reg 78 a 282021

  1. ---------------------------- This credit is 20% of qualified tuition expenses paid by the taxpayer. The maximum credit allowed per year is $2,000 and is limited to 20% of the first $10,000 of expenses.
    Lifetime Learning Credit. This credit is 20% of qualified tuition expenses paid by the taxpayer. The maximum credit allowed per year is $2,000 and is limited to 20% of the first $10,000 of expenses.
  2. Lifetime Learning Credit. This credit is -------- of qualified tuition expenses paid by the taxpayer. The maximum credit allowed per year is --------- and is limited to -------- of the first ------------- of expenses.
    Lifetime Learning Credit. This credit is 20% of qualified tuition expenses paid by the taxpayer. The maximum credit allowed per year is $2,000 and is limited to 20% of the first $10,000 of expenses.
  3. ------------------------------------------ Employers may take a credit equal to 40% (reduced to 25% for employment of more than 120 hours but less than 400) of the first $6,000 paid to employees from certain targeted groups who work at least 400 hours
    Work Opportunity Tax Credit (WOTC). Employers may take a credit equal to 40% (reduced to 25% for employment of more than 120 hours but less than 400) of the first $6,000 paid to employees from certain targeted groups who work at least 400 hours
  4. Taxpayers who obtain health insurance coverage through the Health Insurance Marketplace may be eligible for the -----------------------------------------.
    Taxpayers who obtain health insurance coverage through the Health Insurance Marketplace may be eligible for the Health Insurance Premium Tax Credit.
  5. The unused foreign tax credit can be ------------------------- and -----------------------------------.
    The unused foreign tax credit can be carried back for 1 year and then carried forward for 10 years.
  6. In order for a child to be a qualifying child for the Earned Income Credit, three tests must be met: ----------, -----------, and ---------.
    In order for a child to be a qualifying child for the Earned Income Credit, three tests must be met: relationship, residency, and age.
  7. The ------------------------------------- is applied only if the tentative minimum tax exceeds the taxpayer’s regular tax liability.
    The alternative minimum tax (AMT) is applied only if the tentative minimum tax exceeds the taxpayer’s regular tax liability.
  8. Individuals use ----------------- to calculate AMT.
    Individuals use Form 6251 to calculate AMT.
  9. AMT adjustments represent either a limitation on ------------------------------- or -------------------------
    AMT adjustments represent either a limitation on itemized deductions or timing differences
  10. The IRC allows deduction for losses caused by theft or casualties, whether business or personal. However, as of 2018, personal casualty and theft losses only apply to-----------------------------and losses to the ----------------------------.
    The IRC allows deduction for losses caused by theft or casualties, whether business or personal. However, as of 2018, personal casualty and theft losses only apply to federally declared disasters and losses to the extent of casualty gains.
  11. A------------------- is either a trade or business in which the person does not materially participate or a rental activity.
    A passive activity is either a trade or business in which the person does not materially participate or a rental activity.
  12. An individual taxpayer may carry forward excess capital losses ------------------
    An individual taxpayer may carry forward excess capital losses indefinitely.
  13. Post-2017 NOLs are only carried forward but done so -----------------------.
    Post-2017 NOLs are only carried forward but done so indefinitely.
  14. When a taxpayer acquires property, his or her basis in the property is initially -------, -------------, or -------------------.
    When a taxpayer acquires property, his or her basis in the property is initially cost, transferred, or exchanged basis.
  15. ------------------ is the sum of capitalized acquisition costs.
    Cost basis is the sum of capitalized acquisition costs.
  16. -------------------------- is computed by reference to basis in the property in the hands of another. This is also commonly referred to as a carryover basis.
    Transferred basis is computed by reference to basis in the property in the hands of another. This is also commonly referred to as a carryover basis.
  17. ----------------------------- is computed by reference to basis in other property previously held.
    Exchanged basis is computed by reference to basis in other property previously held.
  18. A taxpayer must capitalize amounts paid to ---------------------- the acquisition of real or personal property.
    A taxpayer must capitalize amounts paid to facilitate the acquisition of real or personal property.
  19. A ----------------------- amount is a cost that is so small that it is not worth tracking.
    de minimis amount is a cost that is so small that it is not worth tracking.
  20. ---------------- is the sum of capitalized acquisition costs.
    Cost basis is the sum of capitalized acquisition costs.
  21. The ------------------------------------------------------ is used to recover the basis of most business and investment property placed in service after 1986.
    The Modified Accelerated Cost Recovery System (MACRS) is used to recover the basis of most business and investment property placed in service after 1986.
  22. When asset acquisition of personal property occurs mostly at the end of the year, the ------------------------------applies.
    When asset acquisition of personal property occurs mostly at the end of the year, the mid-quarter convention applies.
  23. Residential rental property is real property with at least------------- of gross rents coming from dwelling units.
    Residential rental property is real property with at least 80% of gross rents coming from dwelling units.
  24. Under MACRS, residential rental property has a straight-line rate based on a ------------------------ period.
    Under MACRS, residential rental property has a straight-line rate based on a 27 1/2-year recovery period.
  25. All property is characterized as a -------------------, unless expressly excluded.
    All property is characterized as a capital asset, unless expressly excluded.
  26. For individuals, net short-term capital gain is taxed as ---------------------.
    For individuals, net short-term capital gain is taxed as ordinary income.
  27. A ---------------------- occurs when substantially the same securities are purchased within 30 days before or after being sold at a loss.
    A wash sale occurs when substantially the same securities are purchased within 30 days before or after being sold at a loss.
  28. All -------------------------------- must be recognized unless the IRC expressly provides otherwise.
    All realized gains must be recognized unless the IRC expressly provides otherwise.
  29. Under Sec. 1211(b), a noncorporate taxpayer is allowed a deduction for capital losses in excess of capital gains limited to the lesser of the excess of capital losses over capital gains, or ---------. But this --------- limitation is ----------- for a taxpayer who is married filing separately.
    Under Sec. 1211(b), a noncorporate taxpayer is allowed a deduction for capital losses in excess of capital gains limited to the lesser of the excess of capital losses over capital gains, or $3,000. But this $3,000 limitation is $1,500 for a taxpayer who is married filing separately.
  30. The cost of certain intangibles acquired in connection with the conduct of a trade or business or income-producing activity is amortized over a ---------------------------, beginning with the month in which the intangible is acquired
    The cost of certain intangibles acquired in connection with the conduct of a trade or business or income-producing activity is amortized over a 15-year period, beginning with the month in which the intangible is acquired
  31. ------------------------------ include covenants not to compete.
    Qualified intangibles include covenants not to compete.
  32. A person who actively participates in rental real estate activity is entitled to deduct up to --------------------- in losses from the passive activity against other than passive income.
    A person who actively participates in rental real estate activity is entitled to deduct up to $25,000 in losses from the passive activity against other than passive income.
  33. The Uniform Capitalization Rules of Code Sec. 263A apply to businesses whose average gross receipts for the preceding 3 years exceed what amount?
    $26,000,000
  34. Uniform capitalization rules do not apply if the company’s average annual gross receipts for the past ------------- do not exceed -------------------------.
    Uniform capitalization rules do not apply if the company’s average annual gross receipts for the past 3 years do not exceed $26 million.
  35. Property held either for personal use or for the production of income is a -----------------------
    Property held either for personal use or for the production of income is a capital asset
  36. Land held for personal use is a ---------------------.
    Land held for personal use is a capital asset.
  37. ---------------------- are nonbusiness deductions.
    Itemized deductions are nonbusiness deductions.
  38. A return of capital is a --------------------------- that reduces a stock’s basis by the amount of the distribution.
    A return of capital is a tax-free distribution that reduces a stock’s basis by the amount of the distribution.
  39. If a shareholder’s basis is reduced to zero because of a tax-free return of capital, any excess amounts received are treated as a ----------------------.
    If a shareholder’s basis is reduced to zero because of a tax-free return of capital, any excess amounts received are treated as a capital gain.
  40. Each partner may deduct only a partnership ordinary loss ------------------------------------------------------------------------------
    Each partner may deduct only a partnership ordinary loss to the extent that the partner is at risk with respect to the partnership
Author
Joens1313
ID
354505
Card Set
reg 78 a 282021
Description
reg 78 a 282021
Updated