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Management – Tax Principles and Policy


I need help on an exam that is focused on calculating tax liabilities, LTCG rates, tax liabilities/refunds, taxable income. You need to know the basic tax equation, which deductions are “For AGI,” and which deductions are itemized. Phaseouts are also a part of the calculations. Know the Maximum annual contributions allowed for retirement plans (p 80 & 81): Keogh, 401(k), 403(b),Traditional IRA, ROTH IRA, Coverdell. Know the phase out ranges and calculations for a Single taxpayer for Traditional and Roth IRAs for 2020. (You do not need to know phase out range for MFJ of MFS.) Know the retirement planning strategies exactly the way they were presented in the lectures (When to contribute to 401(k), Roth IRA, etc.) Know the maximum student loan interest, education expense, American Opportunity Credit, and Lifetime Learning Credit amounts. You do not need to know the phase-outs for any of these. You do not need to know the cost per mile allowed for transportation for medical or for charity. Make sure you know how to use the tax rate tables. Some students used a flat tax on the midterm, which is incorrect. All taxpayers are taxed at the stair step rates. No one pays a flat 37%. Look at the inside front cover ofthe book and the sample midterm questions I sent before the midterm. Make sure you know how to apply the LTCG rates, and how to calculate tax liability if some income is taxed at LTCG rates. The total of all property tax paid PLUS all state income tax paid is limited to a maximum of $10,000. On the exam, total property tax and state and local tax, then indicate that it is limited to $10,000. The exam is from 11:30am-1:30pm US PST. Here are some sample questions from the first half of the class:

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