1 REG Surgent Flashcards
Max. deductible gift am’t of a corp?
$25 per individual
Committees involved in writing tax law:
- House Ways & Means Committee Report
- Senate Finance Committee Report
- Joint Conference Committee Report
Contract elements:
- Agreement
- Consideration
- Legal purpose
- Competent parties
Start up cost amortization:
1st yr up to $5000 - org. expenditures > $50k
+ Amortized am’t from 1st month of business
over 15 years
AMT
state tax refund - exclusion item
Costs capitalized to inventory:
- DM
- DL - payroll
- Direct production
- Indirect production
- Service costs - recruiting & securities services
NOT MARKETING
Business Judgment Rule
Protect directors from s/h's lawsuits Applies when: 1. the board makes an informed decision 2. there is no conflict of interest 3. there is a rational basis for the board's decision
S-Corp basis
- can never be
Workers’ Comp Statute covers:
- occupational disease
2. employment - aggravated preexisting disease
Tax Estimates:
Income of $150k or less: - 90% CY tax liab., timely pmts. - 100% PY tax liab. Income >$150k - 90% CY tax liab., timely pmts. - 110% PY tax liab.
SM, LLC
disregarded as separate from owner; therefore, can file as a corp. or a disregarded entity
When a secured creditor repossesses & sells collateral, the first obligations to be paid are:
the expenses of the sale
Draft
a 3 party instrument in which one person (the “drawer”) orders a second person (the “drawee”) to pay a sum certain of money to a third person (the “payee”)
Post-dated check
bears only one date
Trade acceptance
similar to draft, except “drawer” is also “payee”
Promissory note
two-party instrument & involves a promise (rather than an order) to pay
Federal Fair Labor Standards Act regulates:
- minimum wage
- overtime
- # of hrs in the workweek (through the overtime requirement)
Control groups of a corp
To be a member of an affiliated group:
- must hold at least 80% of corp stock
Taxable interest income:
all interest rec’d is taxable unless exempt by law.
Exempt:
- interest on all state & local bonds (“municipal bond interest”)
Trust accounting income
Amount an income beneficiary is entitled to receive from the trust; includes both taxable & nontaxable items of income
