alternative depreciation method o limits of deductibility for luxury automobiles o bonus deprecation 197-provided depreciation deduction for certain intangible assets-usually purchased not created, 15 yr amortization period problems of property used partly for biz and personal- usualy allocated proportionately 280f limits deductions for automobiles- if not using for more than 50% for biz use the 168 G slower depreciation for biz depreciation deductible interest o only some mtg interest is deductible o interest to carry investments onl deductible to esxtent of income “at risk” deduction stuff losses from passive activites can be deducted to extent of income from passive activity “ bad debt” o biz vs non biz o ordinary v capital losses itemized deductions o married tax o limitations on state/local tax o half of those itemized in 2017 now want to in 2018 theories of deductiilit of state/local tax foregin tax credits- why more valuable than simply deducting forign tax casualty losses o rules, o now its only from natural disaster “charitable contribution o theories
o gift to charity can be deductible- must be a gift- duberstain, not a gift to the extend of a the quid pro quo 170 E- gifts of appreciated property and when it applies o i.e. if give appreciated property to public charity- can deduct value of peroeprty if it would have generatd capital gain if you woulda sold it home interest deductions o now upto 750k aggreates (up to two homes-bathroom and kitchen ) o b4 2017 could deduct home equity loan interest divorce/separation o b4 2019 alimony is deductible, child support and property settlements are not results in moe money fore formaly married couple now living in seperae households 1041- gift of appreciated property to spouse of former spouse incident to divorce o treated as gift, no gain to person parting with property, recipient gets carry over basis what is a capital asset- at a superficial level 199A why its in the code- give non incorporated businesses a reason to stay non incorp if they wanted (since corp tax rates are lowering, inventivizing ppl to incorp), and to encourage entrepreneurialism and small biz calculation- only complicated if income is over threshold 350k for married, 157,500 for non married for exam-person will be not at threshold deduction would be 20% of income from the biz o 2 limits (wont apply if below threshold..i.e. exam) doesn’t apply for certain time of biz’s if above a certain amount if over threshold amount, you get higher of 50% of salary you pay to others or….. (to contribute to economic growth through this deduction) 2 types of taxable approaches to biz entities o c-corp separate tax payers, distribute their profits to shareholders (sort of a double tax) o pass-thru regime, like a sole proprietorship NOT ON EXAM educational expenses tax system and healthcare
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- Fall '19
- Taxation in the United States