Deck 41 Flashcards
1
Q
Grantor trust:
A
Retain certain powers after transferring property
2
Q
Simple trust:
A
May not distribute principal
3
Q
When you contribute services to the partnership, the partner must include as income:
A
FMV as ordinary income
4
Q
Which fiduciary entity is required to use a calendar year?
A
Trusts; (estates can use any period)
5
Q
A taxpayer’s deduction for investment interest expense is the lesser of:
A
Net investment income or investment interest expense
6
Q
What must be disclosed in a securities registration statement filed under the 1933 act?
A
Principal purposes for which the offering proceeds will be used
7
Q
Distributions that a shareholder or partner receive from either a corporation or partnership only decrease:
A
Their basis (don’t have any affect on taxable income)
