mike ross consumption Flashcards
a company has 8 unsecured creditors to which it owes $7,000 to each. how many creditors does it take to file for an involuntary bankruptcy?
3
although only 1 unsecured creditor is required, the total debt owed must exceed $18,600. so it takes 3 unsecured creditors to petition for involuntary bankruptcy
what type of property is included in a debtor’s bankruptcy estate 180 days after filing for BK?
life insurance proceeds
inheritance
divorce settlements
why are gifts with future interests taxable?
it’s technically not a gift since benefits cannot be enjoyed immediately
with respect to penalties related with aiding and abetting understatements of tax liability on a tax return:
the burden of proof shifts to the IRS from a taxpayer
a general BK discharge is denied if the debtor failed to
- preserve books
- identify asset whereabouts
list non-dischargeable debts (WATTSUPP)
writing a false financial to obtain a loan
alimony and child support
torts - willful and malicious
taxes
student loans
unlisted debts
prior bankruptcy
penalties and fines
substitute contract vs novation
diff contract, same parties
same contract, diff parties
ch 7 vs ch 11 bankruptcy
liquidate assets vs reorganization using plan
rank the following from highest authority to lowest:
private letter ruling
revenue ruling
treasury regulations
internal revenue service publications
treasury regulations
revenue ruling
private letter ruling
internal revenue service publications
why do general partners take on recourse debt, while limited partners do not?
limited partners are limited to the amount invested in the partnership. general partners are liable to debts, even when it exceeds their amount invested
what’s a written advice?
listed tax transaction in writing
what is the qualifying child test?
related and under 19 (or 24 if full time student)
live with taxpayer for at least 6 months
child may not contribute more than half of their support
what is the qualifying relative test?
must live with taxpayer for the entire year
gross income is under $4,400
what are the AGI limitations for donating:
property
cash
30%
60%
eligible exemption on taxable income for:
simple trust
complex trust
$300
$100
