CPA TCP cheat sheet

Standard deduction 2024: $14,600 single, $29,200 MFJ, $21,900 HOH; additional $1,550 (single/HOH) or $1,950 (MFJ) per qualifying 65+/blind condition.

QBI deduction: 20% of qualified business income, limited to 20% of taxable income minus net capital gain; above threshold ($191,950 single / $383,900 MFJ for 2024) the deduction phases out for SSTBs and is capped by W-2 wages/UBIA.

Capital gain brackets 2024: 0% up to $47,025 single / $94,050 MFJ; 15% to $518,900 single / $583,750 MFJ; 20% above; 3.8% NIIT applies over $200,000 single / $250,000 MFJ MAGI.

AMT: exemption $85,700 single / $133,300 MFJ (2024), phaseout at 25% of AMTI above $609,350 single / $1,218,700 MFJ; AMT rate 26% on first $232,600 of AMT base, 28% above.

Above-the-line deductions include HSA contributions, self-employed health insurance, one-half SE tax, self-employed retirement contributions, student loan interest (MAGI phaseout), and IRA contributions within phaseouts.

Kiddie tax: unearned income above $2,600 (2024) of a child under 19 (or under 24 full-time student) taxed at parents' marginal rates; first $1,300 offset by standard deduction, next $1,300 at child's rate.

Additional Medicare tax of 0.9% applies to wages and SE income above $200,000 single / $250,000 MFJ / $125,000 MFS; employer withholding begins at $200,000 regardless of filing status.

Educator deduction up to $300 ($600 MFJ if both are eligible educators); 529 plan distributions for K-12 tuition capped at $10,000 per beneficiary per year federally.

Estimated tax safe harbor: pay 90% of current-year tax or 100% of prior-year tax (110% if prior-year AGI exceeds $150,000, or $75,000 MFS) to avoid underpayment penalties.

S corporation requirements: no more than 100 shareholders, only eligible individuals/estates/trusts, one class of stock, domestic corporation; ineligible corporation election revoked and 5-year waiting period applies.

Reasonable compensation for S corp shareholder-employees must be paid as wages before distributions; distributions reduce stock basis, then create capital gain.

Partnership: distributive share retains character; basis increased by income and contributions, decreased by distributions and losses; losses limited to basis plus at-risk and passive rules.

Built-in gains tax on S corps that converted from C corps: 21% on net recognized built-in gain within 5 years of conversion, limited to net unrealized gain at conversion.

C corp dividends: 20% corporate DRD for less than 20% ownership, 50% for 20-50%, 65% for 50-80% (if not fully taxed), 100% for 80%+ affiliates; dividends-received deduction reduced by taxable income limitation.

Section 179 for 2024: $1,160,000 limit, phased out dollar-for-dollar above $2,890,000 of qualifying property placed in service; cannot create or increase a loss.

Bonus depreciation: 60% for property placed in service in 2024 (40% in 2025, 20% in 2026, 0% after); applies to new and used MACRS property with recovery period of 20 years or less.

Reasonable compensation for C corp shareholder-employees is deductible; excess compensation may be recharacterized as a constructive dividend subject to double taxation.

Form 1120-S and 1065 due March 15 (extendable to September 15); Form 1120 due April 15 (extendable to October 15); S corp election Form 2553 due by March 15 of the effective year.

Section 121 exclusion: $250,000 single / $500,000 MFJ of gain on principal residence if owned and used 2 of last 5 years; partial exclusion for unforeseen circumstances (health, job change, divorce) prorated by qualified use.

Like-kind exchange under Section 1031 applies only to real property held for productive use or investment; boot received is taxable to the extent of realized gain; 45-day identification and 180-day exchange deadlines.

Depreciation recapture: Section 1245 recaptures up to 21% (ordinary) on personal property; Section 1250 recaptures unrecaptured gain at 25% for real property, with remaining gain at capital rates.

Basis of inherited property is stepped up (or down) to fair market value at date of death under Section 1014; community property gets full step-up on both halves.

Installment sale: gain recognized as payments received times gross profit ratio; Section 453A interest charge applies to deferred tax above $5,000,000 on certain sales.

Involuntary conversion: gain deferred if proceeds reinvested in similar property within 2 years (3 years for presidentially declared disasters); basis reduced by deferred gain.

Qualified Opportunity Zone investment: defer gain until 2026 or earlier disposition; basis increases 10% after 5 years (for pre-2022 investments); 10-year holding eliminates gain on appreciation.

Charitable contribution of long-term capital gain property: deduction at FMV limited to 30% of AGI (50% for cash to public charities); excess carries forward 5 years.

Sale of principal residence with nonqualified use (e.g., rental period after 2008) reduces the Section 121 exclusion proportionally.

Gift tax annual exclusion 2024: $18,000 per donee; lifetime exemption $13,610,000; gifts above annual exclusion use Form 709 and reduce lifetime exemption.

Estate tax: 40% top rate on taxable estate above $13,610,000 (2024); portability election on Form 706 transfers deceased spousal unused exclusion (DSUE) to surviving spouse.

Generation-skipping transfer tax: 40% rate, exemption matches estate exemption; applies to direct skips, taxable terminations, and taxable distributions.

Grantor retained annuity trust (GRAT): zeroed-out GRAT minimizes gift tax; remainder passes to beneficiaries free of gift tax if assets outperform the Section 7520 rate.

Section 199A for trusts and estates: QBI deduction flows through on K-1; trusts reach the threshold quickly ($191,950 in 2024), so income may be pushed to beneficiaries.

Charitable remainder trust: income tax deduction for present value of remainder; CRT pays income to donor for life or term of years; remainder to charity; no gain on sale inside trust.

Foreign information reporting: FBAR (FinCEN 114) due April 15 with automatic October extension if aggregate foreign accounts exceed $10,000; Form 8938 threshold $50,000 single / $100,000 MFJ.

Deferred compensation under Section 409A: strict timing rules on elections and distributions; violation triggers immediate income inclusion plus 20% penalty and interest.

Net investment income tax (3.8%) applies to passive income of estates and trusts above $15,200 (2024) of undistributed NII, which favors distributions to beneficiaries.