2 Flashcards
If you get stock as a GIFT, what is your basis?
If the owner’s basis is less than FMV on the date of the gift, then your basis is the same as who gave it to you.
But, if the FMV is less than the owner’s basis at the date of gift, then you have a separate gain basis and a loss basis. Your loss basis is the lower amount, and your gain basis is the higher amount.
What is your basis in INHERITED property?
The FMV of the property at the date used to value the property. *this can be the date of death or the alternate date as chosen by the executor
how is the basis in a jointly-owned property calculated?
The original basis is divided by the two. If you have 350k in basis, each has 175k in basis. At the death of one person, that person’s half is given to the survivor at FMV. So if the FMV of the property was 400k, then the survivor gets basis of 200k plus their original basis of 175k for a total basis of 375k in a property with a fmv of 400k
what does rule 506 D allow?
that the securities are NOT advertised to the public, and that they are not sold to more than 35 non-accredited investors.
There is NO LIMIT on the dollar value of the issue- and they can be either stocks OR debentures
what is the primary thing to win a section 11 claim?
that there was a material misstatement in the registration statement on the effective date, that they can trace their shares to that registration statement, and that they suffered damages
if you give someone a check for 120k and they don’t deposit it within 30 days and then there is a bank failure, you are off the hook for:
the extra 20k. The FDIC will cover 100k.
what right does one cosurety have against another cosurety?
contribution. this means that if one surety pays more than his fair share, he can recover from the other surety
under the UCC, the party to whom a check is present for payment is the:
drawee. this is the bank.
what is one reason for which the corporate veil might be pierced?
if the corp was undercapitalized when it was formed
if you estimated your taxes in 2012 as 5k and then in 2013 you found the exact amount to be 6k, you:
include the remaining 1k in your 2013 tax return
what is the total allowable medical expenses amount?
20k. only medical expenses in excess of 10% of AGI are allowable as a deduction
a merchant’s firm offer has to remain open for:
a reasonable time
what is the only thing that can cause a gain in a partnership distribution?
when cash is distributed that exceeds the partner’s basis
are an insurance company’s securities regulated by the securities act of 1933?
YES
what is the medicare surtax obligation and how is it calculated?
3.8% of the lesser of net investment income or the excess of AGI over the AGI threshold which is total AGI minus 250k
foreign currency exchange gains or losses in the course of normal business are ______
ordinary
for an S corp, what all will increase or decrease a shareholders basis?
everything will affect the shareholders basis- even capital gains and losses
a C corps net capital losses are carried back:
back 3 years and forward 5. Remember that these are capital losses and not NOLs.
NOLs can be carried back 2 years and forward 20
what a bond is amortized for tax purposes, what method is used?
constant yield to maturity method
even if the workload is uneven, if no agreement to the contrary exists, profits in a partnership will be:
divided equally- even if one partner does more work than the other. there needs to be an agreement if profits are different than 50/50
the person who goods must be delivered to under a negotiable bill of lading
the consignee of the bill of lading
if unionized employees go on strike, when must their company hire them back?
after a ‘unfair labor practice’ strike- not if the strike is over wages
which court is not of ‘original jurisdiction’
the united states court of appeals
do proposed regulations have the effect of law?
no
bilateral contract
promise for a promise
unilateral contract
promise in exchange for an act
executory contract
contract not fully performed on both sides
if you file chapter 7, any inheritence you get within how many days of filing will go to your creditors?
within 180 days
what are the reg D offerings?
504- 1 million
505- 5 million
506- private placement, unlimited
the SEC must be notified within 15 days of the first sale
uniform capilization rules amount
gross receipts of 10million or more
