reg 3456 a 212021

  1. The interest on the savings account is included in ------------
    The interest on the savings account is included in gross income
  2. The dividends on life insurance policies are generally considered a return of premiums or capital and are--------------------------------------------------
    The dividends on life insurance policies are generally considered a return of premiums or capital and are not included in gross income
  3. The -------------------- prevents parents from avoiding taxes by transferring large gifts of stock.
    The kiddie tax prevents parents from avoiding taxes by transferring large gifts of stock.
  4. An employee who receives $20 or more in tips in a month (as a result of working for one employer, and not combined from several jobs) must report the total tips to the employer by the ----------------------------------------. These tips are treated as paid when the report is made to the employer.
    An employee who receives $20 or more in tips in a month (as a result of working for one employer, and not combined from several jobs) must report the total tips to the employer by the 10th day of the next month. These tips are treated as paid when the report is made to the employer.
  5. A claim for refund of erroneously paid income taxes, filed by an individual before the statute of limitations expires, must be submitted on Form
    1040X
  6. A claim for refund of previously paid income taxes is made by filing an amended return on Form ------------- within the appropriate statute of limitations period.
    A claim for refund of previously paid income taxes is made by filing an amended return on Form 1040X within the appropriate statute of limitations period.
  7. A claim for a refund generally must be filed within ---------- from the due date of the return (April 15, plus the filing extension time) or ------------ from the payment of the tax, whichever is later.
    A claim for a refund generally must be filed within 3 years from the due date of the return (April 15, plus the filing extension time) or 2 years from the payment of the tax, whichever is later.
  8. --------------------------- typically relates to moving income and therefore the accompanying tax liability from one family member to another who is subject to a lower marginal rate or moving income between entities and their owner(s).
    Income shifting typically relates to moving income and therefore the accompanying tax liability from one family member to another who is subject to a lower marginal rate or moving income between entities and their owner(s).
  9. Hiring a family member in order to increase business expenses and increase family global net income .... is an example of what?
    income Shifting
  10. Income is reported when it can be estimated with --------------------------------------. Adjustments are made in a later year for any differences between the actual amount and the previously reported amounts.
    Income is reported when it can be estimated with reasonable accuracy. Adjustments are made in a later year for any differences between the actual amount and the previously reported amounts.
  11. Income is reported when it can be estimated with reasonable accuracy. Adjustments are made in a later year for any differences between the ------------------------------------------------------------------------
    Income is reported when it can be estimated with reasonable accuracy. Adjustments are made in a later year for any differences between the actual amount and the previously reported amounts.
  12. Under the ---------------------------------------------, an item is included in gross income when a person has an unqualified right to immediate possession.
    Under the doctrine of constructive receipt, an item is included in gross income when a person has an unqualified right to immediate possession.
  13. The ------------------------------------------ indicates that a taxpayer receiving payments under a claim of right and without restrictions on its use includes the payment in income in the year received even though the right to retain the payment is not yet fixed or the taxpayer may later be required to return it.
    The claim-of-right doctrine indicates that a taxpayer receiving payments under a claim of right and without restrictions on its use includes the payment in income in the year received even though the right to retain the payment is not yet fixed or the taxpayer may later be required to return it.
  14. If a corporation declares a dividend in December and pays such that the shareholders receive it in January, the dividend --------------------------------------------------------
    If a corporation declares a dividend in December and pays such that the shareholders receive it in January, the dividend is not treated as received in December.
  15. Prepaid rent is included in --------------------------- when received (the same as for cash-method and accrual-method taxpayers).
    Prepaid rent is included in gross income when received (the same as for cash-method and accrual-method taxpayers).
  16. Tips are gross income when reported. An employee who receives $20 or more in tips a month working for any employer must -----------------------------------------------------------------------------------------------------------
    Tips are gross income when reported. An employee who receives $20 or more in tips a month working for any employer must report the tips to the employer by the 10th day of the following month.
  17. Purchased merchandise is valued at invoice price reduced by ----------------- and increased by --------------------, such as freight. Cash discounts may instead be treated as income.
    Purchased merchandise is valued at invoice price reduced by trade discounts and increased by handling charges, such as freight. Cash discounts may instead be treated as income.
  18. Produced merchandise cost must be calculated using the------------------------------------------------------
    Produced merchandise cost must be calculated using the full absorption costing method
  19. The ------------------------------------------ accounts for (reports) receipts and expenditures in the tax year in which the contract is completed.
    The completed-contract method accounts for (reports) receipts and expenditures in the tax year in which the contract is completed.
  20. The ------------------------------------------------ reports as income that portion of the total contract price that represents the percentage of total work completed in the year.
    The percentage-of-completion method reports as income that portion of the total contract price that represents the percentage of total work completed in the year.
  21. For a cash method taxpayer, receipt or constructive receipt by an agent is i------------------- to the principal.
    For a cash method taxpayer, receipt or constructive receipt by an agent is imputed to the principal.
  22. Absent meeting a gross receipts exception, a taxpayer that maintains inventory must use the -------------------- with regards to purchases and sales.
    Absent meeting a gross receipts exception, a taxpayer that maintains inventory must use the accrual method with regards to purchases and sales.
  23. Changes in the tax year of a taxpayer generally require the consent of the IRS. In the year the change is made, -------------------------------------------------
    Changes in the tax year of a taxpayer generally require the consent of the IRS. In the year the change is made, a short tax year return is required.
  24. Changes in the tax year of a taxpayer generally require the ------------------------------------. In the year the change is made, a short tax year return is required.
    Changes in the tax year of a taxpayer generally require the consent of the IRS. In the year the change is made, a short tax year return is required.
  25. If an employer transfers property to an employee at less than its FMV (bargain purchase), the difference-----------------------------------------------------------------------------------------------------
    If an employer transfers property to an employee at less than its FMV (bargain purchase), the difference may be income to the employee and treated as compensation for personal services.
  26. Scholarships or fellowships received for------------------------------------------------- are gross income.
    Scholarships or fellowships received for room, board, or incidental expenses are gross income.
  27. Qualified reimbursements for moving expenses incurred by ---------------------------------------- are excluded from gross income.
    Qualified reimbursements for moving expenses incurred by members of the military are excluded from gross income.
  28. Ordinary dividends are reported on Form 1040 with Schedule B attached if the total is over-------------------------------------------------------------------------------------------------------------------
    Ordinary dividends are reported on Form 1040 with Schedule B attached if the total is over $1,500 or the taxpayer received, as a nominee, ordinary dividends that actually belong to someone else.
  29. -------------------------------- are an exclusion from the gross income of the recipient and are not deductible by the payor. These payments are not alimony.
    Child support payments are an exclusion from the gross income of the recipient and are not deductible by the payor. These payments are not alimony.
  30. Child support payments are an exclusion from the -------------------------------------------------------------------------------. These payments are not alimony.
    Child support payments are an exclusion from the gross income of the recipient and are not deductible by the payor. These payments are not alimony.
  31. Net earnings reported on ------------------------------------- or other schedules used for reporting self-employment income are included in gross income.
    Net earnings reported on Schedule C (Form 1040) or other schedules used for reporting self-employment income are included in gross income.
  32. Bartered services or goods are included in--------------------------------------------------------------------------received in exchange for the services.
    Bartered services or goods are included in gross income at the fair market value of the item(s) received in exchange for the services.
  33. Gross income includes discharge (cancellation) of indebtedness when a -------------------------------------------------------------------------------
    Gross income includes discharge (cancellation) of indebtedness when a debt is canceled in whole or part for consideration.
  34. The IRC (Internal Revenue Code) defines gross income (GI) as --------------------------------------------------------------------------------
    The IRC (Internal Revenue Code) defines gross income (GI) as all income from whatever source derived except as otherwise provided.
  35. Discharge of indebtedness can result in -----------------------.
    Discharge of indebtedness can result in gross income.
  36. An item of income generally constitutes gross income unless a provision of the ------- specifically states that all or part of it is not treated as income, i.e., is excluded.
    An item of income generally constitutes gross income unless a provision of the IRC specifically states that all or part of it is not treated as income, i.e., is excluded.
  37. Voluntary transfers from employer to employee are presumed to be -----------------------------------.
    Voluntary transfers from employer to employee are presumed to be compensation, not gifts.
  38. Proceeds of a life insurance policy paid by reason of the death of the insured are -------------------- from gross income.
    Proceeds of a life insurance policy paid by reason of the death of the insured are excluded from gross income.
  39. The value of improvements made by the real property lessee is excludable by the lessor unless the ---------------------------------------------------------------------------
    The value of improvements made by the real property lessee is excludable by the lessor unless the lessee provided the improvements in lieu of rent.
  40. A sole proprietor generally reports all self-employment income and expense on -----------------------
    A sole proprietor generally reports all self-employment income and expense on Schedule C.
  41. An activity that results in a profit in any ------------------------------------------------------------------- is presumed not to be a hobby.
    An activity that results in a profit in any 3 of 5 consecutive tax years (2 of 7 for the breeding and racing of horses) is presumed not to be a hobby.
  42. An expense must be both -------------------------------------- to be deductible
    An expense must be both ordinary and necessary to be deductible
  43. Advance rental payments may be deducted by the lessee only ---------------------------------------------------
    Advance rental payments may be deducted by the lessee only during the tax periods to which the payments apply.
  44. Generally, rental property activity is reported on -------------------------for individuals.
    Generally, rental property activity is reported on Schedule E for individuals.
  45. Although taxpayers may immediately deduct start-up costs, the immediate deduction is only for ----------------------------------------------, and the deduction -----------------------------
    Although taxpayers may immediately deduct start-up costs, the immediate deduction is only for the taxable year in which the business begins (i.e., not just any year they occur), and the deduction is limited to $5,000.
  46. The deduction for business gifts is limited to ---------------------- per year.
    The deduction for business gifts is limited to $25 per recipient per year.
  47. Meal expenses incurred in carrying on a trade or business are deductible up to----------------------.
    Meal expenses incurred in carrying on a trade or business are deductible up to a 50% limit.
  48. The general rule is that, to be deductible, the amount must be both -----------------------------------.
    The general rule is that, to be deductible, the amount must be both ordinary and necessary.
  49. ------------------------------ taxes are paid through estimated payments, not withholding.
    Self-employment taxes are paid through estimated payments, not withholding.
  50. FICA contributions made by the employee are ---------------------- by the employee, while those made by the employer are -----------------------------------.
    FICA contributions made by the employee are not tax deductible by the employee, while those made by the employer are deductible by the employer.
  51. All death benefits received by the beneficiaries or the estate of an employee from or on behalf of an employer are ----------------------------------------
    All death benefits received by the beneficiaries or the estate of an employee from or on behalf of an employer are included in gross income.
  52. ------------------------------------- are adjustments deducted from gross income to arrive at adjusted gross income (AGI) for individual taxpayers.
    Above-the-line deductions are adjustments deducted from gross income to arrive at adjusted gross income (AGI) for individual taxpayers.
  53. Elementary (primary) and middle/high (secondary) school educators may claim an above-the-line deduction for unreimbursed expenses paid or incurred for books and supplies used in the classroom up to ------- annually.
    Elementary (primary) and middle/high (secondary) school educators may claim an above-the-line deduction for unreimbursed expenses paid or incurred for books and supplies used in the classroom up to $250 annually.
  54. IRA - For 2020, contributions are fully deductible (subject to certain qualifying rules and limitations) up to the ---------------------------------------------------------------------------------------------
    IRA - For 2020, contributions are fully deductible (subject to certain qualifying rules and limitations) up to the lesser of $6,000 ($7,000 for taxpayers age 50 and over) or 100% of includible compensation.
  55. Contributions to a Roth IRA are -----------------------.
    Contributions to a Roth IRA are nondeductible.
  56. --------------------------------------- are deducted from gross income to arrive at adjusted gross income (AGI).
    Above-the-line deductions are deducted from gross income to arrive at adjusted gross income (AGI).
  57. Taxable income is AGI minus ---------------------------------.
    Taxable income is AGI minus below-the-line deductions.
  58. Alimony paid pursuant to a pre-2019 divorce is an ----------------------------------------------------
    Alimony paid pursuant to a pre-2019 divorce is an above-the-line deduction.
  59. Alimony paid pursuant to a pre-2019 divorce is ----------------- to the recipient and ---------------- by the payor
    Alimony paid pursuant to a pre-2019 divorce is gross income to the recipient and deductible by the payor
  60. Investment interest may be deducted only to the---------------------------------------, which is any excess of investment income over investment expense.
    Investment interest may be deducted only to the extent of net investment income, which is any excess of investment income over investment expense.
  61. The ------ is the last deduction before determining a taxpayer’s taxable income.
    The QBID is the last deduction before determining a taxpayer’s taxable income.
  62. A specified service trade or business (SSTB) is any trade or business in which the principal asset is the reputation or skill of one or more of its employees. Treasury regulations have interpreted this provision to mean businesses with income from (1) -----------------, (2) -----------------------------, and (3) --------------------.
    A specified service trade or business (SSTB) is any trade or business in which the principal asset is the reputation or skill of one or more of its employees. Treasury regulations have interpreted this provision to mean businesses with income from (1) endorsements, (2) compensation for likeness, and (3) appearance fees.
Author
Joens1313
ID
354433
Card Set
reg 3456 a 212021
Description
reg 3456 a 212021
Updated