ENROLLED AGENT PART 2 STUDY EXAMS GUIDED
ALL QUESTIONS AND ANSWERS SURE A+
✔✔Household Employment Tax - ✔✔1. SS and Medicare taxes for someone caring for
your dependent or spouse
2. Exempt individuals: spouse, parents, child under 21, employees under 18.
✔✔Form 8582 - ✔✔Passive Activity Loss Limitations (PAL)
for any passive activity loss for current tax year and unallowed for prior year.
Exceptions (use Schedule E):
-actively participated
-rental loss <$25,000 / $12,500 MFS
-MAGI was not more than $100,000 / $50,000 MFS
✔✔Rental Loss limitations: - ✔✔1. Must actively participate
2. Up to $25,000 (excess carried forward indefinitely or until sold)
3. Prorated if personal use > 14 days or 10% of days rented
4. Reduced for MAGI, w/o SS, $100,000 - $150,000 (unless a real estate professional)
✔✔Charity Contributions - ✔✔1. FMV of gift
2. Deduction limit of 50% of AGI
3. Deduction limit of 30% for appreciated property
4. Deduction limit of 20% to private foundations
, 5. Excess may be carried forward 5 years
✔✔Charity Contributions Documentation - ✔✔1. Receipts for $75 or more if for goods or
services Contemporaneous receipts for $250 or more
✔✔Charitable Contributions of Cars, Boats and Planes - ✔✔If more than $500, can only
deduct after sale by donee of the lesser of FMV or gross sale proceeds reported by
donee.
✔✔Casualty Loss - ✔✔1. Limited to lesser of FMV or cost basis
2. Less reimbursements
3. $100 deducted for each individual casualty loss
4. Meet 10% of AGI threshold (all of the casualty losses combined)
✔✔Federal Disaster Area - ✔✔Loss may be deducted in current or prior year.
✔✔Miscellaneous Deductions - ✔✔Subject to 2% AGI threshold
✔✔Itemized Deduction Limitation - ✔✔High Income earners $309,900 / $258,250
(2015)
Excess reduced by 3% (up to maximum overall reduction of 80%)
✔✔Related Parties Include: - ✔✔1. Spouse
2. Parents, Grandparents, etc.
3. Children
4. Brothers/Sisters
5. Trusts/Beneficiaries
6. >50% corporation or partnerships
7. Constructive ownership
✔✔Like-Kind / 1031 Exchanges - ✔✔Must be received within 45 days
Must be a written document
Must be Business or Investment Property/Equipment
Must be like-kind or like-class
Not inventory or receivables or goodwill
Your Basis remains the same (switches to your new property) so no gain Recognized.
Boot = cash, other property in addition to exchanged property and/or release from debt.
Boot you receive = Gain Realized & Recognized by you
Boot you pay = Increases your Basis
✔✔Computation of Basis - ✔✔Basis = Original Basis
Plus Gain Recognized
Plus Boot Paid
ALL QUESTIONS AND ANSWERS SURE A+
✔✔Household Employment Tax - ✔✔1. SS and Medicare taxes for someone caring for
your dependent or spouse
2. Exempt individuals: spouse, parents, child under 21, employees under 18.
✔✔Form 8582 - ✔✔Passive Activity Loss Limitations (PAL)
for any passive activity loss for current tax year and unallowed for prior year.
Exceptions (use Schedule E):
-actively participated
-rental loss <$25,000 / $12,500 MFS
-MAGI was not more than $100,000 / $50,000 MFS
✔✔Rental Loss limitations: - ✔✔1. Must actively participate
2. Up to $25,000 (excess carried forward indefinitely or until sold)
3. Prorated if personal use > 14 days or 10% of days rented
4. Reduced for MAGI, w/o SS, $100,000 - $150,000 (unless a real estate professional)
✔✔Charity Contributions - ✔✔1. FMV of gift
2. Deduction limit of 50% of AGI
3. Deduction limit of 30% for appreciated property
4. Deduction limit of 20% to private foundations
, 5. Excess may be carried forward 5 years
✔✔Charity Contributions Documentation - ✔✔1. Receipts for $75 or more if for goods or
services Contemporaneous receipts for $250 or more
✔✔Charitable Contributions of Cars, Boats and Planes - ✔✔If more than $500, can only
deduct after sale by donee of the lesser of FMV or gross sale proceeds reported by
donee.
✔✔Casualty Loss - ✔✔1. Limited to lesser of FMV or cost basis
2. Less reimbursements
3. $100 deducted for each individual casualty loss
4. Meet 10% of AGI threshold (all of the casualty losses combined)
✔✔Federal Disaster Area - ✔✔Loss may be deducted in current or prior year.
✔✔Miscellaneous Deductions - ✔✔Subject to 2% AGI threshold
✔✔Itemized Deduction Limitation - ✔✔High Income earners $309,900 / $258,250
(2015)
Excess reduced by 3% (up to maximum overall reduction of 80%)
✔✔Related Parties Include: - ✔✔1. Spouse
2. Parents, Grandparents, etc.
3. Children
4. Brothers/Sisters
5. Trusts/Beneficiaries
6. >50% corporation or partnerships
7. Constructive ownership
✔✔Like-Kind / 1031 Exchanges - ✔✔Must be received within 45 days
Must be a written document
Must be Business or Investment Property/Equipment
Must be like-kind or like-class
Not inventory or receivables or goodwill
Your Basis remains the same (switches to your new property) so no gain Recognized.
Boot = cash, other property in addition to exchanged property and/or release from debt.
Boot you receive = Gain Realized & Recognized by you
Boot you pay = Increases your Basis
✔✔Computation of Basis - ✔✔Basis = Original Basis
Plus Gain Recognized
Plus Boot Paid
