Series65 MOD 19 Taxation

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Series65 MOD 19 Taxation
2015-01-25 20:00:04

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  1. In reference to Taxation, name 3 types of Income/Losses:
    • Active
    • Passive
    • Portfolio
  2. What are the 4 types of incomes:
    • a. Salary/Wages
    • b.Consulting or side jobs
    • c. interest of bank accts or rental income from properties
    • d. Losses on properties owned/managed by taxpayer
  3. Describe Passive Income
    • Property income/losses from depreciation and depletion and capital gains/losses upon sale.
    • Passive Income (usually from Limited Partnerships) must claim all passive income in the year it is credited to the taxpayer. After calculating, NET passive gains/losses are added as income to investor at their tax bracket.
  4. PASSIVE losses ________ be taken against ordinary income
  5. Portfolio Income is considered:
    Interest, capital gains/losses on sales, dividends
  6. Passive income must be claimed:
    the same tax year it is credited
  7. Regressive tax taxes all the people:
    regardless of income
  8. Sales tax and Excise tax are considered:
    Regressive Tax
  9. Sales tax is levied on specific products and services by
    state and local gvmnts
  10. Excise tax is levied by the state for:
    manufacture, sale or consumption of non-essential items such as liquor, tobacco and gasoline
  11. What are the 2 types of Property taxes:
    Real Estate taxes and Personal Property taxes
  12. If the AMT (Alternative Minimum Tax) is greater than the regular tax, they must pay:
    AMT (tax Preference Items are deductions typically triggering the AMT)
  13. Real estate taxes support cities, school districts and other agencies by collecting:
    AD VALORUM taxes
  14. Personal Property taxes include taxation on individual and business property such as:
    RVs, Boats, business machines and furntiture
  15. Estate taxes are levied by:
    Federal and some State gvmnts
  16. Estate taxes and income taxes are considered:
    PROGRESSIVE taxes because the higher the value, the more taxes are paid by taxpayer
  17. The max that can be deducted from income via capital losses is:
    • $3,000/ yr.
    • Additional losses can be subtracted in consequent yrs.
  18. When taxpayers have more than one gain or loss they must follow a process for:
    Netting capital gains and losses
  19. Amortization is Tax deductible when:
    an asseet is depreciated
  20. Amortization is not deductible when asset is a:
  21. Dividends from Domestic stocks are taxed at:
    max 15%
  22. All US Gov bonds are exempt from:
    state and local taxes
  23. To Compare yields of Corporate Bonds to MUNI bonds use this equation:
    • Corporate bond yield = MUNI bond Yield
    •                               [100%-Tax Bracket]
  24. Puerto Rico Bonds, GUAM Bonds are considered
    triple exempt bonds
  25. ANY bond purchased at a premium and held to maturity:
    WILL NOT have a capital loss
  26. For A ZERO-Coupon bond, the ____________is the is the interest.
    • If sold prior to maturity there could be a gain or loss with the interest
  27. WASH SALE is when:
    an investor sells a security at a loss and then repurchases the same stock less than 30 dAYs before or 30 days after the sale of the stock
  28. IRS does not allow investors to recognize a loss when they execute a: