Tax compliance and planning concepts tested on the CPA TCP discipline section.
40 cards · basic cards · AI-written, checked twice. Edit anything.
- What is Adjusted Gross Income (AGI)?
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Gross income minus above-the-line deductions- What does the standard deduction do?
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Reduces taxable income by a flat amount without needing to itemize- How long must a capital asset be held to qualify for long-term capital gain treatment?
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More than one year- What is Section 1231 property?
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Depreciable business property and real property used in a trade or business, held more than one year- What does Section 1245 depreciation recapture convert to ordinary income?
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Gain on disposal of personal property up to the amount of depreciation previously claimed- What does Section 1250 depreciation recapture apply to?
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Excess depreciation on real property, recaptured as ordinary income- What type of property currently qualifies for a Section 1031 like-kind exchange?
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Real property held for business or investment use- What is 'boot' in a like-kind exchange?
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Non-like-kind property or cash received that triggers recognized gain- Under the installment sale method, when is gain recognized?
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As payments are received over time, rather than all at the time of sale- The wash sale rule disallows a loss deduction if a substantially identical security is repurchased within ____ days before or after the sale.
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30- What is the general rule for deducting passive activity losses?
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They can only offset passive income, not active or portfolio income- What is the special allowance amount for active participation rental real estate losses against nonpassive income?
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Up to $25,000, phased out at higher income levels- What do the at-risk rules limit?
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A taxpayer's deductible loss to the amount they have economically at risk in an activity- How is an individual net operating loss generally treated after the Tax Cuts and Jobs Act?
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Carried forward indefinitely, limited to 80% of taxable income, generally no carryback- What is the maximum number of shareholders an S corporation may have?
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100 shareholders
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