REG 6 Flashcards
Prepaid rent must be included in income in the year received regardless of the period covered or the accounting method used.
Prepaid rent must be included in income in the year received regardless of the period covered or the accounting method used.
Although taxpayers may generally choose to use either the cash or the accrual method, the cash method cannot generally be used if inventories are necessary to clearly reflect income, and cannot generally be used by C corporations. Taxpayers permitted to use the cash method include a qualified personal service corporation, and an entity (other than a tax shelter) if for every year it has average gross receipts of $25 million or less for any prior three-year period and does not have inventories.
Although taxpayers may generally choose to use either the cash or the accrual method, the cash method cannot generally be used if inventories are necessary to clearly reflect income, and cannot generally be used by C corporations. Taxpayers permitted to use the cash method include a qualified personal service corporation, and an entity (other than a tax shelter) if for every year it has average gross receipts of $25 million or less for any prior three-year period and does not have inventories.
The uniform capitalization rules generally require that all costs incurred in acquiring property for resale must be capitalized as part of the cost of inventory. The costs that must be capitalized include the costs of purchasing, handling, processing, repackaging and assembly, as well as the costs of off-site storage.
The uniform capitalization rules generally require that all costs incurred in acquiring property for resale must be capitalized as part of the cost of inventory. The costs that must be capitalized include the costs of purchasing, handling, processing, repackaging and assembly, as well as the costs of off-site storage.
Beginning in 2018, an employee can no longer deduct moving expenses nor can an employer pay or reimburse an employee’s moving expenses on a tax-free basis.
Beginning in 2018, an employee can no longer deduct moving expenses nor can an employer pay or reimburse an employee’s moving expenses on a tax-free basis.
A single individual with AGI over $73,000 for 2018 would only be entitled to an IRA deduction if the taxpayer is not covered by a qualified employee pension plan.
A single individual with AGI over $73,000 for 2018 would only be entitled to an IRA deduction if the taxpayer is not covered by a qualified employee pension plan.
If IRA contributions are deductible, they are always deductible from gross income in arriving at adjusted gross income.
If IRA contributions are deductible, they are always deductible from gross income in arriving at adjusted gross income.
A partnership functions as a pass-through entity and its items of income and deduction are passed through to partners on the last day of the partnership’s taxable year. Income and deduction items pass through to be reported by partners even though not actually distributed during the year.
A partnership functions as a pass-through entity and its items of income and deduction are passed through to partners on the last day of the partnership’s taxable year. Income and deduction items pass through to be reported by partners even though not actually distributed during the year.
Beginning in 2018, miscellaneous itemized deductions subject to 2% of AGI phase-out are not deductible.
Beginning in 2018, miscellaneous itemized deductions subject to 2% of AGI phase-out are not deductible.
Under the UCC, if the parties agree in good faith to a modification of their contract, then that modification is enforceable even if there is no additional consideration. Also, under the UCC, the contract can be modified through the good faith agreement of the parties with only one side receiving additional consideration.
Under the UCC, if the parties agree in good faith to a modification of their contract, then that modification is enforceable even if there is no additional consideration. Also, under the UCC, the contract can be modified through the good faith agreement of the parties with only one side receiving additional consideration.
Net capital losses of up to $3,000 for individuals are deductible in arriving at AGI
Net capital losses of up to $3,000 for individuals are deductible in arriving at AGI
For itemize deductions you can only deduct income tax or sales tax. It can’t be both, so you’ll choose the higher of the two.
For itemize deductions you can only deduct income tax or sales tax. It can’t be both, so you’ll choose the higher of the two.
self-employment tax is not deductible as an itemized deduction. Instead, a portion of the self-employment tax is deductible from gross income in arriving at adjusted gross income.
self-employment tax is not deductible as an itemized deduction. Instead, a portion of the self-employment tax is deductible from gross income in arriving at adjusted gross income.
An individual qualifies as a taxpayer’s dependent for purposes of the medical deduction if the individual is of a specified relationship or a member of the taxpayer’s household, is a U.S. citizen or resident, and the taxpayer provides more than half of the individual’s support.
An individual qualifies as a taxpayer’s dependent for purposes of the medical deduction if the individual is of a specified relationship or a member of the taxpayer’s household, is a U.S. citizen or resident, and the taxpayer provides more than half of the individual’s support.
the nonprescription drugs do not qualify as deductible medical expenses.
the nonprescription drugs do not qualify as deductible medical expenses.
Even back taxes can be deducted by Burg as long as he was the owner of the property during the period of time to which the back taxes are related.
Even back taxes can be deducted by Burg as long as he was the owner of the property during the period of time to which the back taxes are related.
