R5&R6 Flashcards
What pair of business entities can make a distribution of appreciated property to its owners that is not taxable to owners?
GP and LLP
Does an accountant need to obtain client permission from client to show records to prospective buyer?
No - as long as the prospective buyer does not disclose th any confidential information.
What are the 5 elements of common law fraud?
- Misrepresentation of material fact
- SCIENTER (intent to deceive)
- Actual & Justifiable reliance
- Intent to induce reliance
- Damages
What is the main difference for the exam for fraud vs negligence?
Due care = negligence
Scienter = frau
What are the 4 elements of Common Law Negligence?
- defendant owed a duty of care to plaintiff
- defendant breached duty of care
- the breach was the actual & proximate cause of the loss
- Plaintiff suffered damages
The burden of proof shifts to the IRS from the taxpayer in what penalty?
aiding and abetting
When forming a corporation - when the control group represents 80% how is boot recognized?
Boot is recognized to the extent that liabilities exceed NBV