Mnemonics Flashcards
HIM DEAD
No Penalty Tax:
Home-buyer
Insurance-medical
Medical expense
Disability
Education
And
Death
HIDE IT
Not taxable:
Homeowner exclusion (500,000 MJF)
Involuntary exchange (no gain recog)
Divorce property settlement
Exchange of like-kind
Installment sale
Treasury & capital stock
3.WRaP
Not deductible:
Wash sale losses
Related party losses losses (family, >50% owned)
And
Personal losses
HIPPE
Deductible Interest (to arrive AGI)
Home mortgage (home mortgage= $1,000,000; home equity = $100,000)
Investment
Personal (consumer)
Pre-paid
Educational loan ($2,500)
PANIC TIMME
AMT Adjustment (Individual):
+Passive loss
Accelerated depreciation
NOL
Installment sale income from dealer
Contracts - % vs. complete
+Tax deductions
+Interest deductions on home equity loans - (add back not for home portion)
+Med deductions (10% not 7.5%)
+Misc. deductions (add back 2%)
+Exemptions (personal) and standard deduction
FACCE
AMT Credits (Individual):
Foreign tax
Adoption
Child tax
Contribution to retirement plan
Earned income
3P
AMT Preference items (Individual + Corp)
Private bond
Pre-1987 accelerated depreciation
Percentage depletion deduction
ACE your MIND
(Adjusted Current Earnings - AMT Corp)
Municipal (or any tax exempt) interest income
Increase in CSV life insurance
Non SL depreciation
DRD (<20% owners, with 70% deduction)
CHRIST
Exempt Organizations not filing annual return:
Churches
High Schools - religious
Religious orders - priest, nun
Internal-supported groups
Societies - missionary related
Tax exempt - organized by Congress
DAMS
Fundamental Corporate Changes that require shareholders’ approval:
Dissolution
Amendment to the article
Mergers, consolidation, compulsory share exchanges
Sale of substantially all the corporation’s assets outside the regular course of business
RISE
Common Laws cover:
Real estate
Insurance
Services
Employment
MAIDS
Fraud:
Material misrepresentation
Actual & reasonable reliance
Intent
Damage
Scienter
MY LEGS
Statue of Frauds
Marriage > 1
Year
Land
Executors (to pay estate debt out of personal funds)
Goods > $500
Surety (pay the debt of another person)
SWAP
Exceptions to Statue of Frauds (UCC) - no writing needed
Specially manufactured goods
Written confirmation (bind it if not object by 10 days)
Admitted in court
Performed
SAVR
Attachment (creditor vs. debtor)
Security
Agreement
Value given by creditor debtor has
Rights to the collateral
CPR’S
Defense of Surety (discharge surety)
Creditor = bad guy
Payment or Tender of Payment(by debtor/3rd party)
Release of principal debtor covenant not to Sue (NOT discharge)
RIBS
NOT file Chap.7
Railroads
Insurance companies
Banks S&L
BIBS
NOT file Chap. 11
Brokers
Insurance
Banks
S&L
WAFTED
Debts not discharged under Chap 7,11
Willful & malicious injury
Alimony Fines, debts from
Fraud
Taxes due <3 years
Educational Loans
Debts undisclosed in bankruptcy petition
SAG WEG CTI
Priorities for distribution of debtor’s estate secured creditors
Support to spouse and children
Admin. fees
Gap Claims
Wages ($11,725)
Employee benefits ($11,725)
Grain farmers & fishermen ($5,775)
Consumer deposit ($2,600)
Tax claims
Intoxicated driving unsecured creditors
BRINGS B/C
No required registrations (not covered by 1933 Act:
Banks
Railroads (common carriers)
Insurance POLICIES (but their securities need to register)
NFP
Government
Short-term commercial paper (<9mo)
Bankruptcy (issued under Chap 11)
Church
LAM
Sec. 11 need to prove:
Loss
Acquired stock
Material misrepresentation and omission (Don’t need reliance + scienter, but Rule 10b-5 do)
5% TIP
1934 Reporting requirement
10K,10Q,8K >=5% Owners
Tender offers
Insider (>10%) shareholders
Proxy solicitations (vote) and statements
NIRD
Personal Holdings Company (PHC) income includes:
Net rent (if <50% ordinary income)
Interest - taxable portion
Royalties (no mineral, oil/gas, copyright royalties)
Dividends
