Round 2 Random MCQ Flashcards
For related party transactions do you recognize gain or loss? When do you?
No, and only when it is sold to an unrelated party
Is taxable distribution synonymous with partner gain from distribution? If yes, how is it calculated?
Yes, it is. The taxable amount is any distribution in excess of the basis.
Partner gain recognized from the selling of partnership interest would be = the amount realized - partners basis. How is realized calculated?
Cash recivede + (liabilities releases x %)
The cash distribution will affect a partner’s basis but not their income? T/F
T
Amount of income recognized under the installment method calculation:
SP - basis = GP
GP/ SP = GP %
amount recived that is asked in the question x GP%
Does a general partnership need to file papers in the creation of its business?
No GP does not need to file papers during incoorporation
Do creditors have the right to take possesion of collateral without judicial process?
Yes
Private letter rulings are about specific rules? T/F
T
Do partners assume liability on loans taken out by the partnership? Do partners assume liabilities from partners obtaining partnership %?
No
Yes
Under what age does a dependent child have to be to be covered by kiddie tax? and what tyoe of income is covered by kiddie tax?
24 unearned income (ex: gifted CD)
A partner can only deduct their amount of loss only to the extent of their at risk amount. T/F
T
If a charitable contribution wouldve been a LT gain if sold you should use the FMV. T/F. If it wouldnt have been a LT gain you would use the basis of the contribution. T/F.
T
T
A 1231 gain can only happen if you sell an asset that has been held for more than __ months and the asset comprised of personal/real property used in business
12
If statute of frauds do not apply, contract terms are enforcable. T/F
T
In consolidated income is capital gain included?
Yes, it is
For calculating M-1 is corporate bond interest income ignored?
Yes
Are AMT tax preference items ordinary or extraordinary items?
extraordinary
Is tax exempt income included in AGI?
No
If you inherent a gift what is the basis? What if FMV is lower than roll over basis?
Usually you would roll over the basis from the donor, if FMV is less than the basis then the basis is FMV
Can you deduct loss from a partnership? How much loss & how is it calculated?
A partner can deduct loss up to the amount of their basis calculation (excluding the loss)
If no partnership agreement exists how will the profits be distributed amoungst the partners?
equally
Are misc items and charity amounts deducted from AGI? Ar they above the line or below the line?
No because theyq are below the line deductions
If a partner contributes property for -80% interest what does the partnership use as basis in that item? If a partner contributes property for +80% interest what does the partnership use as basis in that item?
-80% = FMV \+80% = Basis
Qualified business deduction is ___% of income
20%
bond premium amortization can be used to offset ___ and computed under ___ ___ ___ ___.
income
constant yeild maturity method
The maximum amount of passive loss that you can deduct from income is $__K. If your AGI is about ___K you cannot deduct any amount
25K
150K
When calculating the income for charitble contribution limitation make sure to ignore ___
DRD
Change in _____, new/leaving ___ & ____, bankruptcy, credit ____, or a sale of assets not in the ordinary course of business must be reported to the SEC.
auditors
C suite & directors
defaults
A company is not liable for employees torts if they were committed outside of the scope of the company. Give an example:
The company wouldnt be liable for an employees fuck ups if company didnt want employee to use a gun but the employee did anyway
All ____ expenses need to be paid in order to have a bankruptcy reorginization.
admin
A corporations basis for a preperty rec would be the carry over _____ and the amount of ____ corporation contributes to the SH
basis
cash
statute of limitations generally commences on the date of _____
breach
If error on tax return is less than 25% (or simple mistake) IRS has _ years to investigate, if there is an error more than 50% IRS has _ years to investigate
3
6
Lifetime taxable gifts and transfers at death or taxed on a ____ basis
cumulative
even if a seller ships non-conforming goods its still counted as an acceptance of the offer. T/F
T
Refunds (are/are not) part of gross income. Pension distribution (are/are not) part of gross income.
are not
are
When calculating DRD you should use the income before ____ ___ ___ if availible
Dividend recieved deduction
Contributions are maxed out at 6K. However if youre __+ years old the contributions are allowed to be 7K
50
179 deduction maximum is
$1,040,000
A financing statement needs: Description of the types of _______. Name and address of the ______. Name and address of the _______.
collateral
debtor
creditor
A federal tax return must be filed for estates above $___M
11.5
