REG

Question 1

When are net passive losses in rental income phased out?

Answer 1

These losses are reduced by 50% of the excess of the taxpayers AGI, with the amount completely phasing out when AGI is in excess of $150,000

Ex. 150,000-130,000 (AGI)=20,000; 20,000*50%=10,000

Question 2

Any excess capital losses remaining may be carried?

Answer 2

Forward indefinitely only

Question 3

Common stock is considered?

Answer 3

Capital and limited to $3K annual losses

Question 4

Individuals will be required to pay 110% of last year’s tax if prior year AGI exceeds?

Answer 4

$150K

Question 5

How much of the employer payment of employee’s educational exps are excluded?

Answer 5

$5,250 is excluded

Question 6

How many days must property be rented for it to be considered rental property?

Answer 6

More than 15 days

Question 7

Involuntary petition may succeed if the aggregate of unsecured claims equals or exceed?

Answer 7

$18,600

Question 8

What is the amt of ordinary loss that is limited to on stock that is worthless under Sec. 1244?

Answer 8

$50,000/$100,000 joint return

Question 9

What does MACRS five-year property classification include?

Answer 9

Autos and taxis
Light and heavy general-purpose trucks
Calculators
Copiers
Computers
Peripheral equipment

Question 10

What does MACRS seven-year property classification include?

Answer 10

Office furniture
Fixtures
Equipment
Agricultural machinery and equipment.