Random shit Flashcards
when calculating gain of a transferred property, do you use FMV or owner’s original basis?
The owner will transfer basis over, so take basis
What is amount realized?
Total considerations - basis
How do you calculate the amount realized when a partner sells his basis in a partnership?
Cash +recieved + pro-rated (liability)
ignore basis
What happens to any excessive distribution over a stock holder’s basis?
think of it this way
AEP -> ROC -CAP
since there is no AEP or ROC, it would be taxed as capital gains
Which things are used to considering the cost of maintaining a household?
mortgage or rent expense, utility charges, food consumed in the home, and repair and maintenance costs.
What is the necessary condition for a corporation to achieve successful voluntary dissolutions
1) A Recommendation by the board of directors
2) Approval by a majority of voting shareholders
What to do about repocession?
must recognize any gain or lost
Estate exclusion can carry over between spouses
yeah
What is the tax consequences when a corporation cancels a shareholder’s debt without repayment?
the cancelled amount would be treated as a distribution to the shareholder
What is the limit for tax exemption for group term life insurance?
150k. and that amount would be used to figure out the amount
If an individual has short term and long term loss how much would it affect their income?
3k per year and 6k to be carried forward indefinatelty
Who can use the reserve method for calculating bad debt?
small banks and thrift institutions
Who can use the charge off method?
nearly all cash, accrual taxpayers including corporations
What is Home equity indebtedness is limited to the lesser of:
the FMV of the qualified residence, in excess of the acquisition indebtedness with respect to that
residence, or
$100,000 ($50,000 if married filing separate).
How can a S corp be revoked?
If requires a majority of all class of its stock
