CPA REG 2024
Agency responsible for determining the CPE requirements for CPAs - ✔✔Board of Accountancy for the
state in which the licensed CPA practices
An S Corp is not permitted to take a deduction for - ✔✔Separately stated items (charitable
contributions, tax credits, certain income deductions)
AOC credit - ✔✔For first 4yrs of college. Max credit of up to $2,500 per student, per year
100% of first $2K
25% of next $2K
Capital gains/losses result from - ✔✔Transactions to purchase/sale stocks, bond, real estate, and other
investments; reported on schedule D
Cash Charitable contributions AGI limit - ✔✔60% of AGI
Casualty deductions loss is calculated as - ✔✔The lower of - drop in FMV or basis
less any insurance reimbursement, less $100 per event, and subject to a 10% AGI limitation
Casualty losses for corporations - ✔✔All activities of a corporation are business activities; corporations
may deduct their losses fully and do not have to reduce casualty losses by a floor or AGI
Child is subject to kiddie tax if - ✔✔Unearned income is above $2,500
Child tax credit - ✔✔a $2,000 tax credit given for each qualifying child under 17
Contributions made to an IRA are treated as - ✔✔An adjustment to arrive to AGI
Corporation charitable contributions deduction formula - ✔✔Adjusted taxable income x 10%
, Corporation excess charitable deductions can be carried fwd - ✔✔5 years
Corporation NOL carry back and forward - ✔✔No carry back, carry fwd indefinitely but can only offset
up to 80% of taxable income
Costs to install medically prescribed facilities or remove structural barriers at home for physically
handicapped also qualify for the medical expense deduction, however - ✔✔any increase in the FMV of
the home must be subtracted
Dependent and child care credit - ✔✔Credit for expenses for dependent child under 13yrs or disabled
dependent, subject to a 20%-35% percentage based on AGI
Dependent and child care credit percentage determination - ✔✔35% if AGI is $15K or less
Reduce credit by 1% for each $2K AGI over $15K
20% if AGI is greater than $43K
Earned income credit - ✔✔a credit used to reduce tax liability for low-income taxpayers. Taxpayers must
file MFJ and not have more than $11K in investment income
Estimated tax payments for other than large corporations - ✔✔The less of -
100% of CY tax liability
100 of PY tax liability
Estimated tax payments large corporations (taxable income of >$1M) - ✔✔Must equal 100% of CY tax
liability
Foreign tax itemized deduction vs foreign tax credit - ✔✔Taxpayers must choose only one. It is more
beneficial to take the credit, as it reduces tax liability on a dollar for dollar basis
Fully refundable tax credits - ✔✔Premium tax credit & Earned Income Credit
Agency responsible for determining the CPE requirements for CPAs - ✔✔Board of Accountancy for the
state in which the licensed CPA practices
An S Corp is not permitted to take a deduction for - ✔✔Separately stated items (charitable
contributions, tax credits, certain income deductions)
AOC credit - ✔✔For first 4yrs of college. Max credit of up to $2,500 per student, per year
100% of first $2K
25% of next $2K
Capital gains/losses result from - ✔✔Transactions to purchase/sale stocks, bond, real estate, and other
investments; reported on schedule D
Cash Charitable contributions AGI limit - ✔✔60% of AGI
Casualty deductions loss is calculated as - ✔✔The lower of - drop in FMV or basis
less any insurance reimbursement, less $100 per event, and subject to a 10% AGI limitation
Casualty losses for corporations - ✔✔All activities of a corporation are business activities; corporations
may deduct their losses fully and do not have to reduce casualty losses by a floor or AGI
Child is subject to kiddie tax if - ✔✔Unearned income is above $2,500
Child tax credit - ✔✔a $2,000 tax credit given for each qualifying child under 17
Contributions made to an IRA are treated as - ✔✔An adjustment to arrive to AGI
Corporation charitable contributions deduction formula - ✔✔Adjusted taxable income x 10%
, Corporation excess charitable deductions can be carried fwd - ✔✔5 years
Corporation NOL carry back and forward - ✔✔No carry back, carry fwd indefinitely but can only offset
up to 80% of taxable income
Costs to install medically prescribed facilities or remove structural barriers at home for physically
handicapped also qualify for the medical expense deduction, however - ✔✔any increase in the FMV of
the home must be subtracted
Dependent and child care credit - ✔✔Credit for expenses for dependent child under 13yrs or disabled
dependent, subject to a 20%-35% percentage based on AGI
Dependent and child care credit percentage determination - ✔✔35% if AGI is $15K or less
Reduce credit by 1% for each $2K AGI over $15K
20% if AGI is greater than $43K
Earned income credit - ✔✔a credit used to reduce tax liability for low-income taxpayers. Taxpayers must
file MFJ and not have more than $11K in investment income
Estimated tax payments for other than large corporations - ✔✔The less of -
100% of CY tax liability
100 of PY tax liability
Estimated tax payments large corporations (taxable income of >$1M) - ✔✔Must equal 100% of CY tax
liability
Foreign tax itemized deduction vs foreign tax credit - ✔✔Taxpayers must choose only one. It is more
beneficial to take the credit, as it reduces tax liability on a dollar for dollar basis
Fully refundable tax credits - ✔✔Premium tax credit & Earned Income Credit
