Study sets matching "tax deductions"

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Study sets matching "tax deductions"

23 terms
Tax - Deductions
Above the Line v. Below the Line Deduc…
Cost of Living is
Losses on Personal-Use Property is
Cost of Making a Living Deductible
1. Deducted first to arrive at adjusted gross income (Alimony…
Not Deductible (Personal, Family, or Living Expenses)
Not Deductible, except for casualty losses
All ord & Necessary expenses of business/investment company a…
Above the Line v. Below the Line Deduc…
1. Deducted first to arrive at adjusted gross income (Alimony…
Cost of Living is
Not Deductible (Personal, Family, or Living Expenses)
Tax and Deductions
gross pay
net pay
deduction
withheld
total amount of money earned by an employee
amount of money left over after deductions
money taken from gross pay for things like taxes, health insu…
kept out, money deducted from your gross pay
gross pay
total amount of money earned by an employee
net pay
amount of money left over after deductions
33 terms
Tax - Deductions
Trade or Business Deductions
Prepaid Rent
Prepaid Interest
Taxes
FOR - must be ordinary (not surprising) and necessary (approp…
May be deducted in year paid if: ... 1. period for which pymt is…
NOT deductible, but POINTS ARE (ONLY for principal residence)
Payroll and property taxes (which must be allocated by number…
Trade or Business Deductions
FOR - must be ordinary (not surprising) and necessary (approp…
Prepaid Rent
May be deducted in year paid if: ... 1. period for which pymt is…
116 terms
Tax - Deductions
Rent and royalties (investment expense)
Reimbursed employee expenses
Unreimbursed moving expenses
Teacher professional development and s…
For AGI
For AGI
For AGI
For AGI
Rent and royalties (investment expense)
For AGI
Reimbursed employee expenses
For AGI
14 terms
Tax deductions
Section 162
Section 162 - any trade or business
Section 162 - penalty X
Section 162 - Reasonable compensation
Apply to any entity in a trade or business... • If you work for…
One can deduct ORD + NEC expenses of a T/B (ordinary and nece…
You may not deduct fines, penalties, and other illegal paymen…
in order to deduct your entire compensation package, compensa…
Section 162
Apply to any entity in a trade or business... • If you work for…
Section 162 - any trade or business
One can deduct ORD + NEC expenses of a T/B (ordinary and nece…
49 terms
Deductions - Tax
General Permission
Two Limbs of the General Permission
Buckley & Young v CIR
Grieve + Buckley & Young
S DA 1... A person is allowed a deduction for an amount of expen…
• For (a) Expenses must relate directly to producing income.…
1) Deduction available only where expenditure has necessary r…
• Inquiry focussed on identifying advantage gained by expendi…
General Permission
S DA 1... A person is allowed a deduction for an amount of expen…
Two Limbs of the General Permission
• For (a) Expenses must relate directly to producing income.…
Tax deductions
Social Security
Medicare
Hamilton County
State Income
6.2%
1.45%
7%
3.3%
Social Security
6.2%
Medicare
1.45%
23 terms
Tax- Deductions
DA 1
Buckley and Young
F24 (Drug Dog)
CIR v Banks
Expenditure/loss = deductible if:... 1. incurred in deriving as…
There must be a sufficient nexus between expenditure and taxp…
you can claim part of the expenses as deductions. apportionme…
B worked at polytech as lecturer. He marked scripts and prepa…
DA 1
Expenditure/loss = deductible if:... 1. incurred in deriving as…
Buckley and Young
There must be a sufficient nexus between expenditure and taxp…
Taxes and Deductions
Deduction
State Tax
Social Security
Garnishment
Amount withheld from a paycheck.
The percentage deducted from an individual's paycheck to assi…
Used to provide a supplemental retirement income for certain…
A court-ordered deduction.
Deduction
Amount withheld from a paycheck.
State Tax
The percentage deducted from an individual's paycheck to assi…
12 terms
Tax Deductible?
Life Insurance Premiums
Life Insurance Cash Value
Life Insurance Policy Loans
Life Insurance Policy Dividends
no
only if amount exceeds premiums
no
no
Life Insurance Premiums
no
Life Insurance Cash Value
only if amount exceeds premiums
Tax-Deductions and Exemptions
Above the line deductions
Itemized Non Business Deductions-Home…
Itemized Non Business Deductions-State…
Itemized Non Business Deductions-Unrei…
-Ordinary and necessary business expenses (salaries, rent, ut…
Rule:Tax payers may deduct home mortgage interest on mortgage…
Taxes paid to state and local governments are deductible exce…
Rule: Unreimbursed casualty losses are deductible if... 1. the l…
Above the line deductions
-Ordinary and necessary business expenses (salaries, rent, ut…
Itemized Non Business Deductions-Home…
Rule:Tax payers may deduct home mortgage interest on mortgage…
IN Tax-Exclusions and Deductions
Annual Exclusion
Annual Exclusion Restrictions
Gift Splitting By Spouses
Exclusion for tuition and Medical Expe…
Rule: Each taxpayer may exclude the first 14k in gift transfe…
Rule: The annual exclusion generally cannot be used for a gif…
Rule: Spouses can effectively double the annual exclusion by…
Amounts paid for tuition or medical expenses on behalf of ano…
Annual Exclusion
Rule: Each taxpayer may exclude the first 14k in gift transfe…
Annual Exclusion Restrictions
Rule: The annual exclusion generally cannot be used for a gif…
40 terms
Tax 1 Final (Deductions)
Student Loan Interest
Self-employed Health Insurance
Self-employment Tax
IRA Contribution
A deduction of up to $2,500 can be claimed for qualified educ…
A self-employed individual can deduct 100% of their health in…
A self-employed individual can deduct 50% of their self-emplo…
The taxpayer may contribute and deduct up to $5,500 to an IRA…
Student Loan Interest
A deduction of up to $2,500 can be claimed for qualified educ…
Self-employed Health Insurance
A self-employed individual can deduct 100% of their health in…
Tax Exam 1 (Deductions)
What is the legislative grace concept?
In general, what is IRC § 162?
What qualifies an expense as ordinary?
What qualifies an expense as necessary?
Nothing is deductible unless a Code provision allows the dedu…
In general:... There shall be allowed as a deduction all the ord…
An expense is ordinary if it is normal, usual, or customary i…
An expense is necessary if a prudent business person would in…
What is the legislative grace concept?
Nothing is deductible unless a Code provision allows the dedu…
In general, what is IRC § 162?
In general:... There shall be allowed as a deduction all the ord…
Tax - Expense Deductions
Rent and royalty expenses
All other investment expenses
Commuting expenses
Travel and Transportation expenses
Deductible - For AGI
Deductible - From AGI
Not Deductible
Deductible - From AGI... (deductible for AGI if reimbursed with…
Rent and royalty expenses
Deductible - For AGI
All other investment expenses
Deductible - From AGI
12 terms
Tax Exemptions and Deductions
Standard Deduction (Married Filing Joi…
Standard Deduction (Head of Household)
Standard Deduction (Married filing Sep…
Personal Exemption
$12,700
$9,350
$6,350
$4,050
Standard Deduction (Married Filing Joi…
$12,700
Standard Deduction (Head of Household)
$9,350
Financial literacy : tax deductions
Tax minimization
Examples of tax deductions
Roth 401K... Roth IRA
Health savings account
Help lower taxable income
1-traditional 401K (retirement plan)... 2- traditional IRA (indi…
-tax free income... -pay taxes on og amount... -no tax deduction
Both Roth and traditional
Tax minimization
Help lower taxable income
Examples of tax deductions
1-traditional 401K (retirement plan)... 2- traditional IRA (indi…
Tax Formula: Deductions
Expenses incurred in a trade or business
Part of any Federal self-employment ta…
Unreimbursed moving expenses
Contributions to traditional Individua…
Deductions FOR Adjusted Gross Income
Deductions FOR Adjusted Gross Income
Deductions FOR Adjusted Gross Income
Deductions FOR Adjusted Gross Income
Expenses incurred in a trade or business
Deductions FOR Adjusted Gross Income
Part of any Federal self-employment ta…
Deductions FOR Adjusted Gross Income
11 terms
TAX Deductions FOR AGI
Adjustments FOR AGI
Deductions FOR AGI
1. Student Loan Interest
2. Health Savings Account
Taxpayers can deduct certain items from total income for purp…
1. Student Loan Interest... 2. Health Savings Account... 3. Moving…
Maximum deduction of $2,500 in interest expense for qualified…
Available when taxpayer is self-employed or participants in a…
Adjustments FOR AGI
Taxpayers can deduct certain items from total income for purp…
Deductions FOR AGI
1. Student Loan Interest... 2. Health Savings Account... 3. Moving…
6 terms
Tax - Itemized Deductions
Medical Expenses (10% AGI) - Bucket
Taxes
Interest (Expense)
Charitable Contributions
Includes amounts paid for diagnosis, cure, mitigation, treatm…
(a) State and local real and personal PROPERTY tax; related t…
(a) Personal... - Acquisition indebtedness - up to $1 mil - up t…
(a) Can't be over 50% AGI... (b) Appreciable property (must be l…
Medical Expenses (10% AGI) - Bucket
Includes amounts paid for diagnosis, cure, mitigation, treatm…
Taxes
(a) State and local real and personal PROPERTY tax; related t…
15 terms
Deductions - Inc. Tax
162 T/B v. 212
61, 62, 63, 67, 68
ordinary and necessary business expens…
Loss deduction
162 is ordinary and necessary business expenses in the course…
61 gross income - compensation, wages, debt discharge of inco…
Ordinary means common and accepted -> don't look at a specifi…
Loss deduction is based on loss and ADJUSTED BASIS, not FMV.…
162 T/B v. 212
162 is ordinary and necessary business expenses in the course…
61, 62, 63, 67, 68
61 gross income - compensation, wages, debt discharge of inco…
11 terms
Tax: FOR AGI Deductions
Trade or Business expense
Rental and Royalty Expenses
Disposal of business assets
Expenses/losses on flow thru entity
Deductible.
Deductible. Exception to investment expense that's in FOR AGI.
Net Deductible. Up to 3000 losses.
Deductible.
Trade or Business expense
Deductible.
Rental and Royalty Expenses
Deductible. Exception to investment expense that's in FOR AGI.
22 terms
Profit Tax - Deductions
Allowable expenditure - s.16
Apportionment of Deductible Expenses
Specifically Allowed Expenditure - s.16
Deductions not allowed - s.17
- outgoings and expenses incurred in the production of profit…
- apportion of expenses allowed... - interests on loans used in…
- interest and related expenses for operating funds... - rental…
- Domestic and private expenditures... - expenses not for the pr…
Allowable expenditure - s.16
- outgoings and expenses incurred in the production of profit…
Apportionment of Deductible Expenses
- apportion of expenses allowed... - interests on loans used in…
19 terms
Salaries Tax - Deductions
Allowable expenses
DIPN 9 Deductions allowed for
Depreciation Allowances
Net Assessable Income
- all expenses incurred in the production of assessable incom…
- special clothes worn only at work... - commissions ... - entertai…
- allows the deduciton of depreciation expenses of PP&E ... - mu…
Total Asessable Income less:... - outgoings & expenses... - depreci…
Allowable expenses
- all expenses incurred in the production of assessable incom…
DIPN 9 Deductions allowed for
- special clothes worn only at work... - commissions ... - entertai…
7 terms
Tax: FROM AGI Deductions
Unreimbursed Medical Expenses
Taxes
Interest
Charitable Contributions
All deductible. Subject to the 10% AGI Floor.
State, local, real estate, personal property. Can deduct stat…
Acquisition indebtedness (interest up to 1M) vs Home-Equity I…
Cash - deductible. Property - Capital gain property (deduct f…
Unreimbursed Medical Expenses
All deductible. Subject to the 10% AGI Floor.
Taxes
State, local, real estate, personal property. Can deduct stat…
21 terms
Tax 2 - Deductions for AGI
A. Trade or business deductions not as…
B. Deduction for one-half of S.E. tax…
C. Deduction for 100% of self-employed…
D. Employee business expenses, only if…
Deduction for AGI
Deduction for AGI
Deduction for AGI
Deduction for AGI
A. Trade or business deductions not as…
Deduction for AGI
B. Deduction for one-half of S.E. tax…
Deduction for AGI
Tax Test 1 - Std. Deductions
Single
Married, filing Joint
Surviving Spouse
Head of Household
6,300
12,600
12,600
9,300
Single
6,300
Married, filing Joint
12,600
136 terms
Tax Chapter 5: Business Deductions
code 162
ordinary
necessary
reasonable
permits a deductions for all ordinary and necessary expenses…
normal, usual, or customary in the type of business conducted…
a prudent businessperson would incur the same expense and the…
a question of fact. transactions (rent, interest, salaries) b…
code 162
permits a deductions for all ordinary and necessary expenses…
ordinary
normal, usual, or customary in the type of business conducted…
16 terms
Taxes and Other Deductions
disposable income
gross pay
net pay
exemption
how much you have to spend on your needs and wants.
total salary or wages earned during the pay period.
the amount of your paycheck after deductions.
a person claimed as a dependent on a tax return.
disposable income
how much you have to spend on your needs and wants.
gross pay
total salary or wages earned during the pay period.
6 terms
2016 TAXES - ITEMIZED DEDUCTIONS - DEDUCTIBLE TAXES
The four types of deductible nonbusine…
You can elect to deduct state and loca…
Any estimated taxes you paid to state…
Generally, you can take either a deduc…
Deductible Taxes may be claimed only as an itemized deduction…
If you elect to deduct state and local general sales taxes, y…
Any prior year's state or local income tax you paid during th…
As an employee, you can deduct mandatory contributions to sta…
The four types of deductible nonbusine…
Deductible Taxes may be claimed only as an itemized deduction…
You can elect to deduct state and loca…
If you elect to deduct state and local general sales taxes, y…
17 terms
Taxes and other Payroll Deductions
taxable income
payroll deduction
exemption
federal income tax
gross annual income minus tax deductions minus exemptions
an amount subtracted from gross income
reduces taxable income by a specified amount for an individual
levied by the federal government on the money you earn each y…
taxable income
gross annual income minus tax deductions minus exemptions
payroll deduction
an amount subtracted from gross income
57 terms
Tax Accounting Chapter 5 Deductions
What do itemized deductions consist of?
Are itemized deductions FOR or FROM AGI?
What are most itemized deductions subj…
Are investment expenses by individuals…
allowable personal expenditures... MISC itemized deductions
The are deducted FROM AGI.
income limitations
Deductible as MISC itemized expenses. ... (previous question sta…
What do itemized deductions consist of?
allowable personal expenditures... MISC itemized deductions
Are itemized deductions FOR or FROM AGI?
The are deducted FROM AGI.
Taxes other deductions
gross pay
net pay
exemption
dependent
Total salary earned during pay period
amount of paycheck after deductions
Person who is dependent on tax return
person who depends on you for more than half of their support
gross pay
Total salary earned during pay period
net pay
amount of paycheck after deductions
Taxes and other deductions
gross pay
net pay
exemption
dependant
total salary or wages earned during pay period
the amount of your patcheck after deductions
a person claimned as a dependant on a tax return
a person who depends on you for more han half of his support
gross pay
total salary or wages earned during pay period
net pay
the amount of your patcheck after deductions
Taxes And Other Deductions
Gross pay
Net pay
Exemption
Dependent
total salary or wages earned during the pay period
the amount of your paycheck after deductions
a person claimed as a dependent on a tax return
a person who depends on yo for more than half of his or her s…
Gross pay
total salary or wages earned during the pay period
Net pay
the amount of your paycheck after deductions
10 terms
Taxes and Other Deductions
Gross Pay
Net Pay
Exemption
Dependent
total salary or wages earned during the pay period
the amount of your paycheck after deductions
a person claimed as a dependent on a tax return
a person who depends on you for more than half of his or her…
Gross Pay
total salary or wages earned during the pay period
Net Pay
the amount of your paycheck after deductions
9 terms
Taxes and Other Deductions
Gross pay
Net pay
Exemption
Dependent
total salary or wages earned during the pay period
the amount of your paycheck after deductions
a person claimed as a dependent on a tax return
a person who depends on you for more than half of his or her…
Gross pay
total salary or wages earned during the pay period
Net pay
the amount of your paycheck after deductions
10 terms
taxes and other deductions
gross pay
net pay
exemption
dependent
total salary or wages earned during the pay period
the amount of your paycheck after deductions
a person claimed as a dependent on a tax return
a person who depends on you for more than half of his or her…
gross pay
total salary or wages earned during the pay period
net pay
the amount of your paycheck after deductions
Taxes & Payroll Deductions
Payroll Deductons
Paycheck
Withholding
Required payroll deductions
The required and voluntary amounts of money that are subtract…
Originally, a paycheck was a check given to an employee by an…
The process where employers deduct income taxes from their em…
The deductions an employer makes to an employee's pay each pa…
Payroll Deductons
The required and voluntary amounts of money that are subtract…
Paycheck
Originally, a paycheck was a check given to an employee by an…
Taxes and Payroll Deductions
Payroll Deductions
Paycheck
Withholding
Required Payroll Deductions
The required amount of money that are taken from an employee'…
A check given to an employee by an employer as payment for th…
Where employers deduct income taxes from their employee's pay…
Deductions an employer makes to an employee's pay check becau…
Payroll Deductions
The required amount of money that are taken from an employee'…
Paycheck
A check given to an employee by an employer as payment for th…
18 terms
Taxes & Payroll Deductions
Payroll Deductions
Paycheck
Withholding
Required Payroll Deductions
The required and voluntary amounts of money that are subtract…
Originally, a paycheck was a check given to an employee by an…
The process where employers deduct income taxes from their em…
The deductions an employer makes to an employee's pay each pa…
Payroll Deductions
The required and voluntary amounts of money that are subtract…
Paycheck
Originally, a paycheck was a check given to an employee by an…
15 terms
Taxes & Payroll Deductions
Payroll Deductions
Paycheck
Withholding
Required payroll deduction
...
...
The process where employers deduct income taxes from their em…
The deductions an employer makes to an employee's pay each pa…
Payroll Deductions
...
Paycheck
...
MMPA Deductions & Taxes
DB
DC
DD
DE
SGLI & FGLI
Dep. Dental Plan
AFRH
Mont. GI Bill
DB
SGLI & FGLI
DC
Dep. Dental Plan
27 terms
Taxes and other Payroll Deductions
progressive tax
taxable income
payroll deduction
exemption
one in which, as a person's income increases, s/he pays a hig…
gross annual income minus tax deductions minus exemptions
an amount subtracted from gross income
reduces taxable income by a specified amount for an individua…
progressive tax
one in which, as a person's income increases, s/he pays a hig…
taxable income
gross annual income minus tax deductions minus exemptions
29 terms
Tax deducted at Source
Sec 192: TDS on Salary... ( At the time…
Sec 192A: TDS on payment of accumulate…
Sec 193: Interest on securities... ( At…
Sec 194: Dividend... ( At the time of Pa…
Any person responsible for payment of salary has to deduct td…
Trustees of EPF scheme or any other person who is liable to d…
Any person liable to pay interest to resident on securities.…
Any domestic company declaring and paying dividend on equity…
Sec 192: TDS on Salary... ( At the time…
Any person responsible for payment of salary has to deduct td…
Sec 192A: TDS on payment of accumulate…
Trustees of EPF scheme or any other person who is liable to d…
14 terms
Tax Forms and Deduction
Assets
Example of asset
Liabilities
Example of liability
Item of economic value owned by an individual
House, car, money, jewelry
Amounts owed, debt
School loans, mortgage, car loans
Assets
Item of economic value owned by an individual
Example of asset
House, car, money, jewelry
109 terms
Tax Research Chapter 6: Landmark Cases - Deductions
Federal income tax was declared uncons…
Why was federal income tax declared un…
When did income tax become constitutio…
Direct tax defined
1895
Because it was a direct tax
1913, 16th amendment
tax based on census
Federal income tax was declared uncons…
1895
Why was federal income tax declared un…
Because it was a direct tax
131 terms
Tax Chapter 5: Business Deductions
code 162
ordinary
necessary
reasonable
permits a deductions for all ordinary and necessary expenses…
normal, usual, or customary in the type of business conducted…
a prudent businessperson would incur the same expense and the…
a question of fact. transactions (rent, interest, salaries) b…
code 162
permits a deductions for all ordinary and necessary expenses…
ordinary
normal, usual, or customary in the type of business conducted…
Tax: chapter 18 Deductions and Credits
Adoption Expense Credit pg 18
American Opportunity Credit pg.21
Child Tax Credit pg 19
Credit for certain retirement plan con…
Credit for qualified adoption expenses (adoption fees, court…
This credit replaces the Hope credit for 2009 and 2010 and ap…
Limited to $1,000 per child; AGI Phase outs - Single, HOH, QW…
A nonrefundable credit is available based on eligible contrib…
Adoption Expense Credit pg 18
Credit for qualified adoption expenses (adoption fees, court…
American Opportunity Credit pg.21
This credit replaces the Hope credit for 2009 and 2010 and ap…
31 terms
Tax - Chapter 6 - Deductions and Losses
{[Classifying deductions as 'for' vs.…
{[Criteria for deducting business and…
-Business or Investment Activity
-Ordinary Expense
Deductions come in two forms: For AGI (above the line) and Fr…
In order for a taxpayer to be able to deduct business and inv…
Sec 162. provides all taxpayers with a deduction for their bu…
Treasury regulations under Sec. 212 indicate that for an expe…
{[Classifying deductions as 'for' vs.…
Deductions come in two forms: For AGI (above the line) and Fr…
{[Criteria for deducting business and…
In order for a taxpayer to be able to deduct business and inv…
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