enumeration Flashcards
Four Types of Gross Income for Estates and Trusts:
Income accumulated for an unborn beneficiary.
Income currently distributable to beneficiaries.
Income received during administration of an estate.
Income either distributed to beneficiaries or retained by the fiduciary.
Four Participants in a Trust:
Trustor (Grantor)
Trustee
Beneficiary
Fiduciary
Three Allowable Deductions for Estates and Trusts:
Income distributable to beneficiaries
Income collected by a guardian
Income during administration retained by fiduciary
Three Conditions for Taxable Estates:
Estate under judicial settlement
Income received post-death included in estate income
Taxation from the date of death
Three Differences Between Taxpayer and Conduit Entities:
Taxpayers are taxed on all income earned.
Conduits pass income to owners for tax purposes.
Trusts blend elements of both taxpayers and conduits.
List the two main types of general partnerships in tax classification.
General Professional Partnership (GPP) and
General Co-Partnership (Compania Colectiva)
Enumerate two key responsibilities of GPPs in tax reporting.
File an annual income tax return,
disclose partners’ names and shares
Name two deductions that GPPs or partners can claim.
Itemized Deductions,
Optional Standard Deduction (OSD)
List two main tax statuses a co-ownership might have depending on its activities.
Non-taxable (if limited to preservation),
Taxable (if profit-generating)
Identify two situations where GPP partners pay income tax individually
On distributive share in GPP income,
on other personal income
List two situations when a GPP’s OSD may not be claimed by partners
If GPP claims OSD, partners cannot claim it;
partners’ distributive share is net
Enumerate two types of partnership losses.
Net Operating Loss,
Division of Losses per Profit Sharing Ratio
State two characteristics that distinguish GPP from other partnerships in taxation.
GPP not taxed as corporation,
income taxed at partner level
Identify two general co-partnership tax implications for partners.
Considered stockholders,
profits treated as dividends
List two instances where partners cannot claim further deductions on GPP income.
When distributive share is net income,
if OSD is applied at the GPP level
