REG R5 Flashcards
Are personal capital losses allowed on business returns?
No- zero deductibility
Requirements of Fraud: MAIDS
Applies to Securities act of 1934
M: Material Misstatement A: Actual Reliance I: Induced to buy/sell D: Damages S: Scienter
Requirements of antifraud section of the 1933 act
LAM
L: Loss
A: Acquired Stock
M: Material Misstatement
Requirements of 1934 continuous monitoring
Traded on a national exchange
Has at least 500 unaccredited shareholders/2000 total
Over 10MM in assets
Rule 504 of Reg D
5MM in 12 mo
Rule 506 of Reg D
Unlimited amount in 12 mo
“Private Sale”
to Accredited investors - no prospectus required
Max 35 unaccredited sophisticated investors
No general solicitations
Right to resell restricted to 2 years
Quarterly reports of the 1934 act
Plus, extra items that need to be reported - 5% TIP
8-K Material events that occurred
10-Q Quarterly Report
10-K Annual Report
Additional information: 5% TIP
5%: Ownership with 5% or more
T: Tender Offers of 5% or more
I: Insiders w/ more than 10%
P: Proxy Statements
Exemption for Registration under the 1933 Act
BRINGS Banks Railroads Insurance Policies Non Profit Organizations Governmental Units Short term commercial paper due in 9 mo or less
How do you calculate the maximum amount deductible for a keogh plan?
Net income
- 1/2 of self employment tax
X 20%
Adjustments to arrive at AMTI
PANIC TIME
Passive activity losses Accelerated depreciation post 1986 NOL of individual Installment income Contracts - percentage completion value completed contract Tax deductions Interest deductions Miscellaneous deductions Exemptions - personal and standard
Calculation of recognized gain on exchange
FMV of new property
+boot received
- adj basis of property given
= gain REALized
Recognized = lesser of realized gain or boot
Basis is adj basis of old + recognized gain - boot
Corporate contribution limit rate
10% of net income
Individual contribution tax rates
50% limit on cash
30% limit on appreciated property
Tax period for deducting goodwill
15 years
What is the minimum income an estate must have to file a return?
$600
What requires a written contract under the statutes of frauds?
MYLEGS
Marriage as a result of a contract
Contracts that cannot be performed in a year
Contracts involving land
Contracts by executors to pay expenses out of personal funds
Contracts for sale of goods over $500
Contracts to act as surety
Difference between a unilateral contract and a bilateral contract
Unilateral - promise exchanged for act
Bilateral - two promises exchanged
Order of dissolution for general partnership
Partner loans
Capital accounts
Partner profits
What do shareholders have the right to approve?
Can vote on all fundamental corporate changes. Hiring of officers and declaring dividends are the responsibility of directors
What is subpart F income?
Taxable income included by a US taxpayer from a controlled foreign Corp, typically not economically connected to the country of origin
What is a capital asset?
Real and personal property held for investment or personal use
What is the minimum support percentage to qualify in a multiple support agreement?
Over 10% and over 50% collectively
How is income divided out between s Corp ownership when transferred during the year?
On a per share per day basis
Who qualifies as a related party in relation to losses from sales and exchanges?
Brothers and sisters, husband-wife, lineal descendants and entities need more than 50%
