How can we help?

You can also find more resources in our Help Center.

Study sets matching "federal taxation"

Study sets
Classes
Users

Study sets matching "federal taxation"

79 terms
Federal Taxation
Steps for Determining Tax Liability
Gross Income
Realization
Non-Cash Receipts
1. Gross Income (All includable income) ... -... 2. Above the line…
Income from whatever source derived ... Includes any economic b…
MUST be realization in order for income to be TAXABLE... The in…
GI includes FMV of any property received AND ... FMV of any serv…
Steps for Determining Tax Liability
1. Gross Income (All includable income) ... -... 2. Above the line…
Gross Income
Income from whatever source derived ... Includes any economic b…
41 terms
Federal Taxation
incremental basis
largest sources of federal revenues
tax base
tax rate
federal income tax is changed on an incremental basis rather…
*individual income taxes--largest... *Social Security (FICA) tax…
amount to which the tax rate is applied to determine tax due.…
percentage rate applied to the tax base.
incremental basis
federal income tax is changed on an incremental basis rather…
largest sources of federal revenues
*individual income taxes--largest... *Social Security (FICA) tax…
10 terms
Federal Taxation
income taxes
Gross income
proportional
progressive
taxpayer's income, both taxable and nontaxable, increase in w…
except as otherwise provided all income from whatever source…
rate of tax remains constant (sales tax)
higher rate of tax applies as the tax base increases
income taxes
taxpayer's income, both taxable and nontaxable, increase in w…
Gross income
except as otherwise provided all income from whatever source…
34 terms
federal taxation
16th amendment
social security act (1935)
legislative branch
voluntary compliance and self-assessment
gave congress the right to tax on personal income
type of insurance benefits providing for old age & retirement…
the only branch with power to tax
2 major responsibilities of every taxpayer
16th amendment
gave congress the right to tax on personal income
social security act (1935)
type of insurance benefits providing for old age & retirement…
58 terms
Taxation 1 - Federal Taxation
Tax Base
Tax Rate
Progressive Rate
Proportional Rate
is the amount to which the tax rate is applied to determine t…
is merely the percentage rate applied to the tax base.
is one where the rate of tax increases as the tax base increa…
is one where the rate of tax is the same for all taxpayers, r…
Tax Base
is the amount to which the tax rate is applied to determine t…
Tax Rate
is merely the percentage rate applied to the tax base.
27 terms
Federal Taxation
26 IRS 61
26 IRS 102
26 IRS 132
26 IRS 1001
gross income defined
gifts and inheritances
certain fringe benefits
determination of amount of and received of gain or loss
26 IRS 61
gross income defined
26 IRS 102
gifts and inheritances
43 terms
Federal Taxation
Section 1
Section 11
Section 7701(0)
Section 161
Income Tax rates
Corporate Tax Rates
Economic Substance
Gross Income
Section 1
Income Tax rates
Section 11
Corporate Tax Rates
6 terms
Federal Taxation
Tax Code encourages investment in huma…
Functions of the income tax: financing…
Gross Income
Glenshaw Glass def of gross income
any amount of tuition paid for the education of children, gra…
Further, the income tax shapes and preserves the fundamental…
all income from whatever source derived.
the undeniable accession to wealth, clearly realized over whi…
Tax Code encourages investment in huma…
any amount of tuition paid for the education of children, gra…
Functions of the income tax: financing…
Further, the income tax shapes and preserves the fundamental…
57 terms
Federal Taxation
types of property
estate tax
inheritance tax
gift tax free limit
real estate, personal
the money in the estate in responsible for tax
the heir is responsible for the tax
$14,000 per gift to individual
types of property
real estate, personal
estate tax
the money in the estate in responsible for tax
33 terms
Federal Taxation
IRC
Internal Revenue Service
Flat Tax
Ordinary Income
Internal Revenue Code
Agency within the Dept of Treasury
Imposing the same percentage tax on all income
Income received that is taxed at the highest rates, or ordina…
IRC
Internal Revenue Code
Internal Revenue Service
Agency within the Dept of Treasury
18 terms
Federal Taxation: Individual - Chapter 16
Alternative tax
Capital asset
Capital gain
Capital loss
An option that is allowed in computing the tax on net capital…
Broadly speaking, all assets are capital except those specifi…
The gain from the sale or exchange of a capital asset.
The loss from the sale or exchange of a capital asset.
Alternative tax
An option that is allowed in computing the tax on net capital…
Capital asset
Broadly speaking, all assets are capital except those specifi…
26 terms
Federal Taxation: Individual - Chapter 18
Accounting method
Accounting period
Accrual method
All events test
The method under which income and expenses are determined for…
The period of time, usually a year, used by a taxpayer for th…
A method of accounting that reflects expenses incurred and in…
For accrual method taxpayers, income is earned when (1) all o…
Accounting method
The method under which income and expenses are determined for…
Accounting period
The period of time, usually a year, used by a taxpayer for th…
11 terms
Federal Taxation: Individual - Chapter 17
Intangible drilling and development co…
Long-term nonpersonal use capital assets
Related party
Section 1231 gains and losses
Taxpayers may elect to expense or capitalize (subject to amor…
Includes investment property with a long-term holding period.…
Various Code Sections define related parties and often includ…
If the combined gains and losses from the taxable disposition…
Intangible drilling and development co…
Taxpayers may elect to expense or capitalize (subject to amor…
Long-term nonpersonal use capital assets
Includes investment property with a long-term holding period.…
6 terms
Federal Taxation: Individual - Chapter 12
ACE adjustment
Alternative minimum tax (AMT)
Alternative minimum tax credit
Alternative tax NOL deduction (ATNOLD)
An adjustment in computing corporate alternative minimum taxa…
The AMT is a fixed percentage of alternative minimum taxable…
The AMT can result from timing differences that give rise to…
In calculating the AMT, the taxpayer is allowed to deduct NOL…
ACE adjustment
An adjustment in computing corporate alternative minimum taxa…
Alternative minimum tax (AMT)
The AMT is a fixed percentage of alternative minimum taxable…
8 terms
Federal Taxation: Individual - Chapter 14
Adjusted basis
Amount realized
Fair market value
Goodwill
The cost or other basis of property reduced by depreciation a…
The amount received by a taxpayer upon the sale or exchange o…
The amount at which property would change hands between a wil…
The reputation and built-up business of a company. For accoun…
Adjusted basis
The cost or other basis of property reduced by depreciation a…
Amount realized
The amount received by a taxpayer upon the sale or exchange o…
6 terms
Federal Taxation: Individual - Chapter 15
Boot
Involuntary conversion
Like-kind exchanges
Nontaxable exchange
Cash or property of a type not included in the definition of…
The loss or destruction of property through theft, casualty,…
An exchange of property held for productive use in a trade or…
A transaction in which realized gains or losses are not recog…
Boot
Cash or property of a type not included in the definition of…
Involuntary conversion
The loss or destruction of property through theft, casualty,…
22 terms
Federal Taxation: Individual - Chapter 19
Cafeteria benefit plan
Cash balance plan
Deferred compensation
Defined benefit plan
An employee benefit plan under which an employee is allowed t…
A hybrid form of pension plan similar in some aspects to a de…
Compensation that will be taxed when received or upon the rem…
Qualified plans can be dichotomized into defined benefit plan…
Cafeteria benefit plan
An employee benefit plan under which an employee is allowed t…
Cash balance plan
A hybrid form of pension plan similar in some aspects to a de…
13 terms
Federal Taxation: Individual - Chapter 11
Active income
At-risk limitation
Closely held corporation
Investment income
Wages, salary, commissions, bonuses, profits from a trade or…
Generally, a taxpayer can deduct losses related to a trade or…
A corporation where stock ownership is not widely dispersed.…
Consisting of virtually the same elements as portfolio income…
Active income
Wages, salary, commissions, bonuses, profits from a trade or…
At-risk limitation
Generally, a taxpayer can deduct losses related to a trade or…
15 terms
Federal Taxation: Individual - Chapter 20
C corporation
Check-the-box Regulations
Constructive dividend
Dividends received deduction
A separate taxable entity subject to the rules of Subchapter…
By using the check-the-box rules prudently, an entity can sel…
A taxable benefit derived by a shareholder from his or her co…
A deduction allowed a shareholder that is a corporation for d…
C corporation
A separate taxable entity subject to the rules of Subchapter…
Check-the-box Regulations
By using the check-the-box rules prudently, an entity can sel…
23 terms
Federal Taxation: Individual - Chapter 4
Accounting income
Accounting method
Accrual method
Alimony and separate maintenance payme…
The accountant's concept of income is generally based upon th…
The method under which income and expenses are determined for…
A method of accounting that reflects expenses incurred and in…
Alimony deductions result from the payment of a legal obligat…
Accounting income
The accountant's concept of income is generally based upon th…
Accounting method
The method under which income and expenses are determined for…
27 terms
Federal Taxation: Individual - Chapter 13
Adoption expenses credit
American Opportunity credit
Child tax credit
Credit for certain retirement plan con…
A provision intended to assist taxpayers who incur nonrecurri…
This credit replaces the HOPE scholarship credit for years af…
A tax credit based solely on the number of qualifying childre…
A nonrefundable credit is available based on eligible contrib…
Adoption expenses credit
A provision intended to assist taxpayers who incur nonrecurri…
American Opportunity credit
This credit replaces the HOPE scholarship credit for years af…
12 terms
Federal Taxation: Individual - Chapter 9
Accountable plan
Automatic mileage method
Deduction for qualified tuition and re…
Education expenses
A type of expense reimbursement plan that requires an employe…
Automobile expenses are generally deductible only to the exte…
Taxpayers are allowed a deduction of up to $4,000 for higher…
Employees may deduct education expenses that are incurred eit…
Accountable plan
A type of expense reimbursement plan that requires an employe…
Automatic mileage method
Automobile expenses are generally deductible only to the exte…
10 terms
Federal Taxation: Individual - Chapter 10
Acquisition indebtedness
Capital gain property
Charitable contributions
Health Savings Account (HSA)
Debt incurred in acquiring, constructing, or substantially im…
Property contributed to a charitable organization that if sol…
Contributions are deductible (subject to various restrictions…
A medical savings account created in legislation enacted in D…
Acquisition indebtedness
Debt incurred in acquiring, constructing, or substantially im…
Capital gain property
Property contributed to a charitable organization that if sol…
16 terms
Federal Taxation: Individual - Chapter 3
Abandoned spouse
Child tax credit
Collectibles
Head of household
The abandoned spouse provision enables a married taxpayer wit…
A tax credit based solely on the number of qualifying childre…
A special type of capital asset, the gain from which is taxed…
An unmarried individual who maintains a household for another…
Abandoned spouse
The abandoned spouse provision enables a married taxpayer wit…
Child tax credit
A tax credit based solely on the number of qualifying childre…
25 terms
Federal Taxation: Individual - Chapter 2
Acquiescence
Circuit Court of Appeals
Citator
Court of original jurisdiction
Agreement by the IRS on the results reached in certain judici…
Any of 13 Federal courts that consider tax matters appealed f…
A tax research resource that presents the judicial history of…
The Federal courts are divided into courts of original jurisd…
Acquiescence
Agreement by the IRS on the results reached in certain judici…
Circuit Court of Appeals
Any of 13 Federal courts that consider tax matters appealed f…
26 terms
Federal Taxation: Individual - Chapter 1
Ad valorem tax
Correspondence audit
Employment taxes
Estate tax
A tax imposed on the value of property. The most common ad va…
An audit conducted by the IRS by the U.S. mail. Typically, th…
Taxes that an employer must pay on account of its employees.…
A tax imposed on the right to transfer property by death. Thu…
Ad valorem tax
A tax imposed on the value of property. The most common ad va…
Correspondence audit
An audit conducted by the IRS by the U.S. mail. Typically, th…
18 terms
Federal Taxation: Individual - Chapter 7
Bad debts
Business bad debt
Casualty loss
Disaster area loss
A deduction is permitted if a business account receivable sub…
A tax deduction allowed for obligations obtained in connectio…
A casualty is defined as the complete or partial destruction…
A casualty sustained in an area designated as a disaster area…
Bad debts
A deduction is permitted if a business account receivable sub…
Business bad debt
A tax deduction allowed for obligations obtained in connectio…
23 terms
Federal Taxation: Individual - Chapter 5
Accelerated death benefits
Accident and health insurance benefits
Cafeteria plan
Compensatory damages
The amount received from a life insurance policy by the insur…
See accident and health benefits.
An employee benefit plan under which an employee is allowed t…
Damages received or paid by the taxpayer can be classified as…
Accelerated death benefits
The amount received from a life insurance policy by the insur…
Accident and health insurance benefits
See accident and health benefits.
9 terms
Federal Taxation: Individual - Chapter 6
Accounting method
Deductions for adjusted gross income
Deductions from adjusted gross income
Hobby losses
The method under which income and expenses are determined for…
The Federal income tax is not imposed upon gross income. Rath…
See deductions for adjusted gross income.
Losses from an activity not engaged in for profit. The Code r…
Accounting method
The method under which income and expenses are determined for…
Deductions for adjusted gross income
The Federal income tax is not imposed upon gross income. Rath…
17 terms
Federal Taxation: Individual - Chapter 8
Accelerated cost recovery system (ACRS)
Alternative depreciation system (ADS)
Amortization
Cost depletion
A method in which the cost of tangible property is recovered…
A cost recovery system that produces a smaller deduction than…
The tax deduction for the cost or other basis of an intangibl…
Depletion that is calculated based on the adjusted basis of t…
Accelerated cost recovery system (ACRS)
A method in which the cost of tangible property is recovered…
Alternative depreciation system (ADS)
A cost recovery system that produces a smaller deduction than…
25 terms
Federal Taxation Chapter 1
Which of the following is a tax?... I. A…
Which of the following is considered a…
Earmarked taxes are
Sin taxes are
I and III are correct.
A local surcharge paid on retail sales to fund public schools.
taxes assessed TO FUND a specific purpose.
taxes assessed TO DISCOURAGE less desirable behavior.
Which of the following is a tax?... I. A…
I and III are correct.
Which of the following is considered a…
A local surcharge paid on retail sales to fund public schools.
32 terms
Federal Taxation Chapter 10
Which of the following is not used in…
Which of the following is not true reg…
Which of the following is how gain or…
Which of the following realized gains…
Adjusted basis.
Tax adjusted basis is usually GREATER than book adjusted basis.
Amount realized less adjusted basis.
Sale to a related party.
Which of the following is not used in…
Adjusted basis.
Which of the following is not true reg…
Tax adjusted basis is usually GREATER than book adjusted basis.
27 terms
Federal Taxation Chapter 4
The income tax base for an individual…
Which of the following series of inequ…
Which of the following statements rega…
Which of the following statements rega…
Adjusted gross income MINUS from AGI deductions
gross income ≥ ADJUSTED gross income ≥ taxable income
Realized income requires some type of transaction or exchange…
An income item need not be realized in order to qualify as an…
The income tax base for an individual…
Adjusted gross income MINUS from AGI deductions
Which of the following series of inequ…
gross income ≥ ADJUSTED gross income ≥ taxable income
21 terms
Federal Taxation Chapter 8
Individual proprietors report their bu…
According to the Internal Revenue Code…
Which of the following is NOT likely t…
The IRS would most likely apply the ar…
Schedule C
ordinary and necessary
cost of a greenhouse
REASONABLENESS of an expenditure
Individual proprietors report their bu…
Schedule C
According to the Internal Revenue Code…
ordinary and necessary
19 terms
Federal Taxation Chapter 14
In order to be eligible to exclude gai…
Which of the following statements rega…
What is the maximum amount of gain on…
Which of the following statements rega…
Use test AND Ownership test
A taxpayer MAY SIMULTANEOUSLY OWN TWO HOMES that are eligible…
$500,000
If a taxpayer USES A RESIDENCE AS A RENTAL PROPERTY (and dedu…
In order to be eligible to exclude gai…
Use test AND Ownership test
Which of the following statements rega…
A taxpayer MAY SIMULTANEOUSLY OWN TWO HOMES that are eligible…
29 terms
Federal Taxation Chapter 13
Which of the following statements is t…
Which of the following describes a def…
Which of the following statements rega…
Which of the following statements rega…
They are generally REFERRED TO AS DEFINED BENEFIT PLANS or de…
Provides FIXED INCOME TO THE PLAN PARTICIPANTS based on a for…
Employees BEAR THE INVESTMENT RISKS of the plan
When an employee's benefits vest, she is LEGALLY entitled to…
Which of the following statements is t…
They are generally REFERRED TO AS DEFINED BENEFIT PLANS or de…
Which of the following describes a def…
Provides FIXED INCOME TO THE PLAN PARTICIPANTS based on a for…
19 terms
Federal Taxation Chapter 6
Congress allows self-employed taxpayer…
Which of the following is a true state…
Which of the following is a true state…
Which of the following is a true state…
this deduction provides a MEASURE OF EQUITY between employees…
CONGRESS ALLOWS SELF-EMPLOYED TAXPAYERS to deduct the employe…
RENTAL AND ROYALTY expenses are deducted for AGI.
To satisfy the DISTANCE test, the distance from the taxpayer'…
Congress allows self-employed taxpayer…
this deduction provides a MEASURE OF EQUITY between employees…
Which of the following is a true state…
CONGRESS ALLOWS SELF-EMPLOYED TAXPAYERS to deduct the employe…
25 terms
Federal Taxation Chapter 3
The goal of tax planning generally is to
Which is NOT a basic tax planning stra…
Which of the following strategies is b…
Assuming a positive interest rate, the…
Maximize after-tax wealth
arms length transaction
timing
$1 today > (GREATER THAN) $1 in one year
The goal of tax planning generally is to
Maximize after-tax wealth
Which is NOT a basic tax planning stra…
arms length transaction
43 terms
Federal Taxation Chapter 7
The taxable income levels in the marri…
Which of the following is not a barrie…
Assuming the kiddie tax applies, what…
The alternative minimum tax base is ty…
double
ELIMINATION OF PREFERNTAIL TAX RATES (on dividends and long-t…
The net unearned income
larger than
The taxable income levels in the marri…
double
Which of the following is not a barrie…
ELIMINATION OF PREFERNTAIL TAX RATES (on dividends and long-t…
10 terms
Federal Taxation Chapter 9
Tax cost recovery methods do NOT include
Which of the following is NOT deprecia…
Which of the following would be consid…
Tax depreciation is currently calculat…
Capitalization
Patent
Engine overhaul
Modified accelerated cost recovery system
Tax cost recovery methods do NOT include
Capitalization
Which of the following is NOT deprecia…
Patent
14 terms
Federal Taxation - Chapter 1
progressive tax
proportional tax
regressive tax
FICA
as money made increases, so does the tax rate (not just the a…
flat tax where everyone pays taxes at the same rate
as money made increases, the tax rate decreases; ex. FICA
6.2% tax rate matched by employer for total of 12.4% to gover…
progressive tax
as money made increases, so does the tax rate (not just the a…
proportional tax
flat tax where everyone pays taxes at the same rate
18 terms
Federal Taxation Ch 1
Tax
Sin Tax
Earmarked Tax
Flat Tax
* A payment required(not voluntarily) ... * Imposed by a governm…
a payment required by a government that is unrelated to any s…
A tax that is assessed for a specific purpose
a tax in which a single tax rate is applied throughout the ta…
Tax
* A payment required(not voluntarily) ... * Imposed by a governm…
Sin Tax
a payment required by a government that is unrelated to any s…
24 terms
Federal Taxation Chapter 2
Which of the following is NOT a factor…
Corporations are required to file a ta…
This year April 15th falls on a Saturd…
Which of the following is not a common…
Taxpayer's EMPLOYMENT.
None of these. Corporations are always required to file a tax…
April 17th.
Tax Select system.
Which of the following is NOT a factor…
Taxpayer's EMPLOYMENT.
Corporations are required to file a ta…
None of these. Corporations are always required to file a tax…
32 terms
Federal Taxation Chapter 10
Which of the following is not used in…
Which of the following is not true reg…
Which of the following is how gain or…
Which of the following realized gains…
Adjusted basis.
Tax adjusted basis is usually GREATER than book adjusted basis.
Amount realized less adjusted basis.
Sale to a related party.
Which of the following is not used in…
Adjusted basis.
Which of the following is not true reg…
Tax adjusted basis is usually GREATER than book adjusted basis.
8 terms
Federal Taxation - Code Sections
Sec. 132
Sec 62
Sec 263
Sec 162
fringe benefits
identifies "deductions for AGI"
capital expenditures
business expenses
Sec. 132
fringe benefits
Sec 62
identifies "deductions for AGI"
56 terms
Federal Income Taxation
How do you deal with a tax problem?
Income Tax Formula: §63(a)
Gross Income
Realizable Event
1. Read the code... 2. Look for defined terms... 3. Look at interpr…
GROSS INCOME... <DEDUCTIONS>... =TAX LIABILITY
1. Accession To Wealth (ATW)... 2. Clearly Realized... 3. Dominion…
Sale or disposition of property
How do you deal with a tax problem?
1. Read the code... 2. Look for defined terms... 3. Look at interpr…
Income Tax Formula: §63(a)
GROSS INCOME... <DEDUCTIONS>... =TAX LIABILITY
8 terms
Federal Taxation Chapter 5
Gross income includes
Which of the following is NOT a necess…
Identify the rule that determines whet…
Identify the rule dictating that on a…
ALL INCOME from whatever source derived unless excluded by law
Income must be PAID IN CASH
Tax BENEFIT rule
Return of capital principle
Gross income includes
ALL INCOME from whatever source derived unless excluded by law
Which of the following is NOT a necess…
Income must be PAID IN CASH
19 terms
Federal Taxation Chapter 6
Congress allows self-employed taxpayer…
Which of the following is a true state…
Which of the following is a true state…
Which of the following is a true state…
this deduction provides a MEASURE OF EQUITY between employees…
CONGRESS ALLOWS SELF-EMPLOYED TAXPAYERS to deduct the employe…
RENTAL AND ROYALTY expenses are deducted for AGI.
To satisfy the DISTANCE test, the distance from the taxpayer'…
Congress allows self-employed taxpayer…
this deduction provides a MEASURE OF EQUITY between employees…
Which of the following is a true state…
CONGRESS ALLOWS SELF-EMPLOYED TAXPAYERS to deduct the employe…
21 terms
Federal Taxation Chapter 8
Individual proprietors report their bu…
According to the Internal Revenue Code…
Which of the following is NOT likely t…
The IRS would most likely apply the ar…
Schedule C
ordinary and necessary
cost of a greenhouse
REASONABLENESS of an expenditure
Individual proprietors report their bu…
Schedule C
According to the Internal Revenue Code…
ordinary and necessary
25 terms
Federal Taxation Chapter 3
The goal of tax planning generally is to
Which is NOT a basic tax planning stra…
Which of the following strategies is b…
Assuming a positive interest rate, the…
Maximize after-tax wealth
arms length transaction
timing
$1 today > (GREATER THAN) $1 in one year
The goal of tax planning generally is to
Maximize after-tax wealth
Which is NOT a basic tax planning stra…
arms length transaction
1 of 10