SIMS

Question 1

Take_________________ for holding period even if the Stock dividends were issued later

Answer 1

original acquisition date

Question 2

MACRS lowest rate ________

Answer 2

use for 179 deduction

Question 3

1. FMV < basis - GIFT(EXCEPTION), selling at a loss
2. ANother exception
   if FMV >Cost basis , then take rollover basis even if it’s in the middle

Answer 3

Basis - FMV if selling at a loss
and holding period will be - USE DATE OF GIFT

Question 4

Bonus depreciation is not allowed for _________

Answer 4

Inheritance, gift, purchase from related parties, Assets converted from personal to business use is not eligible for bonus depreciation.

Labor cost-self is not included in the basis.

Question 5

To calculate At risk ______

Answer 5

exclude non recourse ending balance

Question 6

OAA = Tax exempt interest and Inv expense on tax exempt interest

Question 7

S Corp - pass through losses can reduce LOAN basis but distributions do not

Answer 7

Beg AAA (add or subtract separately stated items)
+ Ord INCOME
+DIV
+ CAP GAIN
- CHARITABLE DEDUCTION
_________________-
ENDING BALANCE

Question 8

C corp, Foreign corp holding

Answer 8

Zero DRD