REG Mnemonics Flashcards
For AGI - I EMBRACED EHA
(I)nterest on student loans ($2500)
Self (E)ployment tax (50% deductible, 100% medical premiums deductible
(M)oving Expenses (must be 50 miles from old home & doesn’t include meals, house hunting, or temporary living expenses
(B)usiness Expenses (Sch C 1099)
(R)ental, Royalty, and Flow Through Entities
(A)limony paid
(C)ontributions to Retirement Plan
(E)arly Withdrawal Penalty
Jury (D)uty fee if remitted to employer
Qualified Higher (E)ducation Expense (up to $4000) Contributions to (H)ealth Savings Account (HSA)
Itemized Deductions “From AGI” Schedule A
COMMITT
(C)haritable Contributions
(O)ther Miscellaneous Expenses
(M)iscellaneous Expenses (BIT)
(B)usiness expenses of an employee
(I)nvestment expenses
(T)ax prep and attorney fees
(M)edical Expenses (paid and not reimbursed)
(I)nterest Paid
(T)axes Paid
(T)heft and Casualty LossesQualifying Child (JARRS)
(J)oint return (no) (A)ge (R)esidency (R)elationship (S)upport tests
Qualifying Relative (C IRS Jack you)
(C)itizen or Resident (US citizen or resident of US, Mexico or Canada)
(I)ncome (limited to personal exemption)
(R)elationship or unrelated and a household member for entire year
(S)upport (over 50% of total annual support)
No (J)oint return with spouse
AMTI Adjustments (SIMPLE PIE)
(S)tandard deduction can’t be claimed
(I)nterest on home equity loans not deducted unless to buy, build or improve main home.
(M)edical expenses under 10% of AGI can’t reduce AMT
(P)ersonal and dependent exemptions are not allowed
(L)ocal and state income taxes, all property taxes and sales taxes are not deductible
(E)mployee business expenses, tax preparation and investment expenses subject to the 2% (BIT) threshold are not deductible
Tax Preferences (PIE)
(P)rivate activity bond interest is fully taxable
(I)ncentive stock options are taxed when exercised for the difference between the exercise price and market price of the stock
(E)xcess depreciation on personal property over 150% declining balance when double declining balance was used for regular tax purposes
Individual AMT Adjustments (SIMPLE-PIE)
Adjustments
(S)tandard deduction can’t be claimed
(I)nterest on home equity loans not deducted, unless to buy, build or improve main home
(M)edical expenses under 10% AGI. Calculate diff between 7.5% and 10%
(P)ersonal and dependent exemptions not allowed
(L)ocal and state income taxes, all property taxes and sales taxes are not deductible
(E)mployee business expenses, tax prep and investment expenses subject to 2%
Tax Preferences (PIE)
(P)rivate activity bond interest is fully taxable
(I)ncentive stock options are taxed when exercised for difference between exercise price and market price
(E)xcess depreciation on personal property over 150% when DDB was used
Corporate AMT Adjustments and Preferences (PILE)
(P)rivate activity bonds
Difference between accrual accounting and the installment method for (I)nstallment sales on inventory
(L)ong term contract income must be calculated using the percentage of completion method
(E)xcess depreciation on personal property over 150% when DDB was used
Corporate AMT ACE Adjustments (SLIM)
(S)eventy percent DRD
(L)(I)fe insurance proceeds on key employees
(M)unicipal bond interest from all such bonds (except private activity bonds already included in AMTI before the ACE adjustment)
Common Law Liability (MILE)
(M)aterial misstatement or omission
(I)nfo in the F/S caused harm to the plaintiff
(L)oss
(E)rror caused by breach (non-performance)
1933 Act only have to prove M and L
Securities and Exchange Act of 1934 (RIMS)
Plaintiff must prove MILE and
(R)eliance
(I)ntent to deceive
(M)aterial misstatement
(S)uffered loss
Exempt Securities of 1933 Act (ACID-BRAINS)
Regulation (A) (C)ommercial paper (I)ntrastate offerings Regulation (D) (504, 505, 506) (B)rokerage transactions (R)egulated industries (savings and loans) (A)gencies of the gov't (railroads, municipal bonds) (I)nsurance contracts/policies (N)ot for profit (charity/church) (S)tock dividends and splits
Statute of Frauds (GROSS)
Sale of (G)oods over $500
(R)eal estate sales
(O)ver one year required to perform contract
(S)uretyship
(S)tatements in consideration of marriage
Additional exceptions for contracts involving sale of goods (SPAM)
(S)pecifically manufactured goods can be enforced by the seller
(P)artially performed contracts to the extent of performance
Defendent (A)dmits in court to making the contract
If a written confirmation of a contract is sent to a merchant, the confirmation can be used against the merchant if the (M)erchant does not object within 10 days
Firm Offer (SUM)
All three must apply
(S)igned
(U)p to 3 months is enforceable
(M)erchant
Unanimous Consent Required From General Partners (AGAST)
(A)dmitting a new partner
(G)uaranteeing the debts of a third party (surety)
(A)dmitting or submitting a legal claim in court
(S)ale or pledge of partnership property
(T)hird parties are notified of a limit to a partner’s actual authority
Real Defenses (FABLE)
(F)orgery (A)lteration (B)ankruptcy discharge (L)ack of capacity (E)xecution of fraud or extreme duress
Personal Defenses (BUILD)
(B)reach of contract (U)nauthorized completion (I)nducement of fraud (L)ack of consideration (D)uress
Attachment of a Security Interest (PIG)
All three must occur
(P)roperty owned by the debtor
(I)nterest is created (one of two ways)
1) signed security agreement
2) take possession
(G)ive value to the debtor
Perfection (FAT)
Must satisfy any one
(F)ile a financing statement
(A)utomatic perfection
(T)ake possession
Priority Claims in Bankruptcy (STOP-IT Drunk Driver)
(S)upport and alimony payments
(T)rustee, attorney, accountant and admin expenses
(O)wned after petition date in involuntary gap between filing and approval date
(P)ayroll (90 days) and employee benefit plans (180 days)
(I)ndividual consumer deposits up to $2775 each
(T)ax claims within 3 years of petition
(D)runk driver injury claims
Exceptions of Denial of Bankruptcy Discharge (A CC SLUT)
(A)limony or child support
(C)redit card purchases of luxury goods over $650 within 90 days of filing
(S)tudent loans
(L)oans obtained by fraud
(U)nlisted debt that wasn’t disclosed on petition to the court
(T)ax claims within 3 years of filing petition
