REG 2

Question 1

The donation of appreciated stock held more than 12 months is limited to in deductibility of AGI of what % and can be carried?

Answer 1

30%, and can be carried forward for up to five years, subject to the 30% limitation in the carryforward years.

Question 2

A C corporation that makes an S election and has unrealized built-in gains in its assets as of the election day must pay a built-in gains tax on this appreciation if it is recognized within?

Answer 2

The next 5 years at a rate of 21%

Question 3

What is the “stock ownership test” that is required to be classified as a personal holding company?

Answer 3

That more than 50% of the outstanding stock must be owned directly or indirectly by five or fewer individuals.

Question 4

If a corporation makes a nonliquidating distribution of appreciated property to a shareholder, the corporation must recognize gain just as if the property were sold at?

Answer 4

Its fair market value. A liability increases the recognized gain only when the amount of liability exceeds fair market value.

Question 5

Earned income credit is disallowed if unearned income, such as interest, dividends, tax exempt interest and other investment income exceeds?

Answer 5

$11,000

Question 6

Are corps allowed to use the reserve method or the direct charge-off method in accounting for bad debts?

Answer 6

Direct charge-off method

Question 7

Itemized Deductions: Charity

Answer 7

Cash contributions 60% AGI
Property contributions 30% AGI

Question 8

Who is considered a qualifying child?

Answer 8

Under the age of 19 or 24 full-time student and live with the taxpayer for 50% or more for the year

Question 9

How many years is goodwill amortized over?

Answer 9

15 years or 180 months

Question 10

Dividend Received Deduction

Answer 10

0-19% 50% DRD
20-79% 65% DRD
80-100% 100% DRD