General Review-1 Flashcards
When is gained realized on a partnership distribution of property?
Only if boot received exceeds partnership basis
What are 2 general tips to increase score on MCQs?
- Read last sentence of MCQ first.
2. Read entire MCQ slowly, repeatedly & thoroughly.
When a corp sells land to a shareholder for less than FMV how is the basis difference handled?
Treated as Taxable constructive dividend to shareholder
In figuring NOL how is it calculated in relarion to prior years?
Can carry back to or carry forward 20 years. Start averaging out prior years to slowly bring g/l up to present year on MCQ.
What is a DRD? Whst %s are involved?
Dividend received deduction, when company owns owns stock of another company and received dividends from them. <20% is 70% reduction, 20-80% is 80% reduction, over 80% total reduction.
When partnership interest is purchased with mortgaged property, how is it calculated?
adjusted basis of property minus mortgage times percentage of partnership purchased.
What is capital loss limit for individual taxpayer?
$3,000 per year, with balance carried forward.
When a sale happens between relatives, no gain is realize; however, what is the rule of thumb for figuring basis to the buyer?
Either the greater of the amount paid by transferee, or basis of property at time of sale.
