Just All Of Reg Flashcards
Treasury circular 230 is for practicing before the
IRS
Value of fringe benefits for shareholders who holder greater than 2% of the corporations stock must be:
Included as income. (Less than 2% ownership don’t have to report anything)
Surety can be demand for payment
Pretty much damn immediately without asking the debtor, and can go after collateral immediately
Self employed health insurance and 50% tax on self employment are both reported on form
1040
How many judges preside in US district court cases?
1
If a nonliquidating cash distribution reduces a partner’s basis to zero, but he also gets a building, what is the partner’s basis in the building he received?
Zero
Limited partnerships share profit and losses according to
Proportionality of each partner’s contribution to the partnership
Holding period for stocks in a short sale situation
Date of purchase - date of short sale execution
Holding period for short sale
date of purchase to date of short sale execution (as opposed to delivery of the short stocks)
Under statute of frauds, the promise to pay a debt (aka be a surety) must be in what form:
Written
What type of asset is a depreciable asset used in trade or business
Section 1231 asset
Personal property is recaptured (a truck for example) via what recapture rule
1245
Nol’s in 2018, 2019, and 2020 can be carried back x years and forward y years
5 and infinity
Things required under the secured transactions article of the UCC
1) name and mailing address of debtor and secured party
2) indication of the collateral secured by the financing statement
3) description of the collateral
A family farmer can file for debt relief under chapter(s)
7, 11, or 13
Chapter 9 is municipal debt relief and is never covered in reg material
You can just never damn deduct the losses from sales to a related party
There is no back side to this card, stop getting these problems wrong
When a CORPORATION distributes assets to shareholders in a liquidation, gain is recognized as:
FMV of assets minus shareholder’s basis in the corporation
If an itemized deduction is take in a given year, is it includable in taxable income in the following year?
Yes
Appreciated proper deduction percentage (of agi)
30%
If fmv is less than basis at date of gift, recipient’s basis is
Sale price above cost to donor - cost is basis
If between cost and fmv - sale price is basis
If less than fmv- fmv is basis
When a cpa recklessly departs froM the standards of due care, it is
Gross negligence
Dividend’s received deduction is usually (blank), but is limited by (blank)
50% of dividends received
50% of modified taxable income
To increase foreign derived income, sales of property must be
To non u.s persons for use outside of the u.s
For an involuntary petition to succeed, debtors must owe
16750 unsecured, undisputed debt
A corporate is required to use the (direct charge off or reserve method)
Direct charge off
A corporations net capital losses are carried
Back three years and forward 5
Can passive activity from an s Corp be used to offset passive real estate activity?
Yes
Assets held for personal use are
Capital assets
For those accumulated e&p problems:
List steps
Distribute evenly amongst all current year distributions the current year e&p. These are classified as dividends
For accumulated e&p, assign chronologically.
Amount of distribution in excess of stuff mentioned above is nontaxable return of capital.
Any distribution in excess of basis is taxed as capital gain
BEAT applies to corporations with
Annual average gross receipts of 500 million or more for the 3 preceding taxable years
An accountant is liable for negligence only to
Third parties whom the accountant knows or should foresee will be relying on the accountant’s work
Basis for new property in like kind exchange is
Fmv of new property minus deferred gain (gain realized but not recognized yet)
Non separately stated income is calculated by
Adding ‘income after the following deductions’ plus separately stated items (charitable contributions, section 179 deductions etc)
For qbi problems, everything is used to calculate taxable income except for personal itemized deductions if they use the:
Standard deduction. And remember to compare itemized vs standard to see which to take.
If wages are over the threshold in QBI problem, the full limitation amount (greater of 50% w2/25% w2 plus 2.5% property)
Will apply
If the limitation amount for a qbi problem is greater than the tentative qbi deduction, take the
Full tentative amount (20% of qbi)
If NONliquidating distribution, basis in property received is equal to
The partnership’s basis in the land, limited to the partner who received the distribution’s basis
Specific performance is available usually only when
The property is rare or unique
1231 losses are
Ordinary
Characteristics of a type b reorganization
Acquired using stock of company or its parent
Acquiring company must be in control immediately after acquisition
Categories of income for foreign tax credit limitation purposes are
General category income, passive category income, foreign branch income, global intangible low taxed income
Main ways an s Corp is terminated
Have over 100 shareholders
Have a partnership of c Corp as a stockholder
Have a shareholder who isn’t a u.s. citizen
If fewer than x creditors, any one creditor owed 16750 or more may file an involuntary petition to take the debtor through bankruptcy
12
For c Corp nonliquidating distributions the corporation is treated as
Having sold the assets at fmv. Taxed on any gains (fmv - basis)
Losses are NOT deductible though, so if there is a problem asking for gain or loss RECOGNIZED, just look at gains
In a partnership distribution, if a partner has zero basis and receives a building, the partner’s basis in the received building is
Zero
Less than 2% equals
Nothin to recognize for health insurance paid to that employee
Distribution by a c corp does what to a shareholder’s stock
Does not affect it
If a person has basis of 300, and receives a distribution of 270 (doesn’t matter what the c corps basis is for the shareholder’s purposes)
A corp follows same rules for a liquidating distribution
If a partnership basis problem, include debt. Ie, in a liquidating distribution, if total firm debt is 500 and the person owns 10% of the firm, they treat 50k as a gain.
Is this the same for llc’s?
No, not for recourse debt. (And no recourse debt is allocated based on ownership percentage).
Personal service corporations AND personal holding companies must include what percent of dividends received from unrelated taxable domestic corporations in gross income in computing regular taxable i
100%
Psc and phc cruising 100% including
A customer payment for sale of inventory in the us is
Not subject to withholding
A partner’s interest in specific partnership property is
NOT Assignable to the partner’s individual creditors and NOT subject to attachment by the partner’s individual creditors
Asset acquired via gifting’s basis is equal to
The donor’s basis
SUSPENDED PALS ARE CARRIED
FOREVER FORWARD
Real estate taxes, income taxes, personal property taxes are deductible?
Yes, are deductible
Should have know the price was erroneous makes a contract able to be
Rescinded
Tangible personal property
1245 or 1250?
1245
And excess gain over ‘recaptured’ ordinary income is 1231 gain
Does delivery by a common carrier create nexus?
No
Passive activity expenses are only deductible against passive activity
Income. (No portfolio income counted)
If you don’t itemize, you’re still allowed to deduct this much in cash contributions to charity
$300
Qbi is reduced by deduction for self employed health insurance premiums
If total qb income is 75, health insurance premium is 5, then 70 is your 20% amount
For 2018, 2019, and 2020 NOL’s are able to be carried back blank years and forward blank
5 and infinite
NOL’s 5 and infinity
Foreign derived intangible income is NOT a category for
Foreign tax credit limitation purposes
Business rent on self employed income is a
Deductible on schedule c, which is a calculation for agi
Basis of property received by a partner is limited to their
Basis in the partnership.
If 9 k after cash distribution and basis of property distributed to them is 12k, the recipient’s basis in that partner is 9k
General partners can be held liable for what amount owned to anyone on behalf of the partnership
The entire amount
Interest expense for debt used to purchase municipal bonds is:
Added back from book income or not added back?
Added back
Transfer pricing agreement is for:
US or non US based subsidiaries
Non US
