Day 24 Flashcards
On the 1040, if a taxpayer has a K-1 for guaranteed payments for services, does the taxpayer have wages?
NO
TBS-002398
How are General Partner’s gain’s treated from a K-1?
as Ordinary Income
TBS-002398
How are Limited Partner’s gain treated from a K-1?
as Passive Income
TBS-002398
What is the calculation for SE Income Tax?
SE Income x .9235 = SE Taxable Income
SE Taxable Income x .153 (SE Tax rate)
TBS-002398
When do NOT use Half-Year MACRS convention?
When 40% or more of depreciable property is placed into services in the last quarter of the year
TBS-925108
Under MACRS Half-Year convention, how much depreciation is allowed as a deduction in the year of sale?
Only One-Half (50%)
TBS-925108
When do you use Mid-Quarter MACRS?
When 40% or more of property is placed into service in the last Quarter of the year.
TBS-925108
When is Section 179 not allowed?
When the business has a Loss = No Section 179 deduction is allowed
NOTE: Section 179 CANNOT create a loss
TBS-925108
When will a foreign person not meet the substantial presence test?
If they are not present in the US for at least 31 days during the CY and at least 183 days for a three-year period
MCQ-08779
Define Unrelated Business Income (UBI)
UBI of a tax-exempt Organization is income that is:
- Derived from an activity that constitutes trade or business
- Regularly carried on
- Not substantially related to the organization
MCQ-06181
Can money owed as alimony be discharged in bankruptcy?
NO
MCQ-01368
Who does a subagent owe a fiduciary duty to?
To the person with original authority and the Agent appointed
MCQ-01303
What is the annual exclusion for gifts?
$16,000
TBS-002375
