REG Mnemonics

Question 1

CARES - Qualifying Child

Answer 1

C - Close Relative
A - Age
R -  Residency
E - Eliminate Gross Income (person does not have enough income)
S - Support (more than half)

Question 2

SUPORT - Qualifying Relative

Answer 2

S - Support (more than 50%)
U - Under Gross Income
P - Precludes MFJ
O - Only citizens, residents, NAFTA
R - Relative or
T - Taxpayer lives with them WHOLE YR

Question 3

HIMDEAD - IRA Penalty Exemptions

Answer 3

H - Home ( used $10,000 to buy first home)
I - Insurance (Health Insurance Premiums, unemployed)
M - Medical expenses from Sch A
D - Dead
E - Education
A - Adoption, or birth of child
D - Death

Question 4

HIDEIT - Do not recognize Gains

Answer 4

H = Homeowner's Exclusions
I = Involuntary Conversion
D = Divorce Prop Settlement
E = Exchange (Like-Kind)
I = Installment Sale
T = Treasury Capital and Stock

Question 5

WRaP - Do not recognize Losses

Answer 5

W = Wash Sale Losses
R = Related Party Losses
and
P = Personal Losses

Question 6

HAAALCE - Personal Service Corporation Fields

Answer 6

H = Health (Mari)
A = Actuarial Science (Risk Assess - Casey Conrad)
A = Accounting (Jambrina)
A = Architecture (Howie)
L = Law (Rosas)
C = Consulting (BDO)
E = Engineering (Richi)

Question 7

TAPE - Order of Loss Limitations

Answer 7

T = Tax Basis
A = At-Risk Loss
P = Passive Activity Loss
E = Excess Business Loss

Question 8

LORA - Duties of Agent to Principal

Answer 8

L = Loyalty
O = Obedience
R = Reasonable Care
A = Account

Question 9

ALE - Elements of Enforceable Contract

Answer 9

A = Agreement made up on offer and acceptance.
L = Lack of Defenses
E = Exchange of Consideration

Question 10

DIFDDS - 6 events that would terminate an agency by operation of law

Answer 10

D = Death of principal or agent.
I = Incapacity of principal.
F = Failure to acquire a necessary license. 
D = Discharge in bankruptcy of the principal.
D = Destruction of the subject matter of the agency.
S = Subsequent illegality.

Question 11

RISE - Common law contracts

Answer 11

R = Real Estate
I = Insurance
S = Services
E = Employment

Question 12

PTINQ - Definite terms of a contract under common law?

Answer 12

P = Price.
T = Time of performance.
I = Identity of the person receiving the offer and the subject matter.
N = Nature of the work.
Q = Quantity.

Question 13

MAIDS - 5 Elements of Fraud

Answer 13

M = Misrepresentation of Material Fact 
A = Actual Reliance
I = Induce Reliance
D = Damages
S = Scienter

Question 14

FIDI - Void Defenses

Answer 14

F = Fraud in the Execution
I = Illegality
D = Duress (Physical)
I = Incompetency

Question 15

MYLEGS - Written contracts:

Answer 15

M = Marriage 
Y = Year (contracts over)
L = Land (Sale or lease)
E = Executors (Estate)
G = Goods (>$500)
S = Surety

Question 16

PCS - Conditions validly present in contracts

Answer 16

P = Precedent
C = Concurrent
S = Subequent

Question 17

SWAP - Exceptions to MYLEGS

Answer 17

S = Specially Manufactured Goods
W = Written Confirmation
A = Admitted in Court
P = Performed

Question 18

PANICTS - Adjustments to AMT

PANIC increases or decreases
TS only increases

Answer 18

P - PAL
A - Accelerated Depreciation 
N - NOL 
I - Installment income of a dealer
C - Contracts
T - Tax deductions - 
S - Standard Deduction

Question 19

3Ps - AMT preference items

Answer 19

P - Private activity bond interest income
P - Percentage Depletion deduction
P - Pre-1987 accelerated depreciation

3Ps always increase

Question 20

CPRS - Defenses of Surety (Do not have to pay the creditor).

Answer 20

C = Creditor acted in bad faith.
P = Paid debt or tender of performance.
R = Release of principal debtor. 
S = Surety is incapacitated/bankrupt.

Question 21

ESI - Surety Rights Against Debtor.

Answer 21

E = Exoneration.
S = Subrogation.
I = Indemnification.

Question 22

DEC - Surety Rights Against Debtor.

Answer 22

D = Defined 2> cosureties liable for the same obligation. 
E = Exoneration.
C = Contribution.

Question 23

FACTT - 5 methods of perfecting.

Answer 23

F = Filing (Financing Statement).
A = Automatic perfection (PMSI for consumer goods, upon attachment).
C = Control (investment property).
T = Taking posession of the collaterial (pawn shop).
T = Temporary perfection.

Question 24

DIII - Property of the bankrupcty estate that can be taken from me within 180 days that I file for bankruptcy.

Answer 24

D = Divorce settlement.
I = Inheritance.
I = Insurance. 
I = Income generated from estate property.

Question 25

WAFTED - Debts that survive bankruptcy under Ch 7 and Ch 11.

Answer 25

W = Willful and malicious injury (DWI).
A = Alimony.
F = Fraud, fines and penalties.
T = Taxes. 
E = EStudent loans.
D = Debts undisclosed.

Question 26

SAG WEG CTI - 9 types of priority claimants under Ch 7, and the order in which they get paid.

Answer 26

S = Support obligations.
A = Admin fees. 
G = GAP.
W = Wages owed.
E = Employee benefits owed.
G = Grain farmers.
C = Consumer deposits.
T = Tax claims. 
I = Injury for DWI.

Question 27

DAMS - Corporation Fundamental Changes

Answer 27

D = Dissolution.
A = Amendments to the articles of incorp.
M = Mergers.
S = Sale.

Question 28

MINTA - Preferential payments

Answer 28

M = More
I = Insolvent 
N = 90 days
T = Transfer
A = Antecedents

Question 29

GRA - 3 elements of Attachment

Answer 29

G = Give value
R = Rights in collateral
A = Agreement