JTD Costs 800,000 Job Expense 500,000 FAC 800,000 A/P 500,000 POC 100.0% JTD Revenue 1,000,000 Annual Revenue Entry JTD Billing 1,000,000 A/R (Billings) 400,000 CIEB - BIEC 50,000 CIEB 175,000 Revenue 625,000 nue is JTD Revenue less Year 1 recognized revenue **Note that recognized revenue is JTD Revenue l eed to be trued up each period for actual presentation on financials **Note that BIEC and CIEB are no longer needed
Annual Expense Entry Job Expense 100,000 A/P 100,000 Annual Revenue Entry A/R (Billings) 300,000 CIEB 175,000 Revenue 125,000 ess Year 1 AND Year 2 recognized revenue and is now 100% POC. JTD Costs = FAC since the job is complete and fully billed. JTD Revenue = CV = JTD Billings
R2-M1 Adjustments Above the Line Deductions to arrive at AGI Adjustments FOR AGI - Allowed by anyone, in any year, with no conditions - Above the line deductions - Deductions to arrive at AGI **NOT THE SAME AS SCH A ITEMIZED DEDUCTIONS Educator Expenses - Up to $250 of qualified expenses paid. Can be $500 if both spouses are teachers - K-12 - NO homeschooling IRA - 3 kinds: Deductible Traditional, Nondeductible Traditional and Roth - Deductible Traditional IRA - Taxed when you withdraw - Distributions taxed as ordinary income - Minimum Distributions are required to be take by 4/1 of the year following year you turn 70.5 Phaseout - Nondeductible Traditional IRA - Default with no eligible for Deductible IRA or Roth IRA - Nontaxable: The principal contribution (because you never deducted when - Taxable: Previously accumulated UNTAXED earnings - Minimum Distributions are required to be take by 4/1 of the year following year you turn 70.5
- No phaseout based on MAGI (Modified AGI) - Roth IRA - Contributions are not deductible (after tax money) - Earnings accumulate tax free while in Roth IRA - Distributions of both principal and interest are also tax free since they are q Qualified Distributions: 5 years after first contribution, after 59 1/2 - Is subject to 10% penalty if you pull it out before age 59 1/2 (Penalty Exemptions: Qualified Medical, Health Insurance Premium - Rollover from Traditional to Roth is taxable but NOT subject to 10% penalty Student Loan Interest Expense - Only $2.5K a year allowed. Excess of $2.5 is personal interest and NOT deductible (disa - Phaseout exists - Dependent cannot claim the adjustment - Taxpayer must be legally obligated to pay the loan - Must be for qualified education expenses Health Savings Account - High deductible health insurance - Pretax contribution $3.5K up to $7K for families (indexed) - Amounts increase by $1K for those over 55 years old in that tax year - Can't make contributions once covered by Medicare A or B Moving Expenses - Only allowed for Armed Forces on active duty and have to move per orders Self Employment Tax (50%) - Pay both EE and ER FICA so the ER part is allowed as a deduction Self Employment Health Insurance (100%) - May deduct all of the medical insurance premiums for taxpayer, spouse and dependen Keogh (SE Retirement Plan)
Penalty on Early Withdrawal of Savings (Interest Income): Interest Forfeited - Do not net against interest income - Ex: pulling money out of a CD before maturity Alimony (divorce before 2019)
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- Spring '16
- The Land, Taxation in the United States, JTD Revenue