income tax

  1. To be alimony
    • 1. payment must be in cash
    • 2. Payment mus be made pursuant to written divorce agreement
    • 3. Payment must be received by or on behalf of spouse
    • 4. no liability fr payments after death of spouse
    • 5. not "not alimony"
    • 6. not child support
    • 7. No joint return
    • 8. Must not be members of same household
  2. Alimony test 1
    if there is a reduction in alimony within 6 months ofa child turning 18 or 21 the amount of drop is presumed to be child support
  3. Alimony Test 2
    when there are at least two reductions and atleast two children, if there is a year between 18-24 that both reductions occur and the children reach the same age within that year
  4. Annuities exclusion ratio
    Investment in K/Expected return under K

    Expected return=Pmnt to be recieved *life expectncy
  5. When is travel expense deductible
    Reasonable and necessary, away from home, and incurred in pursuit of a business
  6. Limit on charitable deductions
    • 50% of AGI unless its appreciated property then 30%
    • 50% comes first
  7. Bargan sale to charity equation
    (sales price/FMV)(adj basis)=new ADJ Basis

    sales price- New ADJ Basis=gain
  8. Capital losses
    can deduct capital losses up to capital gains plus 3k
  9. installment sale gross profit %
    gain realized/kprice
Card Set
income tax