Final Tax Review
IRA vs: Roth IRA vs: 401K vs: pension (similarities, differences, limits)
IRA
ROTH IRA
401K
PENSION
DEFINITION
SIMILARITIES
DIFFERENCES
LIMITS
Rollovers (direct vs: distribution)
DIRECT:
DISTRIBUTION:
Minimum Required Distributions (retirement plans)
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How much gain is excluded from income when selling your personal home?
o Single and MFJ
o Also what are the requirements (what if you don’t meet these?)
o S
o MFJ
o 250000
o 500000
o
o
o
Know the difference between a Capital asset and Sect 1231 asset
o How are Gains and Losses taxed for each?
CAPITAL ASSET
SECTION 1231
DEFINITON
GAINS TAXED
LOSSES TAXED
What does Sect 1245 Depreciation recapture mean?
o How is Sect 1250 different?
SECT 1250
DEPRECIATION
RECAPTURE
What’s the difference between a realized gain/loss and a recognized gain/loss
REALIZED:
RECOGNIZED:
Know what casualty gains are and how to avoid them
CASUALTY GAINS
WHAT
ARE
THEY
HOW
TO
AVOID
THEM
Calculate basis in like-kind exchange
o If cash is involved in a like-kind exchange what happens….
EQUATION FOR CALCULATING BASIS
WITH BOOT
WITHOUT BOOT
DETERMINING>>>>>
BASIS
GAIN/LOSS
LATER
GAIN/LOSS
GIFTS
INHERITANCES
HOBBY
TAX
ADVANTAGES:
DISADVANTAGES:
BUSNESS
TAX
ADVANTAGES:
DISADVANTAGES:
Know what MACRS is and list assets that fall into each useful life category
YEARS
%
ASSET
TYPE
5
7
10
15
27.5
39
Mileage
meals
Home office
IRS METHOD
TAX COURT METHOD