Term
TAX LIABILITY (short version) |
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Definition
- (Taxable Income* Taxpayer's Rate) - Credits
- Solve for Taxable Income
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Term
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Definition
AGI - Personal Exemptions - (Greater of Itemized dds or the Standard dd) |
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Term
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Definition
| Gross Income - Above the line dds. |
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Term
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Definition
| "All income from whatever source derived (Ordinary Income and Capital Gain Income)." Glenshaw Glass |
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Term
TAX LIABILITY (long version) |
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Definition
| Ordinary income - Above the line dds - Personal Exemptions - (Greater of Itemized/Standard dd)* OI tax rate + (Net Capital Gain*CG Rate) - Credits |
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Term
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Definition
- Receipts
- Gain or Loss from Sale, Exchange, Disposition
- Expenses
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Term
Category I: Receipts/Inflows that might Consitute Ordinary Income |
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Definition
- Compensation for services
- Interest
- DOI
- Annuities
- Life Insurance
- Damages/Other Recoveries
- Transfers Incident to Divorce
- Scholarships
- Imputed Income
- Rents, Royalites, Windfalls, Illegal Income
- Gifts
- Inheritances, Bequests, Devises
- Net Short Term Capital Gain
- Gain from Sale or Exchange of non-Capital Asset
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Term
§61 - Compensation for Services |
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Definition
- Cash & Unrestricted Property
- Noncash Benefits
- Property Subject to Substantial Risk of Forfeiture (§83)
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Term
§ 83 - Property Subject to Substantial Rosk of Forfeiture |
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Definition
Includable as OI = FMV - amount paid (if any)
- FMV calculated when---property becomes transferrable, OR not subject to substantial risk of forfeiture (conditioned upon some future performance of substantial services) - 83(a)
- One can elect to take into income in year received - 83(b), however, if property is later forfeited, dd NOT allowed.
Stock options - Unless FMV ascertainable upon issuance, not taken into income until exercise and income = Amount of Discount. i.e. FMV at time of exercise - option issuance price
Incentive Stock Options § 422 - see ISO in Capital Gain |
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Term
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Definition
- Meals and Lodging
- Fringe Benefits
- Reimbursements for Medical Expenses
- Group Term Life Insurance
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Term
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Definition
Excludable from income where:
- the MEALS are furnished on the business premises of the employer, OR
- the employee is required to accept such LODGING on the business premises as condition of his employment
Cash allowance for meals NOT excludable - Kowalski.
Condition of employment may include lodging for the "convenience of the employer." Benaglia.
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Term
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Definition
Excludable from income under § 132 if:
- No-additional-cost service (i.e., to the employer for furnishing the service)
- Qualified employee discounts (may not exceed the gross percentange profit of the employer, spouse considered employee for this one § 132(h)(2)(A)).
- working condition fringes
- de minimus fringes (i.e. small meals)
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