MISC Flashcards
How are the taxable premiums to an individual calculated?
Premiums for coverage in excess of $50,000 of coverage are taxable to the employee.
What is PMSI?
Purchase Money Security Interest. A PMSI in non-inventory collateral has priority over the interest of a trustee in bankruptcy if the PMSI is perfected under state law and within the permissible time after the debtor receives possession of the collateral.
What is SWAP?
Specially manufactured goods
Written confirmation
Admitted in court
Performed (enforceable to the extent of the performance of the party sought to be held liable)
What does the Statute of Frauds require?
The Statute of Frauds requires contracts involving the sale of goods to be evidenced by a writing if the price is $500 or more. However, if any of the SWAP exceptions apply, an oral contract will be enforceable even without a sufficient writing.
What is a restriction on a medical home improvement?
The cost of a home improvement is an allowable itemized medical deduction to the extent it exceeds any increase in the fair market value of the home (subject to the AGI floor)
What does the 1934 Act regulate?
The 1934 Act regulates trading of securities after their initial issuance and includes certain reporting requirements (10K, 10Q, 8K, insiders, tender offers, proxies). Compliance is required if securities are listed on a national exchange or there are at least 500 shareholders in any class of securities issued and the issuer has at least 10 million dollars in assets.
When is mortgage interest an add-back for AMT purposes?
Interest paid on a home equity loan is an add-back for AMT purposes if the taxpayer did not use the proceeds to buy, build, or improve his/her principal residence and/or one other residence.
When does the penalty for failure to file information returns of tax preparers not apply?
The penalty for failure to file information returns of tax preparers does not apply to the extent that the failure to file is due to reasonable cause and not due to willful neglect.
When can an offer be revoked?
An offeror can revoke an offer any time up until the offeree accepts the offer. Under the mailbox rule, an offer is deemed accepted at the moment an acceptance is mailed. An offeror may opt out of the mailbox rule by providing that an acceptance must be received to be effective.
When does an S-Corp election become effective?
S Corporation elections must be made by the 15th day of the third month of the taxable year. If the election is made after that date, the election becomes effective on the first day of the next taxable year.
What is privity?
Privity
When is a bill of lading negotiable?
A bill of lading is issued by a common carrier. It is negotiable if the goods are to be delivered to order or bearer.
What is a HDC?
Holder in Due Course - a holder who takes an instrument for value, in good faith, and without notice of any defenses or claims to the instrument.
What is an accord and satisfaction?
An accord is where both parties agree to new terms that vary form the original contract such that fulfilling the terms of the new agreement will discharge the old agreement completely. When the agreement is fulfilled, the fulfillment is called a satisfaction.
When does personal holding company status apply?
Personal holding company status applies if a corporation is owned more than 50% by five or fewer individuals at any time during the last half of the tax year and at least 60% of the adjusted ordinary gross income for the tax year is personal holding company income (which would include income from investments in stocks and securities).
