1 of 78
Definition
automatically taxed at LTCG rates, regardless of how long the
individual owned the investment prior to the distribution
can result in an individual paying tax on an investment that has lost
value
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stock dividends shareholder gains distributions
dividend distributions capital gains distributions
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2 of 78
,Definition
the deadline to fix an excess salary deferral is by 4/15 with no
extensions (have to fix excess contribution + any earnings or losses
distributed to account_
the excess deferral amount is included in the individuals income in
the year they make the excess deferral AND the excess deferral is
taxed again when it is distributed from the plan
penalty is double taxation!
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excess contributions to
capital gains distributions
employer plans
excess contributions to iras scholarships and tax credits
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, 3 of 78
Definition
benefit from lower "capital gains" tax rates if they meet specific
criteria:
must be paid by a US corporation or a qualified foreign corporation,
and the stock needs to be held for more than 60 days within the 121
day period around the ex-dividend date
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qualified dividends ordinary dividends
long term capital gains nonqualified dividends
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4 of 78
Definition
as income exceeds the applicable threshold, the type of business
owned becomes a factor in calculating qbi
specified service trade or business (SSTB) - categories include
health, law, accounting, actuarial science, performing arts,
consulting service, athletics, services based on skill or reputation of
employees - financial services included
QBI for SSTBs
, good news - after brief phase out range of $100k for married and
$50k for all other filers, calculation is easy - the qbi deduction is
always 0
non-SSTB - if they own a NSSTB and earn income above the phase
out range, it can eliminate the QBI deduction, but they have the
potential to save all or a part of the deduction
the amount of the qbi deduction that can be "saved by a high
income owner of a NSSTB is determined by analyzing:
-wages paid by the business AND
-depreciable property owned by the business
2 formulas - the greater of these = the amount of QBI that can be
"saved" by a high income NSSTB
formula 1: 50% x all wages paid by business, including business
owner's wages
formula 2: 25% of all wages paid by the business PLUS 2.5% of the
unadjusted basis of depreciable property immediately after
acquisition (before depreciation)
Give this one a try later!
1031 exchanges and personal
Incomplete Gift Non-Grantor Trust
residences
coordinating contributions among qbi deduction for high income
employer plans business owners
Don't know?
5 of 78
Definition
automatically taxed at LTCG rates, regardless of how long the
individual owned the investment prior to the distribution
can result in an individual paying tax on an investment that has lost
value
Give this one a try later!
stock dividends shareholder gains distributions
dividend distributions capital gains distributions
Don't know?
2 of 78
,Definition
the deadline to fix an excess salary deferral is by 4/15 with no
extensions (have to fix excess contribution + any earnings or losses
distributed to account_
the excess deferral amount is included in the individuals income in
the year they make the excess deferral AND the excess deferral is
taxed again when it is distributed from the plan
penalty is double taxation!
Give this one a try later!
excess contributions to
capital gains distributions
employer plans
excess contributions to iras scholarships and tax credits
Don't know?
, 3 of 78
Definition
benefit from lower "capital gains" tax rates if they meet specific
criteria:
must be paid by a US corporation or a qualified foreign corporation,
and the stock needs to be held for more than 60 days within the 121
day period around the ex-dividend date
Give this one a try later!
qualified dividends ordinary dividends
long term capital gains nonqualified dividends
Don't know?
4 of 78
Definition
as income exceeds the applicable threshold, the type of business
owned becomes a factor in calculating qbi
specified service trade or business (SSTB) - categories include
health, law, accounting, actuarial science, performing arts,
consulting service, athletics, services based on skill or reputation of
employees - financial services included
QBI for SSTBs
, good news - after brief phase out range of $100k for married and
$50k for all other filers, calculation is easy - the qbi deduction is
always 0
non-SSTB - if they own a NSSTB and earn income above the phase
out range, it can eliminate the QBI deduction, but they have the
potential to save all or a part of the deduction
the amount of the qbi deduction that can be "saved by a high
income owner of a NSSTB is determined by analyzing:
-wages paid by the business AND
-depreciable property owned by the business
2 formulas - the greater of these = the amount of QBI that can be
"saved" by a high income NSSTB
formula 1: 50% x all wages paid by business, including business
owner's wages
formula 2: 25% of all wages paid by the business PLUS 2.5% of the
unadjusted basis of depreciable property immediately after
acquisition (before depreciation)
Give this one a try later!
1031 exchanges and personal
Incomplete Gift Non-Grantor Trust
residences
coordinating contributions among qbi deduction for high income
employer plans business owners
Don't know?
5 of 78
