REG 2 Flashcards
An S corporation must generally have only one class of stock, be a domestic corporation, and confine shareholders to individuals, estates, and certain trusts. An S corporation need not be a member of a controlled group.
An S corporation must generally have only one class of stock, be a domestic corporation, and confine shareholders to individuals, estates, and certain trusts. An S corporation need not be a member of a controlled group.
For a business, a Chapter 7 case is the final step in shutting down the business. Businesses that file under Chapter 7 do not continue operation.
For a business, a Chapter 7 case is the final step in shutting down the business. Businesses that file under Chapter 7 do not continue operation.
In bankruptcy - Consumer debts of up to $6,425 may be made without showing a preference, as can alimony and child support payments.
If the payment were more than $6,425, then the 90-day rule would make the payment preferential, because the credit card balance was an antecedent debt, or one that existed when the bankruptcy was filed.
In bankruptcy - Consumer debts of up to $6,425 may be made without showing a preference, as can alimony and child support payments.
If the payment were more than $6,425, then the 90-day rule would make the payment preferential, because the credit card balance was an antecedent debt, or one that existed when the bankruptcy was filed.
Once a bankruptcy petition is filed, the enforcement of any lien against this property is stopped pending a resolution through bankruptcy proceedings.
Once a bankruptcy petition is filed, the enforcement of any lien against this property is stopped pending a resolution through bankruptcy proceedings.
A debtor’s estate in bankruptcy consists of all tangible and intangible property of the debtor held at the commencement of the bankruptcy proceedings. In addition, the estate consists of any after-acquired income from such property.
Therefore, interest from municipal bonds (held as part of the estate) also becomes part of the estate. Any gifts received within 180 days of the filing the petition also become part of the estate. All other payments received after the filing of the petition are not considered income from the existing debtor’s (bankruptcy) estate.
A debtor’s estate in bankruptcy consists of all tangible and intangible property of the debtor held at the commencement of the bankruptcy proceedings. In addition, the estate consists of any after-acquired income from such property.
Therefore, interest from municipal bonds (held as part of the estate) also becomes part of the estate. Any gifts received within 180 days of the filing the petition also become part of the estate. All other payments received after the filing of the petition are not considered income from the existing debtor’s (bankruptcy) estate.
Fiduciaries—Trusts and estates can be taxed on the income that accrues during the administration of the fiduciary. The trust/estate is taxed on income retained by the fiduciary and not distributed currently to beneficiaries. Income distributed to beneficiaries is reported as income during the beneficiary’s tax year in which the estate year ends.
Fiduciaries—Trusts and estates can be taxed on the income that accrues during the administration of the fiduciary. The trust/estate is taxed on income retained by the fiduciary and not distributed currently to beneficiaries. Income distributed to beneficiaries is reported as income during the beneficiary’s tax year in which the estate year ends.
Trust: A legal entity created by transfer of property from a grantor. The purpose of the trust is to hold and administer property for beneficiaries according to the terms of the trust instrument. The trust exists for the period determined by the trust instrument and state law.
Trust: A legal entity created by transfer of property from a grantor. The purpose of the trust is to hold and administer property for beneficiaries according to the terms of the trust instrument. The trust exists for the period determined by the trust instrument and state law.
Simple Trust: A trust that (1) must distribute all income currently, (2) make no distributions of corpus currently, and (3) make no current charitable contributions. Any trust that does not qualify as simple must be complex.
Simple Trust: A trust that (1) must distribute all income currently, (2) make no distributions of corpus currently, and (3) make no current charitable contributions. Any trust that does not qualify as simple must be complex.
Grantor Trust: A trust controlled by the grantor through retained powers or the possibility the property in the trust will revert to the grantor.
Grantor Trust: A trust controlled by the grantor through retained powers or the possibility the property in the trust will revert to the grantor.
The corpus of a trust is the sum of money or property that is set aside to produce income for a named beneficiary. In the law of estates, the corpus of an estate is the amount of property left when an individual dies.
The corpus of a trust is the sum of money or property that is set aside to produce income for a named beneficiary. In the law of estates, the corpus of an estate is the amount of property left when an individual dies.
Income earned by a trust that is distributed to the income beneficiary, such as the dividends and interest, is taxed to the income beneficiary. If the income is retained by the trust, it is taxed to the trust.
Income earned by a trust that is distributed to the income beneficiary, such as the dividends and interest, is taxed to the income beneficiary. If the income is retained by the trust, it is taxed to the trust.
In trusts - Only extraordinary items are allocated to principal; that is, payments that are made irregularly. Regular payments are allocated to interest
In trusts - Only extraordinary items are allocated to principal; that is, payments that are made irregularly. Regular payments are allocated to interest
Income is only included on a cash-basis taxpayer’s final income tax return if the taxpayer had actually or constructively received the income before death. After death income with respect to the decedent is reported by the decedent’s estate. Thus, income in respect of a cash-basis decedent covers income earned before the taxpayer’s death but not collected until after death.
Income is only included on a cash-basis taxpayer’s final income tax return if the taxpayer had actually or constructively received the income before death. After death income with respect to the decedent is reported by the decedent’s estate. Thus, income in respect of a cash-basis decedent covers income earned before the taxpayer’s death but not collected until after death.
Ordinary and necessary administration expenses paid by the fiduciary of an estate are deductible either in computing the estate’s taxable income for income tax purposes or in computing the decedent’s taxable estate for estate tax purposes. For the deduction to be taken for income tax purposes, the estate tax deduction must be waived
Ordinary and necessary administration expenses paid by the fiduciary of an estate are deductible either in computing the estate’s taxable income for income tax purposes or in computing the decedent’s taxable estate for estate tax purposes. For the deduction to be taken for income tax purposes, the estate tax deduction must be waived
Any gains that are allocable from CORPUS are not included in trust income
Any gains that are allocable from CORPUS are not included in trust income
