REG16 Flashcards
If a taxpayer who died in was entitled to receive an accounting fee that had not been collected before the date of death and the executor of the estate collected in full, will it appear in the fiduciary income tax return and/or the estate tax return?
In both.
Income that a decedent had a right to receive prior to death but that was not includible on his or her final income tax return is income in respect of a decedent. The $10,000 is properly includible in the estate’s income tax return because if was a cash-basis taxpayer and would not properly include income not yet received at the time of death in his final return. Since the money was owed it is an asset of the estate and must be included on the estate tax return also.
If dividends are received from foreign corporations are they eligible for the dividends-received deduction?
No. Dividends received from foreign corporations are eligible for the dividends-received deduction only if the corporation is subject to U.S. income tax
Does ST Capital Gains decrease a NOL carryover?
Yes.
Does the transfer of stock to a resident alien disqualify a corporation from S corporation status?
No. But transferring its stock to a corporation would cause it to cease qualifying as an S corporation.
Are nonresident aliens, eligible for the standard deduction?
No, nonresident aliens are ineligible for the standard deduction.
Are Sec. 1231 losses treated as ordinary losses and netted against TI?
Yes.
Does a lien creditor have priority over unperfected security interests?
Yes, a lien creditor, an assignee for the benefit of creditors, a receiver in equity, or a trustee in bankruptcy all have priority. The lien creditor takes the property subject to any security interest perfected before the lien attached, but its rights are superior to any security interest perfected after the lien attached.
Does the debtor have an absolute responsibility to pay any deficiency remaining following disposition of collateral?
Yes, if proceeds are insufficient, the creditor may seek a deficiency judgment against a debtor for the balance owed
Can a security interest in investment property be perfected by control or by filing?
Yes, if the security is in registered form, control requires delivery and endorsement or delivery and registration. A secured party has control over a securities account if the secured party controls all security entitlements in the account.
When can a buyer recover goods from an insolvent seller?
If (1) the goods have been identified to the contract, (2) the seller became insolvent within 10 days of receipt of the first installment of the price, and (3) tender of any unpaid portion of the price is made and kept open.
How many days does a creditor have to perfect its interest?
Within 20 days
Which is the true classification of goods under UCC Article 9?
Consumer goods, equipment, farm products, inventory.
Is a lease governed by Article 9 if they will become the owner of the property for nominal consideration?
Yes, if the agreement states that, upon compliance with its terms, the lessee will become the owner of the property for nominal consideration, the lease is deemed to be one intended for security. The “lease” is therefore governed by Article 9.
Can the auctioneer withdrawal goods at any time before (s)he announces completion of the sale when goods are auctioned with reserve?
When goods are auctioned with reserve, the auctioneer may withdraw them at any time before (s)he announces completion of the sale. In an auction without reserve, the goods may not be withdrawn after the auctioneer calls for bids unless no bid is made.
Does a buyer of goods in the ordinary course of business have a superior interest in the same collateral if there is a prior perfected security interest?
Yes. A buyer in the ordinary course of business, other than a buyer of farm products from a farmer, takes the goods free of any security interest created by the seller. This right is extended to the buyer regardless of whether (1) the security interest is perfected or (2) the buyer knows of its existence.
