Gross income, deductions, credits, filing status, capital gains and basis.
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- What is the starting point for calculating individual income tax?
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Gross income, which is all income from whatever source derived, except as specifically excluded by tax law.- Are gifts received by an individual includible in gross income?
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No, gifts are excluded from gross income, whether received in cash or property.- What is the tax treatment of life insurance proceeds received upon the insured's death?
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Excluded from gross income, whether received in a lump sum or installments.- Are scholarships and fellowships always excluded from taxable income?
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Only if used for tuition, books, supplies, and equipment; room and board are taxable.- How is income from barter transactions treated for tax purposes?
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Taxable as ordinary income at the fair market value of property or services received.- What is the current tax treatment of alimony payments received?
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Alimony received is excluded from gross income if the divorce or separation agreement was executed after December 31, 2018.- Are unemployment compensation benefits taxable?
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Yes, 100% of unemployment benefits received are included in gross income.- What are the two basic categories of deductions for individual taxpayers?
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Standard deduction and itemized deductions; taxpayers use the greater of the two.- In 2024, what is the standard deduction for a single filer under age 65?
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$14,600- What is the threshold for deducting unreimbursed medical expenses?
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Medical expenses in excess of 7.5% of adjusted gross income are deductible.- What is the deduction limit for charitable contributions by an individual?
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Generally 50% of AGI for cash contributions to public charities; lower limits apply to other donors and assets.- How much mortgage interest can a taxpayer deduct on a personal residence?
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Interest on up to $750,000 of acquisition indebtedness is deductible; $375,000 if married filing separately.- What two tests must be satisfied for an expense to be deductible as a business expense?
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The expense must be ordinary and necessary in carrying on a trade or business.- What is the primary distinction between a capital expenditure and a deductible business expense?
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Capital expenditures create or enhance an asset with useful life beyond the tax year and are depreciated; business expenses are currently deductible.- What is the annual limitation on net capital losses that can offset other income?
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$3,000, with unlimited carryover of excess losses to future tax years.
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