CPA Reg 2024
- ANS
Refundable Tax Credits - ANSChild Tax Credit
Earned Income Credit
Federal Income Tax Withheld
Excess Social Security Withheld
American Opportunity (40% refundable)
Penalty for underpayment of estimated taxes - ANSNo penalty if owed amount is less than
$1,000
Child and Dependent Care Credit - ANS- Nonrefundable
- Child must be under 13
- Expenses are limited to lowest earned income of either spouse
- Depending on AGI you get ~20% of expenses covered
- maximum is 3,000
Retirement Savings Contribution Credit - ANS- Nonrefundable
- Covers up to $2,000 for contributions to Traditional or Roth
Excess Social Security Withheld - ANSRefundable if withholdings were made by more than
one employer
Safe Harbor for penalty for underpayment of estimated taxes - ANSThe lesser of:
90% of the tax on current year's return
OR
110% of the tax on last year's return (if AGI is >150k, otherwise 100%)
Donee's Basis of Property - ANSException kicks in when FMV < NBV
Scenario 1 for Donee's Basis - ANSSales Price > NBV
use NBV as basis
Scenario 2 for Donee's Basis - ANSSales Price < FMV
use FMV as basis
Scenario 3 for Donee's Basis - ANSSales Price is in between FMV and NBV
Sales Price is Basis - no G/L
Basis for Depreciation of Transferred Property - ANSLesser of FMV and original Basis
, Tax Basis for G/L for Transferred Property - ANSIf there is a Gain: Basis is adjusted basis at
time of sale
If there is a Loss: Take lesser of Basis and FMV at Conversion, then deduct depreciation
Inherited Property: LT or ST - ANSAlways LT. No matter what
Nonresidential Property - ANSDepreciated over 39 years, using mid month depreciation
Residential Property - ANSDepreciated over 27.5 Years, using mid month convention
Mid Month Convention MACRS - ANSStraight-line, Half the month of sale and purchase
MACRS 5 year property includes - ANSAutomobiles, light trucks, computers, and copiers
MACRS 7 year property includes - ANSFurniture and fixtures, machinery, and equipment
Midquarter convention is used when - ANSMore than 40% of assets are placed into service
in Q4
Intangible assets are amortized over - ANS15 years (180 Months)
Bonus Depreciation Limitation - ANSAssets converted from personal - business cannot use
bonus depreciation
Assets received as gift are also not eligible
Inherited Property also not eligible
Casualty Loss for C Corps - ANSPartially Destroyed: lesser of:
- NBV of property before loss
- Decline in value after loss
Fully Destroyed:
- NBV of property before loss
Deduct Insurance reimbursement for each
Organizational and Start-Up Costs - ANSDeduct up to 5k of each
If expenses are over 50k (e.g. 51k) minimize deduction $ for $ (e.g. 4)
Excess costs can be amortized over 15 years
Capital Loss Deduction for Corporations - ANS3k for individuals is not allowed
- losses can be used to offset gains
- excess can be carried back 3 years
- and forward 5 years
- ANS
Refundable Tax Credits - ANSChild Tax Credit
Earned Income Credit
Federal Income Tax Withheld
Excess Social Security Withheld
American Opportunity (40% refundable)
Penalty for underpayment of estimated taxes - ANSNo penalty if owed amount is less than
$1,000
Child and Dependent Care Credit - ANS- Nonrefundable
- Child must be under 13
- Expenses are limited to lowest earned income of either spouse
- Depending on AGI you get ~20% of expenses covered
- maximum is 3,000
Retirement Savings Contribution Credit - ANS- Nonrefundable
- Covers up to $2,000 for contributions to Traditional or Roth
Excess Social Security Withheld - ANSRefundable if withholdings were made by more than
one employer
Safe Harbor for penalty for underpayment of estimated taxes - ANSThe lesser of:
90% of the tax on current year's return
OR
110% of the tax on last year's return (if AGI is >150k, otherwise 100%)
Donee's Basis of Property - ANSException kicks in when FMV < NBV
Scenario 1 for Donee's Basis - ANSSales Price > NBV
use NBV as basis
Scenario 2 for Donee's Basis - ANSSales Price < FMV
use FMV as basis
Scenario 3 for Donee's Basis - ANSSales Price is in between FMV and NBV
Sales Price is Basis - no G/L
Basis for Depreciation of Transferred Property - ANSLesser of FMV and original Basis
, Tax Basis for G/L for Transferred Property - ANSIf there is a Gain: Basis is adjusted basis at
time of sale
If there is a Loss: Take lesser of Basis and FMV at Conversion, then deduct depreciation
Inherited Property: LT or ST - ANSAlways LT. No matter what
Nonresidential Property - ANSDepreciated over 39 years, using mid month depreciation
Residential Property - ANSDepreciated over 27.5 Years, using mid month convention
Mid Month Convention MACRS - ANSStraight-line, Half the month of sale and purchase
MACRS 5 year property includes - ANSAutomobiles, light trucks, computers, and copiers
MACRS 7 year property includes - ANSFurniture and fixtures, machinery, and equipment
Midquarter convention is used when - ANSMore than 40% of assets are placed into service
in Q4
Intangible assets are amortized over - ANS15 years (180 Months)
Bonus Depreciation Limitation - ANSAssets converted from personal - business cannot use
bonus depreciation
Assets received as gift are also not eligible
Inherited Property also not eligible
Casualty Loss for C Corps - ANSPartially Destroyed: lesser of:
- NBV of property before loss
- Decline in value after loss
Fully Destroyed:
- NBV of property before loss
Deduct Insurance reimbursement for each
Organizational and Start-Up Costs - ANSDeduct up to 5k of each
If expenses are over 50k (e.g. 51k) minimize deduction $ for $ (e.g. 4)
Excess costs can be amortized over 15 years
Capital Loss Deduction for Corporations - ANS3k for individuals is not allowed
- losses can be used to offset gains
- excess can be carried back 3 years
- and forward 5 years
