MOTHIISSSDEAA Above the line
Moving expenses
One half SE FICA
Tuition fees
HSA’s
IRA contributions
Interest withdrawal penalty
SE retirement
SE health insurance
Student loan interest expense
Domestic production activity deduction
Educator expenses
Alimony paid
Attorney fees
HIDE IT Not taxable:
Homeowner exclusion (500,000 MFJ)
Involuntary exchange (no gain recog)
Divorce property settlement
Exchange of like-kind
Installment sale
Treasury & capital stock
CELL GRAF Nonrefundable Credits:
Child & dependent care credit
Elderly or disabled credit
Lifetime Learning Credit
Long-term unused minimum tax credit
General business credit
Retirement plan contribution credit
Adoption credit
Foreign tax credit
WE ACE Refundable Credits:
Withholding taxes
Earned income credit
American Opportunity Credit
Child tax credit
Excess social security paid
BEBE U BEST Misc – 2%
Business gifts
Educational expenses
Business use of home
Employment agency fees
Uniforms
Business expense – unreimbursed
Expenses of investors
Subscriptions to professional journals
Tax prep fee
LID PPP MOLDD Corp AMT
Adjustments:
Long Term Contracts
Installment Sale Dealer
Depreciation Adjustments
Preferences:
Percentage depletion
Private activity issued post 86’ tax exempt interest income
Pre 87’ ACRES excess depreciation
ACE:
Municipal bond interest income
Organizational expense amort.
Life ins. Proceeds on key employees
Difference between AMT and ACE depreciation
Dividends received deduction (only 70%, under 20% ownership )
NIRD 60% of personal holding corp. income from:
Net rent
Interest that is taxable
Royalties
Dividends
HIMDEaD Exceptions to IRA early withdrawal penalty
Homebuyer (first time)
Insurance
Medical in excess of 10% AGI
Disability (perm. or indefinite, not temp.)
Education
and
Death
COMMIT Itemized deductions
Charity
Other – misc.
Misc. 2%
Medical
Interest & taxes
Theft & casualty
WRaP Non-deductible losses
Wash sale losses
Related party transactions
And
Personal losses
CARES qualifying child rules
Close relative
Age limit (19, 24 if in college)
Residency (more than half the year)
Eliminate gross income (must claim exemption for child)
Support test (child did not contribute more than ½)
SUPORT qualifying relative
Support test (must provide more than ½)
Under exemption (relative’s income must be under $4,000)
Precludes dependent filing joint return
Only citizens of the U.S.
Relative or
Taxpayer lives w/ non-relative for WHOLE year
MAIDS Elements of Fraud
Misrepresentation of material fact
Actual and justifiable reliance by plaintiff
Induce plaintiff’s reliance
Damages
Scienter
MYLEGS Contracts Req. Writing
Marriage – consideration
Year – terms cannot be completed in one year (from contract date)
Land – except leases less than a year
Executors – pay estate debts from personal funds
Goods – $500 or more
Surety – to pay debt of another
SWAP Exception to “G†in MYLEGS
Specially manufactured goods “(custom)
Written confirmation binds the seller, buyer binded if they don’t reject within 10 days
Admitted to court
Performed
FAIDS real defenses HDC is subject to
Fraud in execution
Forgery
Adjudicated insanity – void
Alteration (material)
Infancy (minor)
Illegality – void
Duress – void
Discharged in bankruptcy
Suretyship defenses
Statute of limitations
WAFTED Not discharged under Chapters 7 or 11
Willful or malicious injury
Alimony
Fraud debts incurred
Taxes due within 3 years
Educational loans
Debts undisclosed in the bankruptcy petition
SAGWEGCTI Prioritize debts
Support obligations to family
Admin expenses of bankruptcy proceeding
Gap creditors
Wages up to $12,475
Employee benefit plan contributions
Grain farmers/fisherman’s claim up to $6,150
Consumer deposits – undelivered goods paid for up to $2,775
Taxes
Injury claims involving intoxicated driving
FAR - 75
AUD - 78
BEC - 82
REG - 77
2 Corinthians 5:21
Our value does not come from our skills and abilities, as good as they may be; it does not come from our GPA, our job, a promotion from that job to a better job, our success on the CPA exam, or anything of the like; but our value comes from the fact that we have a Creator who loves us, cares for us, and desires to help us navigate the rough waters of this life in a way that provides security, hope, and true, everlasting joy while we anticipate the life to come, with Him.
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