Accounting Final pt 1

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ndumas2
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84798
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Accounting Final pt 1
Updated:
2011-05-09 15:39:00
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Survey Accounting LSU Anderson
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first part of Accounting Flash Cards
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  1. about Income Tax...
    also called "Head Tax" during the wars; Form Examples are 1040, 1040A, 1040EZ; Coporate Income Tax, Partnerships Income Tax, Individual Income Tax
  2. Sales Tax and Usees
    buying goods outside of state, you have to pay a use tax
  3. Property Tax
    real estate (realty), based on teh value of the property, also known as "Ad Valorem" Latin for based on value; is also called personal property tax in some states (personalty)
  4. Payroll tax
    also known as employment taxes
  5. Estate Tax
    • A tax on the value of the estate left behind upon your death; federal tax; employer costs-
    • examples are
    • 1 social security (6.2% of gross pay) and 2 Medicare (1.45% of gross pay) which equals 7.65% taxes outo f yoru pocket; 3 state unemployment (.25% to 5.4%) and 4 federal unemployment (8% of 1st 7,000)
  6. Inheritance tax
    imposed by the state
  7. Excise Tax
    federal + state; imposed on gas, alcohol, tobacco
  8. Why do we have an incme tax (objectives of the federal income tax)
    • 1. Primary: to raise revenue for the government
    • 2. Secondary:
    • a. Social:
    • Example: donations to church
    • $10,000
    • x 25% tax rate
    • $2,500 tax savings
    • $7,500 after-tax
    • b. Economic: changes in taxes laws to effect oil and gas industries
  9. Duplicate the on paper the Income Tax Model
    • Gross Income: tangible items (those things that are taxable)
    • Taxable NotTaxable
    • Salaries Gifts
    • Rewards Inheritance
  10. Talk about Form 1040; 1040EZ; 1040A
    • - Form 1040 – what we use now, called the “Long Form” the summary form
    • Form 1040EZ and 1040A – shorter versions
    • the schedules provide the details for the 1040 and the other forms provide the details of the schedules
  11. Schedule A -
    • attached to return if have itemized deductions instead of scheduler deductions
    • use standardized deductions when is more than $5,000 if single and $10,000 if married
  12. Schedule B -
    • if interest and/or dividends are greater than $1,000 must attach -
    • Merrill Lynch: 1099-Int
  13. Schedule C
    • - is used by those who are self-employed
    • is like income statement “self-propriorship”
  14. Schedule D
    • is for capital gains and capital losses
    • - sale of capital assets (stocks, bonds, land , other properties)
    • - selling price – tax basis = if pos. is a gain and if neg. is a loss
    • - 1099-B tells how much sold it for, must keep records for what paid
  15. Schedule E
    • - miscellaneous income from – used to report other misc.
    • - ex. Partnership Income (K-1) – the partners pay the
    • income on the partnership income ex. Royalties, Rental Income, Trust Fund, Estate
  16. Schedule H
    • - household employment taxes
    • - if have maid, sitter, gardeners, etc must pay employment taxes on them (report wages pay them and taxes withheld)
  17. Form 2106
    • - supports Schedule A
    • - “Employee Business Expenses” – incur expenses that your business does not reimburse you for are allowed to deduct 45 cents per business mile
  18. Form 2441
    • - child and dependent care credit
    • - ex. daycare – are allowed to claim $3,000 for one child and $6,000 for two or more children – claim a tax credit or tax savings
    • - ex. summer camps
    • - eligible only if both parents are working
  19. Form 2688
    • - gives you extension to file taxes in Oct. 15 instead of Aug 15
    • - must give explanation of why
  20. Form 4562
    for those who are deducting depreciation
  21. Form 4868
    • gives you extension to file taxes in August 15 instead of April 15
    • - don’t have to give an explanation “automatic”
  22. Taxpayer has $40,000 of wages, $1,200 of Interest Income, and $15,000 of itemized. Which forms must taxpayer have to attach?
    1040 and Schedule A and B
  23. T/F: The childcare credit is reported on Form 2106.
    - False – Form 2441

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