Taxation and business law concepts tested on the CPA REG exam section.
45 cards · basic cards · AI-written, checked twice. Edit anything.
- What does AGI stand for in individual taxation?
- Adjusted gross income.
- Gross income for federal tax purposes includes income from what sources?
- All sources, unless specifically excluded by law.
- What is the holding period required for a capital gain to be long-term?
- More than one year.
- How much net capital loss can an individual deduct against ordinary income per year?
- $3,000 ($1,500 if married filing separately).
- Under Section 1245, depreciation recapture on the sale of personal property is taxed as what type of income?
- Ordinary income.
- Under Section 1250, depreciation recapture applies to what type of property?
- Depreciable real property.
- Since 2018, Section 1031 like-kind exchange deferral applies only to what type of property?
- Real property held for business or investment use.
- What does the wash sale rule disallow?
- A loss deduction when substantially identical stock is repurchased within 30 days before or after the sale.
- What can a passive activity loss generally be used to offset?
- Passive activity income only, not ordinary income.
- What do at-risk rules limit for a taxpayer?
- The deductible loss to the amount the taxpayer has economically at risk in an activity.
- What is the purpose of the alternative minimum tax (AMT)?
- To ensure taxpayers with certain tax preference items still pay a minimum amount of tax.
- The qualified business income deduction under Section 199A allows eligible taxpayers to deduct up to what percentage of QBI?
- 20 percent.
- What is the kiddie tax?
- A rule taxing a child's unearned income above a threshold at the parent's marginal tax rate.
- What is one requirement to file as head of household?
- Paying more than half the cost of keeping up a home for a qualifying person.
- What is the AGI floor for deducting medical expenses as an itemized deduction?
- 7.5 percent of AGI.