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?
Show answer
Adjusted gross income.- Gross income for federal tax purposes includes income from what sources?
Show answer
All sources, unless specifically excluded by law.- What is the holding period required for a capital gain to be long-term?
Show answer
More than one year.- How much net capital loss can an individual deduct against ordinary income per year?
Show answer
$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?
Show answer
Ordinary income.- Under Section 1250, depreciation recapture applies to what type of property?
Show answer
Depreciable real property.- Since 2018, Section 1031 like-kind exchange deferral applies only to what type of property?
Show answer
Real property held for business or investment use.- What does the wash sale rule disallow?
Show answer
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?
Show answer
Passive activity income only, not ordinary income.- What do at-risk rules limit for a taxpayer?
Show answer
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)?
Show answer
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?
Show answer
20 percent.- What is the kiddie tax?
Show answer
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?
Show answer
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?
Show answer
7.5 percent of AGI.
FlashKeepers