Day 21 Flashcards
A taxpayer donates 4 tickets that cost $160, similar tickets have a FMV of $100. How much can the taxpayer deduct?
$60 - the taxpayer can only deduct the excess contribution over the consideration
MCQ-02132
What increases the Accumulated Adjustment Account (AAA) of an S Corp?
It is increased by separately stated and non-separately stated income and gains
- Tax Exempt income
- Certain life insurance proceeds
MCQ-08466
AAA of an S Corp is increased by what?
- Ordinary business income
- Separately stated income and gains
MCQ-15370
An S Corp issued two series of the same class of stock with identical liquidating and distribution rights but different voting rights. Would this disqualify the S election?
No an S Corp can have no more than one CLASS of stock but can have differences in common stock voting rights
MCQ-14935
When can an S Corp status be revoked by it’s shareholders?
When 50% or more of the shareholders vote to revoke it,
NOTE: voting and non-voting shares are not considered. Just needs to be 50% of total outstanding shares
MCQ-01976
An S Corp acquired 100% of a C Corps stock. When will the S election be terminated?
It won’t be terminated. An S Corp cannot have a C Corp as a shareholder
MCQ-08981
Is a Gain recognized when a partner transfers stock of a Corp in exchange for 25% interest in another partnership?
No
MCQ-01924
If land has a mortgage attached to it and an individual transfers it in exchange for interest in a partnership. When will the individual recognize a Gain on the exchange?
When the mortgage exceeds the basis of the land
MCQ-01715
When property subject to a liability is contributed to a partnership, what is the partners basis in the partnership?
Is it reduced by the amount of the liability assumed by the other partners as long as the liability assumed does not exceed the basis of the property contributed
MCQ-11785
Contributing partners basis in the partnership =???
Adjusted basis of contributed property, plus any gain recognized, less debt relief
MCQ-01757
