ITX - 40 Flashcards
(40.4) ISOs ___ income, as well as reduces taxes to ___ rates.
- defer
- capital gain rates
(40.4) ISOs are not ordinary income to the employee when they are ___.
granted or exercised
(40.4) ISOs can only be owned by shareholders with less than ___% stock ownership
10%
(40.4) ISOs: The owner of the options must be employed by the grantor corporation until at least __ months before the option is exercised.
3
(40.4) ISOs: Once the shares have been purchased with the options, or the options have been exercised, they must be held for more than __ year from the date of exercise and at least __ years from the date the options were granted, before being sold, in order to be taxed entirely as long-term capital.
- 1 year (one year plus one day)
- 2 years
(40.4) ISOs: Once the shares have been purchased with the options, or the options have been exercised, they must be held for more than 1 year (one year plus one day) from the ___ and at least 2 years from the date the ___, before being sold, in order to be taxed entirely as long-term capital.
- date of exercise
- options were granted
(40.6) The maximum amount of Section 179 depreciation is $___; it is reduced by the amount of assets purchased above $___.
- $25,000
- $200,000
(40.6) Large acquisitions that are not structural components of the building can be depreciated over __ years using accelerated-recovery methods, rather than __ years using straight-line depreciation for residential or commercial buildings.
- 15 & 7
- 27.5 & 39
(40.6) For most tangible personal property, a __-year of depreciation is allowed in the year of acquisition, even if it is purchased in the last month of the tax year.
half
(40.6) If more than 40% of the total tangible personal property is placed in service for the tax year is placed in service in the last __ months of the year, then all acquisitions are depreciated from the __ in which they were acquired.
- 3
- middle of the quarter
(40.9) A __ is a bond swap strategy.
tax swap
(40.10) Owners of worthless securities (except partnerships) have __ years to file retrospective claims for tax refunds. Returns can be amended for up to __ years.
7
7
