REG 1/7/2017 Flashcards
(37 cards)
Payments received on an inherited installment obligation are
taxable to the beneficiary at the same gross profit percentage used by the decedent
Section 179 max deduction
250 or 500 MFJ
In order to limit or revoke apparant authority
the principal must communicate revocation and/or limitation of authority to third parties
An involuntary bankruptcy petition, one filed by creditors of the bankrupt under the Federal Bankruptcy Code, places a
freeze or automatic stay on further actions taken by creditors
The statute of frauds applies only to
contracts for the sale of goods,
a transfer of interest in land,
promises to pay for the debts of another,
contracts that cannot be performed within one year.
What is parole evidence rule
Extrinsic (oral or written) evidence (i.e., outside the contract) is not admissible to add to, alter, or vary the terms of a written contract. All preliminary negotiation should have been merged into the writing.
Despite the parol evidence rule, oral evidence may be admitted as proof when:
1) of fraud, misrepresentation, duress, undue influence, lack of consideration, or illegality of the subject matter (constitutes proof, which destroys the contract).
of an oral condition precedent to the written contract:
2) proof that the parties agreed orally to a condition that had to be fulfilled before the contract became effective.
3) to explain an ambiguity or omission: evidence cannot contradict the terms of the contract but can explain them.
4)of a subsequent modification (oral or written) made to the contract. (Oral modification is acceptable if it is supported by consideration and does not violate the statute of frauds.)
How is LTCG property donated to charity deducted?
may be eligible for deduction of its fair market value rather than its lower cost basis.
How is STCG property doanted to charity deducted?
Limited to its basis
MAX AGI percentage for appreciated capital gain property donated to charity?
30% of AGI
Are death benefits received from term life insurance policy on parent taxable?
Not taxable
When should a corporation make estimated tax payments?
By the 15th day of the 4th, 6th, 9th, and 12th months of a corporation’s tax year;
Installment payments are required if the estimated tax is $500 or more.
When is a bill of lading negotiable?
when goods are “delivered to the bearer”
What effect does a state and local tax refund have on AMT?
The state tax refund is not included in income for AMT purposes. Also, state and local taxes are not deductible for AMTI purposes.
it will decrease AMTI
Are property settlements included in gross income?
No - it’s a tax free exchange
Is a rollover of a traditional IRA into a Roth IRA taxable?
YEs - because the contribution to a traditional IRA is deductible and withdrawals from a Roth IRA are tax-free, the rollover is a taxable event.
The uniform capitalization rules apply to:
real or tangible personal property produced by the taxpayer for use in a trade or business or in an activity engaged in for profit,
real or tangible personal property produced by the taxpayer for sale to customer, or
real or personal property (both tangible and intangible) acquired by the taxpayer for resale.
The uniform capitalization rules do not apply to tangible or intangible personal property acquired for resale if the taxpayer’s annual gross receipts for the preceding three tax years do not exceed
$10 million.
How much can you deduct from S Corp
is limited to amounts “at risk” in a trade or business or income-producing activity under IRC Section 465 losses. The amount at risk is the total of the taxpayer’s basis in the S corporation plus any loans that the taxpayer has made to the S corporation.
When can C corp use cash basis?
$5 million or less
FASAB the organization that will establish GAAP principles for:
federal reporting agencies
Individuals may generally avoid the penalty for failure to pay estimated tax by:
paying at least 90% of the tax shown on the current year’s return or
paying 100% of the tax shown on the prior year’s return (for individuals with AGIs of less than $150,000 in the previous year).
What is the doctrine under which a corporation is made liable for the torts of its employees, committed within the scope of their employment?
Respondeat superior
What is the ultra vires act?
is a doctrine that forbids an act by a corporation that is beyond the scope of its powers as specified in its articles of incorporation and under state law
