Day 24 Flashcards

1
Q

On the 1040, if a taxpayer has a K-1 for guaranteed payments for services, does the taxpayer have wages?

A

NO

TBS-002398

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2
Q

How are General Partner’s gain’s treated from a K-1?

A

as Ordinary Income

TBS-002398

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3
Q

How are Limited Partner’s gain treated from a K-1?

A

as Passive Income

TBS-002398

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4
Q

What is the calculation for SE Income Tax?

A

SE Income x .9235 = SE Taxable Income

SE Taxable Income x .153 (SE Tax rate)

TBS-002398

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5
Q

When do NOT use Half-Year MACRS convention?

A

When 40% or more of depreciable property is placed into services in the last quarter of the year

TBS-925108

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6
Q

Under MACRS Half-Year convention, how much depreciation is allowed as a deduction in the year of sale?

A

Only One-Half (50%)

TBS-925108

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7
Q

When do you use Mid-Quarter MACRS?

A

When 40% or more of property is placed into service in the last Quarter of the year.

TBS-925108

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8
Q

When is Section 179 not allowed?

A

When the business has a Loss = No Section 179 deduction is allowed

NOTE: Section 179 CANNOT create a loss

TBS-925108

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9
Q

When will a foreign person not meet the substantial presence test?

A

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

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10
Q

Define Unrelated Business Income (UBI)

A

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

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11
Q

Can money owed as alimony be discharged in bankruptcy?

A

NO

MCQ-01368

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12
Q

Who does a subagent owe a fiduciary duty to?

A

To the person with original authority and the Agent appointed

MCQ-01303

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13
Q

What is the annual exclusion for gifts?

A

$16,000

TBS-002375

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