REG 3

Question 1

Capital Assets

Answer 1

Any asset that is owned as an investment (stock0
Any asset that you own in your personal life (boat, personal residence)

Question 2

Ordinary Assets

Answer 2

A/R
Inventory
Assets used in a trade or business NOT owned more than 1 year
ST/LT G/L does not matter

Question 3

C Corp distributions are never treated as?

Answer 3

A capital loss

Question 4

What is the order of distributions from a C corp?

Answer 4

1. Current E&P
2. Accumulated E&P
   3.

Question 5

Commercial building components are depreciated over?

Answer 5

39 years

Question 6

Residential real estate is depreciated over?

Answer 6

27.5 years

Question 7

A corporate net capital loss is generally carried?

Answer 7

Back three years and forward five years as a STCL to offset capital gains in those years.

Question 8

Depreciation computations made under the general MACRS method, the half-year convention provides that?

Answer 8

One-half of the first year’s depreciation is allowed in the year in which the property is placed in service, regardless of when the property is placed in service during the year, and a half-year’s depreciation is allowed for the year in which the property is disposed of.

Question 9

Business interest expense is limited to?

Answer 9

30% of the business’s adjusted taxable income.

Question 10

The medical expense deduction is?

Answer 10

7.5% of AGI