deductible taxes include…
state, local, foreign
state and local real estate taxes
s & l on prop tax that are assesed on value of specific property
sales and local sales
LIMITED TO 10,000 TOTAL (5000 if MFS)
Itemized deductible charitable contribitons must be made to a….
qualified charity
Does a go fund me to an individual count as an charitable contribution? Homeless person?
NAH
Does a go fund me to a charity count as an charitable contribution?
YAH
