test 3 review income tax

test 3 review income tax - from the loss subtract any...

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business casualty loss reduces AGI FOR AGI know how to determine the loss for FD and PD moving expenses reduce AGI FOR AGI know what constitutes moving expenses and what traditional IRA reduces AGI FOR AGI traditional is lesser of 100 % of compensation or 5,000 and is not phased out if not an active participant roth is not deductible (has a relatively high AGI phase out) Hobby expenses up to hobby income, report hobby income before AGI, and hobby expenses as MID don't forget 2% floor passive losses up to passive income, except for the 25,000 small rental exception unused passive losses are carried over until income from passive activities or until the activity is sold. the sale of section 1244 results in a loss 100,000 of the loss would be the ordinary, the rest is capital non business bad debt is a short term capital loss capital losses are limited to 3,000 per year FOR AGI personal casualty losses are ID, subject to 100 floor and a 10% AGI floor, know how to calculate the loss
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Unformatted text preview: from the loss subtract any insurance received and also a 100 FLOOR reimbursed employee expenses are FOR but do not show up unreimbursed employees expenses are FROM but are MIDs 9.57 9.63 allocation of unreimbursed expenses due to meals and entertainment (MIDs) subject to 50% cutback (MIDs) standard mileage rate .50 or actual transportation costs parking and tols are added to standard and added in total to actual child tax credit under 17 and 1,000 per child child care credit (20%) lessor of amount spent, earned income, and 3,000 for one child or 6,000 for more calculation of AOTC adoption credit lesser of the actual costs or 13,170 unless special needs child EIC earned income credit it is for the working poor it is also refundable making work pay. credit 6.2% of income but is limited to 400 single and 800 married safe harbor rule for amounts withheld and estimated for federal taxes...
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