Regu 2 Flashcards
State income tax refund
Taxable
Federal governmental obligations
Taxable
Tax consequences
Cash + fmv bond
Corporation casualty loss
Corporations do not have to reduce casualty losses by either a statutory floor or by 10% of AGI
Consolidated company (if parent 80%) do not report
Dividend income
Medical standard deduction
12,200
No recognition of gain
In order to qualify, a taxpayer has to acquiere qualified replacement property within 2 years after close of the 1st year.
Reorganization exchange
Nontaxable
Brankruptcy chapter 11 annual monetary incentives
Must be 10X average inducements offered to non-management employees and the inducement should be less than that
A taxpayer pays self employment tax on the earnings of the business if.
Net earnings of self-employment taxes are $400 or more
How to determine taxable gain each year?
- Calculate gross profit (sales price- cost basis)
- Calculate gross profit % = (gross profit)/ sales price
- Cash collection year 1 = down payment + installment payment
Taxable gain in year 1 = 5000 * .5
Add back in alternative minimum tax
- Standard deduction
- Real estate taxes paid
- State income taxes paid
Charitable contribution deduction on schedule A
- Do not qualify contribution to senador campaign
2. Contribution to foreign organization
Adoption credit
Up to $14,080
Gross estate in the federal tax return includes
All property own including personal items and jewerly as wel as the jointly held land
Separate stated partnership income includes
- Interest income from checking account
2. Charitable contribution
Securities act 1933
Investor is required only to prove the existence of a false statement or material omission
Securities exchange act 1934
should include reliance on the inaccurate statement. The plaintiff must show that losses were caused by the accountant fraud, neglicence or breach of contract.
Personal tax return deduction
The lesser of the basis or losses
The age discrimination in employment act
Prohibited compulsory retirement of employees below the age of 65
Voluntirlu filed requieres
The person must surrender inherited money within 180 days
