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cpa regulation > ninja points > Flashcards

ninja points Flashcards

1
Q

PHC can deduct

A

dividends paid & consented too

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2
Q

warehouse receipt when does title transfer

A

when negotiable instrument is received

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3
Q

estate taxes deductible

A

charity, funeral, marital

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4
Q

flex spending account

A

500 carryover or grace period up to march 15

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5
Q

token gifts

A

one time deal,dont impair independance

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6
Q

cpa direct mailers

A

cpa is not allowed to associate

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7
Q

Fasb overruled

FASB does

A

yes

improve financial standards for non government entities

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8
Q

complaint form rules

A

based on states

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9
Q

cpa finds an error

A

1st go to client

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10
Q

1943 act 105-b type of suits

A

criminal & civil liability

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11
Q

CPA records to a firm taking over

A

must have consent of client

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12
Q

neglience gives CPA liablility to which parties

A

ANY known third party who RELIED

Ultramarites case only third parties in PRIVITY - excludes foreseen

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13
Q

third party beneficiary must prove

A

materiality, damage, negligence, and reliance

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14
Q

CPA states a fee; what goes against Principles of Ethical Conduct

A

actual fee would substantially higher

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15
Q

Federal Financial Receipient Audit what office is responsible

A

Government Accountability Office

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16
Q

regulation agency

A

government group

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17
Q

CPA not liable for tax damages caused by

A

refusing to sign a filing extension

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18
Q

Negliegence must prove

A

legal duty, breach, damage, proximate cause

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19
Q

Expenses a CPA must

A

inquire about the EXISTENCE of documentation

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20
Q

C Corps accounting method

A

made on initial tax return

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21
Q

What comes after trail courts

A

US court of appeals

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22
Q

IRS seizing for penalty taxes

A

SD and allowable personal exemptions *52

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23
Q

organizational expenses threshold

A

anything over 50K not allowed to take the 5K immediate deduction; amount over 5K reduces the 5K amount

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24
Q

tax year end in the middle of the month

A

52-53 week year

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25
Q

LLC that doesn’t file for 8832

8832 is

A

partnership

8832 - form to elect out of default classification

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26
Q

not IRS examination

A

VERBAL

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27
Q

estimated payments time frame

A

15th day of each 4 quarters of corps tax year

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28
Q

exemption from federal tax income

A

title holding organizations; civic organizations benefiting communities; labor orgs. consisting of employees; buisness associates to promote common buis. interests

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29
Q

penalty applies to

A

any SUBSTAIN understatement

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30
Q

under 25k tax case

A

make a small case request

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31
Q

writ of certieri

A

supreme court petition to review a lower courts decision

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32
Q

tax decisions consider

A

tax and non tax considerations

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33
Q

repossession taxpayer recognizes

A

gain and loss

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34
Q

UTP

A
  • specific info regarding uncertain tax positions (multiple positions
  • 1120 and 1120 forms
  • assets over $100 million
  • F/S
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35
Q

postmarking

A

date a return in filed

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36
Q

to avoid underpayment

A

include AMTI

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37
Q

permananent differences between taxable income and pre-taxable income

A

neither intra nor inter period

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38
Q

most freely transferable

A

corp

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39
Q

safe habour

A

same as estimated tax rule 100% of preceding year

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40
Q

listed property disallows

A

non-buisness to not reduce by 179

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41
Q

treaty

A

formal contract multinational law

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42
Q

taxpayer 1st time new tax year

A

due date using tax year

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43
Q

corporation short-period taxation formula

A

calculate annualized income; then # of months calculation

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44
Q

installment payment of current year tax

A

pay interest and penalties

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45
Q

IRS publications

A

not primary source of tax research

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46
Q

use tax

A

when sales not is not imposed on items

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47
Q

corp bad debts

A

direct charge off

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48
Q

work product doctrine

A

protects work product fro detection

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49
Q

uniform capitalization threshold

A
  • only exceeding 10million receipts 3 preceding years

- tangible real or personal property

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50
Q

unacceptable inventory method

A

base method

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51
Q

annualizing tax rate

A

12 month period marginal tax rates used (important for short-year)

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52
Q

changes in examination signed by an agreement

A

paid in 21 days and less than $100 million, no penalty or interest

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53
Q

partnership filing

A

15th day fourth month after TAX YEAR END

54
Q

Sole Proprietors/ Farmers method

A

inventories must use accrual

55
Q

1st year depreciation

A

double declining 200% (2/7)

56
Q

VAT tax

A

each stage of production process; form of consumption tax

57
Q

goal of tax planning

A

optimizing the tax payers after tax result

58
Q

IRS can collect taxes how many years after assessed?

A

10

59
Q

receive stock for service what is the gain on TR

A

FMV at the date of gift NOT FMV of services

60
Q

completed contract revenue recognition

A

after the contract is satisfactory completed

61
Q

inherited installment obligation

A

taxable to beneficiary at decedents rate

62
Q

look back rule

A

recal. annual profit reported on a contact

63
Q

FEDERAL TAX EXEMPT

A

social clubs with limited social use
political orgs
Frats must operate under the lodge system

64
Q

unified rate schedule

A

lifetime gifts and transfers at death taxed on a cumulative basis

65
Q

179 formula

A

price-25K (2/MACRS years).5 = A

A+25K = final answer

66
Q

normally leases
paid by landlord to terminate are ordinary
unless specifically stated as a capital asset w/ no basis then

A

capital gain

67
Q

federal gift tax excludes

A

direct payments INCLUDING POLITICAL

68
Q

oil and gas depletion

A

15%

69
Q

267 rule

A

cash basis seller - accrual basis buyer

70
Q

taxable treatment for short term capital gains

A

ORDINARY INCOME

71
Q

taxable gift exclusion limited to

A

present value gifts

72
Q

covenant

A

intangible asset 15 year amort. life

73
Q

replacement property basis

A

purchase price - less allowance received

74
Q

gift property sold at a LOSS
normally gifts/sales valued at
inheritance

A

lesser of basis or fmv
donor basis
always FMV

75
Q

business assets long term at a loss treatment

A

section 1231

76
Q

relative does recognize a transaction when

A

they are at a loss

77
Q

marital deduction exclusion

A

contingent gift

78
Q

when you use SD how are refunds treated

A

no refund because tax Benefit rule does not exist

79
Q

charitable income

50% limitation

A

is subject to phase outs

80
Q

car personal property tax only deductible if

A

imposed annually and assessed in proportion to value

81
Q

homeowners exclusion special provisions

A

if spouse lives in the home longer than there time living in it can be considered part of the two years

82
Q

Domestic Service subject to SS and medicare

Domestic Service Withholding

A

over 1800 to one employee in a calendar year

at employees request

83
Q

transferred life insurance policy

A

policy amount - basis = gain

84
Q

high income tax payers itemized reduced by

A

lesser of 3% of excess of AGI income over the applicable amount or 80% of certain itemized

85
Q

individual funeral expenses

A

not deductible

86
Q 
tax credits:
general buisness
foreign tax 
oil recovery
minimum tax credit
A

multiple credits

2-4 = specific credits

87
Q

IRA phaseout calc.

A

amount between 181 - 191 = 10

amount over phase out * 2 / 10 = AMOUNT CONTRIBUTION MUST BE REDUCED BY

88
Q

2014 cancellation of a mortgage must be reported as

A

income

89
Q

non discriminatory

A

70% of all employees & same benefit for all

90
Q

oil royalties

A

supplemental income and loss

91
Q

businesses can deduct for interest expense

A

amount used for business

92
Q

IRA new home buyer limitation

A

2years

93
Q

NON-refundable security deposits

A

are considered revenue

94
Q

net business loss must be offset

A

wages and rental income for the year

95
Q

personal losses (ex personal auto)

A

non-deductible as a capital loss

96
Q

earned income credit does not allow

A

pension or

97
Q

illegal activities

A

can deduct COGS

98
Q

S Corp health insurance

A

tax to owners owning over 2%

99
Q

EE Series

A

issued after 89, taxpayer over 24, & individual or joint with spouse

100
Q

Roth IRA tax free for over 60, how long must you keep it in

A

5 years

101
Q

Obama Care prices

A

adult 95, child half

102
Q

chartiable car rate

A

14 cents per mile

103
Q

traditional to Roth IRA rollover

A

taxable

104
Q

work opportunity credit

A

120 hours

105
Q

tax assessments itemized deduction

A

only repairs and maintenance

106
Q

joint return excludes

A

foreigners, different tax years

107
Q

home equity indebtedness is the lesser of

A

amount OR FMV of property reduced by outstanding loans

108
Q

Partnership liabilities

A

not cash not mortgage

109
Q

who can’t deduct fringe benefits

A

sole proprietors; s corps under 2% yes

110
Q

syndication costs

A

promoting or selling

111
Q

allocation to trust principle

A

no yearly expenses, which are allocated to income

mortgage principle payments yes

112
Q

cash received in excess of partnership & land received as well

A

cash is the only gain recognized

113
Q

3 elections made at the partner level

Partnership elections

A

1- depletion
2- reduction of basis of depreciable property
3- foreign taxes

4-account method
5- amort. period
6- cost recovery
7 - R&D

114
Q

Corps loss on stock redemption

A

when liquidation is complete

115
Q

Partnership sale formula

A

A) recognize the amount of sale

b) recognize relieve liablities
c) subtract original basis
d) gain is a capital gain/ loss only recognized up to 3k

116
Q

dni does not include

A

long-term capital gains to corpus

117
Q

partnership property distribution
1-nonliquidation
2-liquidation

A

1-basis

2-fmv

118
Q

bingo games

A

not unrelated UBI

119
Q

testamentary trust

A

after death

120
Q

annual information return

A

PF and NPOS over 25K

121
Q

corp goodwill

A

amount paid for assets - fmv of assets transferred to corp

122
Q

ubi

A

not related to a NPO mission

123
Q

partnership basis

A

reduced by distribution 1st

124
Q

trusts taxability

A

whoever gets the money is taxed

125
Q

built in gains corp is subject to

A

35% tax and NOL and capital loss deduction

126
Q

NOL and charitable contributions and DRD

A

NOL doesn’t allow charitable only allows DRD

127
Q

included in tax benefit rule

A

bad debts received

128
Q

Itemized threshold amount

A

AGI

129
Q

passive income versus portfolio income

A

P&L — interest, dividends, ect.

130
Q

AGI phaseout for IRA deduction

A

between 96 & 116

131
Q

at risk applies to

A

partner not partnership

132
Q

personal short-term gains

A

ordinary losses

cpa regulation (5 decks)

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