Deck 24

Question 1

Charitable contributions can be carried forward:

Answer 1

5 years

Question 2

Deductions to arrive at net self employment income include:

Answer 2

All necessary and ordinary expenses connected with the business (does not include charitable contributions or federal income tax payments)

Question 3

Deduction for casualty loss =

Answer 3

Lessor of adjusted basis or change in FMV - 10% of AGI - $100

Question 4

Medical expense limitation:

Answer 4

Amount that exceeds 10% of AGI

Question 5

Ordinary loss is limited to what:

Answer 5

The basis

Question 6

What do guaranteed payments increase for the partner (tax basis or ordinary income)?

Answer 6

Ordinary income (deduction for the partnership)

Question 7

What kind of property is subject to the half year and mid quarter conventions?

Answer 7

Personal property (machinery and equipment)

Question 8

Partnership basis formula =

Answer 8

Capital account + partners share of liabilities

Question 9

In a complete liquidation, what must happen to the partnership’s basis?

Answer 9

Partnership basis must be reduced to zero

Question 10

Losses between a controlling partner and his controlled partnership from the sale or exchange of property are allowed or not allowed?

Answer 10

Not allowed

Question 11

General rules for non liquidating distributions:

Answer 11

Distribution is nontaxable, basis of property received will be the same as the basis in the hands of the partnership immediately prior, Distributions to a partnership reduce the partner’s basis

Question 12

Reporting requirements of the 1934 act apply to any company:

Answer 12

1) whose shares are traded on a national exchange, or 2) which has at least 500 shareholders

Question 13

When must a company register under the 1934 act?

Answer 13

If the company is registered on a national exchange

Question 14

What must occur for an offering of securities to be exempt from registration under the 1933 act?

Answer 14

The sale or offer to sell the securities is made by a person other than an issuer, underwriter, or dealer

Question 15

Two parts of the registration statement include:

Answer 15

Prospectus and other information about the securities being issued

Question 16

Requirements for a corporation to register under the 1934 act:

Answer 16

1) securities are traded on a national exchange, 2) more than 2000 shareholders, and 3) more than $10 million assets

Question 17

What must be filed under regulation A?

Answer 17

Offering circular with the SEC

Question 18

Section 18 of the 1934 Act subjects a defendant to liability for:

Answer 18

False and misleading information in the registration statement or other required reports (10K, 10Q)

Question 19

Securities act of 1933 only applies to:

Answer 19

The original issuance of stock

Question 20

Securities act of 194 regulates:

Answer 20

purchases and sales after initial issuance, reporting provisions, and antifraud provisions