Category

Taxable Income

Exclusion

Deferred

For AGI

From AGI

Business Income/Expenses Salary received Earned Income Salary paid Employee Business Expenses Reimbursed of Employee Expenses Employee 1)Accountable--no Meals & Enter. income Expenses 2)NonAccountable-Reimbursement as Income Reimbursed Meals and Entertainment Expense Employee Moving Expense

Business Expense Unreimbursed Business Expense Business Expense

1)50% of unreimbursed 2)50% of actual expense

1)50% deductable 2)100% deductible

Reimbursed Employee Moving Expenses

Employee Fringe Benefits

1)Full reimbursement no income 2)Flat reimbursement income if over moving expense Mostly taxable

Moving Expense Business and Distance test (no meals or house hunting costs) 1)No deduction 2)Deduction if more expensed than reimbursement

Dental/Medical health insurance premiums; Group term life insurance; de minims expenses Deduct health insurance premiums 1)deduct of self employment tax they pay

Self Employed Health Insurance Self Employment tax Income from Flow through Entities Losses from Flow Through Entities Foreign Earned Income [ c) tax credit option] Domestic Manufacturing Losses from disposition of Business assets

Unearned Income

Business Expense

a)$91,500 if resident or 330 days (pro rata)

b)deduct foreign income taxes

Business Expense 1)Ordinary assets-ordinary loss offsets ordinary

Category

Taxable Income

Exclusion

Deferred

For AGI income 2)Capital asset losses for individual uses loss to offset capital gains and $3,000 of ordinary income (excess is carried forward)

From AGI

Like-Kind exchanges

Taxed when party received the wherewithal do pay taxes on any gains

Investment Income/Expenses Rent received Earned Income Rent Paid Investment Unearned Income Interest Income Investment Interest expense

Rent Expense Muni bond interest

Investment expense Annuities Installment Sales Dividends received Unearned Income (15% of qualified dividends for 2010)

1)deduction for mortgage loans 2)deduction for investment assets (stock, land, etc.) Deductable to extent of interest income with carry over Subject to 2% floor Annuity exclusion ratio=investment/#payments Only pro-rata amount is taxed

Dividends paid Forming Entities

Qualified Retirement account Non-qualified deferred compensation Personal Activities Casualty Loss

Defer gain/loss when contribute property to forming entities No taxes until withdrawals Taxable when restrictions are removed Lesser of value or

Category of Theft

Taxable Income

Exclusion

Deferred

For AGI

From AGI basis or amount of unrepeatable damage; Subject to $100 + 10% floor on AGI

Qualified Education Loans

Qualified Education Expenses

1)Mod. AGI<$60,000 Deduct $2,500 2)$60,000<Mod. AGI<$75,000 Deduct 2500(2500*(mod AGI60,000)/15,000) or amount paid 1)Mod AGI<$65,000 Deduct 4,000 2)65,000<mod AGI<80,000 Deduct lesser of amt paid or 2,000 Excluded if payment for tuition and fees (not meals and board) and there are not requirements to do something Limited to 7.5% floor Prescriptions, medical aids, transportation, hospital stays/meals Deduct cost to prepare taxes; appraisals 1)public/private operating: 50% ceiling on AGI for cash and property donations;30% AGI for Capital gain property donations 2)Private nonoperating: 30% ceiling on AGI for cash and property; 20% for capital gain property donations 1)expenses otherwise deductable 2)deductable if it were trade/bus. 3)depreciation on assets used

Scholarships

Medical Expenses

Tax Preparation Charitable Contributions

Hobby

Income

1)expenses otherwise deductable

Category

Taxable Income

Exclusion

Deferred

For AGI

From AGI