Module 35 Notes Flashcards

1
Q

What is Schedule B for?

A

Interest and dividend income

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2
Q

What is Schedule C for?

A

Income from sole proprietor

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3
Q

What is Schedule D for?

A

Capital gains and capital losses

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4
Q

What is Schedule E for?

A

Supplemental income

Examples: distributive share of partnership or S corporation income, rents and royalties

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5
Q

What is Schedule F for?

A

Farm income

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6
Q

What is Schedule A for?

A

Itemized Deductions

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7
Q

What form is used to file an individual’s tax extension?

A

Form 4868

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8
Q

Maximum social Security benefits that are taxable is…..

A

85% of what the taxpayer receives

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9
Q

______ stock options are offered to all employees with no discrimination, while ______ stock options are only offered to certain key employees

A

Incentive

nonqualified

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10
Q

Under an incentive stock option when do you pay taxes

A

Only when you sell the stock

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11
Q

Under a nonqualified stock option when do you pay taxes

A

Twice:

1) when you exercise the option and
2) when you sell the stock

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12
Q

Under an incentive stock option when you pay taxes when you sell the stock how is income treated

A

As a long-term capital gain

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13
Q

Under a nonqualified stock option how do you treat income when you exercise the option

A

As ordinary income to the extent that the fair market value exceeds the option price

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14
Q

Under a nonqualified stock option how do you treat income when you sell the stock

A

As a capital gain

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15
Q

T/F

Country nonqualified stock option the option is included in income when received

A

TRUE

The option is included in income when received if it has a determinable FMV

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16
Q

Under an incentive stock option what is the employees basis in the stock

A

The option price at the date the employee exercise the option

17
Q

Under a nonqualified stock option what is the employees basis in the stock

A

The fair market value at the date the employee exercises the option

18
Q

What schedule is self employment tax calculated on?

A

Schedule SE

19
Q

What form should be used to file a refund claim for taxes other than income taxes

A

Form 843

20
Q

What form should be used by a corporation to file for a tentative adjustment or refund of taxes when an over payment of taxes for prior-year results from the carry-back of the current years NOL or net capital loss

A

Form 1139

21
Q

What form should be used by an individual to file for a tentative adjustment or refund of taxes when an over payment of taxes for prior-year results from the carry-back of the current years NOL or net capital loss

A

Form 1045