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Reg 2015 > Property > Flashcards

Property Flashcards

1
Q

Gift basis

A

Gain - use DB
Loss - use the lesser of DB or FMV at time of dist

DB HOLDING

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2
Q

Business gift basis

A

Whichever is lower - DB or FMV

Unless related party

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3
Q

Donor basis with gift tax

A

Gift tax paid x (FMV-DB)/(FMV-14,000)

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4
Q

Uniform capitalization rules

A

All direct and indirect costs are capitalized - unless

RETAIL, passed 3 yrs

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5
Q

Depreciation $basis of a gift

A

Transferred basis less gift tax

Versus adjusted basis:
Includes assessments legal fees to defend title

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6
Q

Stock basis time

A

Old date

Stock splits - Old basis/new number of shares

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7
Q

MACRS recovery periods

A 
3- tools
5- cars,computers, office machinery
7- office furniture, other machinery 
10 - boats, food and tobacco plants
15 - data communication plants, phone sewage billboards
20 - utilities city sewers
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8
Q

Section 179

A

Recapture 1245
Acquired unrelated party
25,000 on 200,000
2014 - use 500 on 2mil and add bonus depletion

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9
Q

ADS % and requirement

A

5-cars
10- personal property
15- agriculture
20- real estate

Required for listed, tax exempt,outside us, disc-imports

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10
Q

Bonus depletion - first year

A 
\+ sect179
50% of Agi
Purchased - 2007-2014 
Used for 50% - 2014-2015
Used for 100% - 9/2010-2011
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11
Q

Capital assets

A

For investment

Not business related

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12
Q

Dividends and basis

A

Div do not decrease basis

Excess of earnings = capital gain

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13
Q

LT CAP BASKETS

A 
0 - 15% tax bracket 37k
15% - 33% tax bracket 411k
20% - 39.6% tax bracket
25% - 25% on unrecaptured 1250 gains
28% - sale of collectibles & 1202 stock
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14
Q

Stock 1244

A

Small business 1st owner on worthless - NOL PURPOSES
50,000 per tax payer
Cap

If gain = 50% recognized

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15
Q

Market discount bonds

A

Market discount x (# days held/ # days on bond)

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16
Q

Related party’s

A

Relative - not aunt uncle cousin or in laws

Use disallowed loss - not holding period

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17
Q

Installment sales

A

One payment - sale deferral, residential timeshare, def tax and prop used in farming
NOT INVETNORY, dealer dispositions, sales with escrows

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18
Q

5yr uncollected loan - unrelated

A

ST CLOSS- no business bad debt

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19
Q

Stock repurchase w/in 30 days

A

The disallowed loss - is added to the stock basis!

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20
Q

Property basis

A

Price and costs to acquire

NOT REBATES

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21
Q

Installment sales - realized gain

A

Gross profits x (payments recvd current yr / total contract price)

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22
Q

Installment sales - recognized gain

A

Gross profit ratio x payments recvd

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23
Q

Installment sales - gross profit ratio

A

Gross profit / contract price

Gross profit = sales price - expenses - adjusted basis

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24
Q

Installment sales repossession

A

Recognize the lesser of :
Cash + other FMV in excess of gain already rec
Or gross profit in installments less repossession costs

Interest on def tax obligations : nondealer ar > 5 mil from IS DURING YR OF > 150k

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25
Sec 1031 like kind exchanges
Gain recognized: the LESSER GAIN REALIZED OR BOOT RECVD Realized gain = total value received - total value given Boot = other property + liability given up New basis = old basis + recognized gain + boot received - loss Net the mortgage = net boot paid IGNIRE IT FOR REALIZED GAIN DO NOT SUBTRACT BOOT PAID AMT FROM MORTGAGE IT AFFECTS THE NEW BASIS - not the gain realized New basis : old basis + boot paid (mortgage assumed) + cash + unlike property - gain recognized - boot received
26
Back taxes on property for purchase
Add to basis
27
Inheritance
LT cap gain FMV at time of death or 6 mo later Sell between for current FMV
28
Like kind exchanges do not include...and can only be recognized with...
Us - | No inventory
29
Involuntary conversions
No gain if complete conversion Recognized gain = LESSER Realized gain or $ not reinvested Basis = amt reinvested - deferred gain(realized gain-not reinvested)
30
Wash sale
Unalloyed loss + basis of new stock purchase and old holding period
31
Related party
``` Siblings, spouse, children, parents, SH > 50% No loss Recognize gain!!!,! Disallowed loss - forwarded Holding period - new ```
32
1231 property - casualty loss on personal property of co is investment property
St = ordinary income 1231 = real or personal business property held > 1 yr Casualty loss = net loss = ordinary loss If gain = combine with all 1231 gains If 1231 losses are > gains = Ordinary loss If gain = LT capital gain
33
1245 depreciation recapture
1245 - depreciable personal property Gain to extent of depreciation = ordinary income Lesser of : ALL DEPRECIATION or REALIZED GAIN Gains > depreciation = LT gain No 1245 LOSSES
34
1250 real property
€land, leases or buildings - Gains = ordinary income SL €11250 Remainder is 1231 gain
35
Gifts exclusions: Gift requirement estate tax exclusion Persons estate
1. Exclude all direct payments to a charity, hospital, university 2. If: present (full control, now) - exclude 14k person Must file if > 14k or is taxable Estate tax exclusion = 5.43mil Persons estate = life ins proceeds + 1/2 marital prop
36
Net estate tax
Gross estate tax + UNIFIED CREDIT (5.43m)
37
Gst and estate tax
2015 both exemptions are the same | 5.43 mil with 40% tax on overage
38
Like kind w mortgages
``` FMV new Mort old Cash rec LESS Basis old Mort new Cash giv ```
39
Parking garage Store business prop
Sect 1231 and land = 1231 | Stores do not include land
40
``` Asset classification : Capital Sec 1231 Other NA ```
Capital : personal residence, stocks, Sect 1231: parking lot, building, acquired goodwill Other : inventory, furniture NA : treasury stock
41
Estate executioner
Files final account of admin to the state
42
Fed estate tax credit may be reduced by
Foreign death taxes and tax on prior transfers
43
Estate: joint tenants and right of survivorship belongs to Revocable
Does not split value with other than wife Revocable trusts are included inestate State death taxes paid by the estate are an allowed deduction
44
Funeral expenses
Deductible by estate only
45
Gift of interest
Is a present value
46
Unified credit
Includes all other tax considerations Not an a and b , just an a Both lifetime and gift taxes are taxed on a cumulative basis
47
Federal estate tax return due
9 mo
48
Couple give two gifts - one for 17 k another for 20k what is taxable
WHusband and wife give gifts - each gift if each is split has an exlusion of $28k
49
Section 267
The buyer cannot deduct expense until seller reports income | Cash seller - accrual buyer
50
Corp ST LT Treatment
Net LTL is added to net STL | Cap losses 3k 3b5f
51
Mineral assets sold in place - what kind of assets
Capital assets
52
Compare Apt building & unimproved land
Like kind exchange | No capital interest
53
Exclusion for the two year residence gain exclusion
Prorate the benefit and apply to the gain | IF DUE TO EMPLOYMENT HEALTH OR UNFORSEEN CIRC
54
Amort 15 yr
Sec 197 intangibles
55
If you Elected to amortize the bond premium that yield taxable interest
Bond basis is reduced
56
MACRS 7 yr property - 1st yr deduction
14.29%
57
Depreciation order
Sect 179, reduce bal and do a MACRS
58
MACRS % calc
``` SL = 20% = 1/5 MACRS = 2/5 Mid qtr = 1.5/12, 4.5/12, = MACRS =40% x 5yrsx100%= 20% which leaves 80% Yr 2= 40%x(80%) = 32% which leaves 48% Yr 3= 40%x(48%) = 19.2% Yr 4= 40%x(19.2%) = 11.52% ```
59
Depreciation conventions
Mid yr Mid qtr - if use, then ALL USE Mid mo
60
Mineral / gas plant property % depletion
15%
61
Covenant not to compete amortization
15% sec 197 - gold silver copper
62
Clay mining depletion
5 or 7.5%

Reg 2015 (6 decks)

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