Reg 7

Question 1

Title insurance policy

Answer 1

Must be included in property basis

Question 2

Property used for both personal and rental

Answer 2

If the residence is personal used more than 14 days, any net loss from the rental of the property will be disallowed

Also: al related expenses must be divided between personal and rental use

Question 3

Taxable income

Answer 3

Net income per book + federal income taxes pero books + charitable contributions per books - tax depreciation in excess of books = taxable income before charitable contributions * .10
- charitable contribution = taxable income

Question 4

This item must be separately stated on form 1120S US Income Tax Return for an S corporation, schedule k-1

Answer 4

Gain or loss from the sale of collectibles

Question 5

Form 1120-F US Income Tax Return of a Foreign Corporation:

Answer 5

Income earned by a US branch

Question 6

Form 1120 US corporation income tax return

Answer 6

Income earned by US business activities organized as US subsidiary.

Question 7

Person lived 2 in year in a personal home

Answer 7

If married: $500,000 exclusion

Single: 250,000 exclusion

Question 8

After filing a registration statement

Answer 8

It is lawful to make oral offer to sells shares

Question 9

Offering made under provisions of Regulation A

Answer 9

File an offering circular with the SEC

Question 10

Under chapter 7, s discharge discharges most debts of a debtor

Answer 10

The debtor relieved of any personal liability yo the judgement creditor

Question 11

Estate initial taxable period for a decendent who died

Answer 11

May be either a calendar year or a fiscal year beggining on the date of the decendent death

Question 12

Initial basis partnership

Answer 12

Pendiente: a quien te peeguntan

Question 13

Purchase of art object at church bazaar

Answer 13

Only the excess over fair market vaue is deductible

Question 14

Secured interest that has not attached to the collateral

Answer 14

Not effective nethier the debtor lr third parties

Question 15

Net capital loss max deduction at adjusted gross income (individual)

Answer 15

$3000

Question 16

Estate distribution net income

Answer 16

Taxable income - expenses

Question 17

Taxable income formula

Answer 17

Interest jncome from a checking account + interest income from a monetary market account + interest income from federal bonds

Question 18

A clause in a contract that provides for liquidating damages will be enforceable

Answer 18

If the amount of the downpayment bears reasonable relationship to the probable loss

Question 19

Incentive stock option

Answer 19

No recognition of compensation expense

Question 20

If a stock executed sale

Answer 20

Short-term gain or loss

Question 21

If a person receives an interest in the capital of a partnership as a result of prior employment servicemen

Answer 21

Ordinary income

Question 22

Liability of a coa for services rendered

Answer 22

A cos does not guaranteed everything to be accurate, only that the work was performed in a component and professional manner

Question 23

Benefit of election to S corporation

Answer 23

The corporation capital losses can be claimed on the tax return of the shareholders

Question 24

A suit for common law fraud may succeed only in f the cpa

Answer 24

Acted with scienter