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Becker REG Memory Mnemonics Test 2023
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Becker REG Memory Mnemonics Test 2023 CPA Exam - REG - Becker Review - ANSWER R1 - Individual Tax: Income R2 - Individual Tax: Adjustments, Deductions, Credits R3 - C Corps., S Corps., Exempt Orgs., Other R4 - Property, Partnership, Estate & Gift Tax R5 - Professional Responsibilites and Securities Regulation R6 - Contracts, Sales, Copyrights/Patents R7 - Commercial Paper, Secured Transactions (Debtor-Creditor), Bankruptcy R8 - Surety, Agency, Business Structures, Employer-Employee, Money Laundering, Antitrust, Docs. of Title, Dodd-Frank Act R1 - Dependency Exemptions - Qualifying Child or Qualifying Relative. See page R1-11. - ANSWER Qualifying Child: CARES C - Close A - Age R - Residency E - Eliminate (gross income) S - Support Qualifying Relative: SUPORT S - Support U - Under (gross income) P - Precludes (joint) O - Only (citizens) R - Relative, or T - Taxpayer lives with for whole year. Qualifying child has residency requirement (more than half). Close Relative includes: child, stepchild, sibling, stepsibling, or nieces/nephews. Age Test: UNDER 19 or under 24 if full-time (5 mo.) student, unless totally/permanently disabled. Gross income test does not include: 1. Social Security 2. Tax-exempt interest 3. Tax-exempt scholarships R1 - Qualifying Widower (aka Surviving Spouse) and Head of Household - ANSWER Qualifying Widower (aka Surviving Spouse) 1. Two years after year spouse died, did not remarry 2. Dependent entitled to exemption 3. Dependent lived there for ENTIRE year Head of Household 1. Not married, but maintains household (over half support), where Dependent lives for more than HALF the tax year. 2. Exception: Dependent parent does not have to live there, as long as household maintained. R1 - Married Filing Separately - ANSWER You may only claim an exemption for spouse if: 1. Spouse has no gross income 2. Was not claimed as dependent by anyone else R1 - Nontaxable Fringe Benefits - ANSWER Tax-Free Fringe Benefits, not included on 1040: 1. Life Insurance Proceeds 2. Health Insurance Premiums 3. De Minimus 4. Meals and Lodging 5. Employer payment of Educational Expenses 6. Qualified Tuition Reductions 7. Qualified Employee Discounts 8. Contributions to Benefit/Retirement Plans (taxed when benefit received) 9. FSA's R1 - Kiddie Tax on unearned interest income - ANSWER $0 - Standard Deduction amt. - 0% tax rate Next $1,050 - Taxed at lower child's rate Amount above is taxed at Parent's higher tax rate R1 - Social Security INCLUDED - ANSWER Lesser of 50% or 85% of Social Security OR provisional income amount above threshold (% and threshold levels vary with provisional income); Where MAGI = AGI + Tax-Exempt Interest + Social Security So basically 50% or 85% of it is included, or it could be less, based on provisional income and threshold. R1 - Series EE Bonds - ANSWER Tax-Exempt Interest when: 1. Used to pay for higher education 2. Sole or joint (spouse) owner 3. Over age 24 4. After 1989 R1 - Unemployment Compensation - ANSWER INCLUDED "comes from the government - include" Note: Worker's Comp. is EXCLUDED "comes from the employer - exclude" R1 - Traditional IRA Distributions are included - ANSWER 59 1/2 70 1/2 10% Penalty Tax Exceptions: HIM DEAD H - Home ($10,000) I - Insurance M - Medical D - Disability E - Education And D - Death R1 - Business Income on Schedule C - ANSWER Nondeductible Expenses: 1. Salaries paid to sole proprietor - Considered a draw. 2. State and local tax expense 3. Health Insurance of sole proprietor 4. Charitable contributions of sole proprietorship 5. Personal interest expense of sole proprietorship 6. Self-Employment Payroll Taxes (can deduct half on 1040) R1 - Rental Income goes on Schedule E (Passive Activity) - ANSWER Vacation/Rental Homes 15 Day Threshold R1 - Passive Losses Exceptions - Rental Activities - ANSWER Deduct losses from certain rental activities:The benefits of buying summaries with Stuvia:
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