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Regulation Ch7
Federal Taxation
13
Accounting
Professional
08/16/2009

Additional Accounting Flashcards

 


 

Cards

Term
Tax Formula Outline for Individuals (1040)
Definition

Gross income

- "Above the line" deductions

Adjusted gross income

- Total itemized deductions (or standard deduction)

- Exemptions

Taxable income

x Tax rates

- Tax credits

Tax liability

Term
 Examples of Income (1040)
Definition

1. Wages, salaries, tips

2. Interest

3. Dividend income

4. Income other than wages, dividends, and interest

    a. state and local income tax refunds

    b. alimony received

    c. business income or loss

    d. capital gain or loss

    e. other gains or losses

    f. taxable IRA distributions, pensions, and annuities

    g. Rents, royalties, partnerships, S corporations, estates, trusts, etc.

    h. Unemployment compensation, SS

    i. Other

Term
Less "Above the line" Deductions (1040)
Definition

1. One-half of self-employment tax

2. Moving expenses

3. Self-employed health insurance deduction

4. IRA deduction

5. Payments to a Keogh retirement plan

6. Penalty on early withdrawal of savings

7. Student loan interest deduction

8. Alimony paid

9. Tuition and fees deduction

10. Health savings account deduction

Term

Adjusted Gross Income

Less Itemized Deductions (1040)

Definition

1. Medical and dental expenses

2. Taxes

3. Interest expense

4. Contributions

5. Casuality and theft losses

6. Miscellaneous

a. subject to 2% of AGI limitation

b. Not subject to 2% of AGI limitation

Term
Additional Taxes (1040)
Definition

1. Alternative minimum tax

2. Parents' election to report child's interest and dividends

3. Lump-sum distribution from qualified retirement plans

Term
Tax Credits (1040)
Definition

1. General business credit

    a. Investment credit

    b. Alcohol fuels credit

    c. Low-income housing credit

    d. Disable access credit

    e. Employer social security credit.

2. Credit for the elderly or the disabled

3. Credit for child and dependent care expenses

4. Child tax credit

5. Education credits

6. Adoption credit

7. Foreign tax credit

8. Credit for prior year minimum tax

 

Term
Tax Formula Outline for Partnerships(1065)
Definition
Term
 Examples of Partnerships Income (1065)
Definition

1. Gross sales less returns and allowances

2. Less cost of goods sold

3. Gross profit

4. Ordinary income from other partnerships and fiduciaries

5. Net farm profit

6. Ordinary gain or loss (including depreciation recapture)

7. Other

Term
Less Deductions for Partnerships (1065)
Definition

1. Salaries and wages (other than to partners)

2. Guaranteed payments to partners

3. Rents

4. Interest expense

5. Taxes

6. Bad debts

7. Repairs

8. Depreciation

9. Depletion

10. Retirment plans

11. Employee benefit program contributions

Term
Schedule K from Partnerships (1065)
Definition

1. Ordinary income (loss) from trade or business activity

2. Income (loss) from rental real estate activity

3. Income (loss) from other rental activity

4. Portfolio income

    a. Interest

    b. Dividends

    c. Royalties

    d. Net short-term capital gain (loss)

    e. Net long-term capital gain (loss)

    f.  Other portfolio income

5. Guaranteed payments

6. Net gain (loss) under Sec. 1231 (other casualty or theft)

7. Other

8. Charitable contributions

9. Sec. 179 expense deduction

10. Deductions related to portfolio income

11. Other

12. Credits

      a. Credit for income tax withheld

      b. Low-income housing credit

      c. Qualified rehabilitatoin expenditures related to rental real estate

      d. Credits related to rental real estate activities.

13. Other

14. a. Net earnings (loss) from self-employment

      b. Gross farming or fishing income

      c. Gross nonfarm income

15. Tax preference items

      a. Depreciation adjustment on property  placed in service after 12/31/1986

      b. Tax-exempt private activity bond interest

16. Investment interest expense

17.  Foreign income taxes

 

Term
Tax Formula Outline for Corporation(1120)
Definition

A. Gross Income

    1. Gross sales less returns and allowances

    2. Less cost of goods sold

    3. Gross profit

    4. Dividends

    5. Interest

    6. Gross rents

    7. Gross royalties

    8. Net capital gains

    9. Ordinary gain or loss

    10. Other income

Term
Less Deductions for Corporations (1120)
Definition

1. Compensation of officers

2. Salaries and wages (net of jobs credit)

3. Repairs

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