Taxation Flashcards
1
Q
lease payment for LLC
A
taxed ORDINARY INCOME to partners
2
Q
buy sell death benefit
A
TAX FREE to business
3
Q
loan from life insurance cash value
A
NO INCOME TAX at time of loan
4
Q
spousal support
A
contributor = DEDUCTION
receiver = TAXED
*until 1/1/19
5
Q
child support
A
contributor = TAXED receiver = NOT TAXED
6
Q
divorce rental property
A
original and new basis taxed as ORDINARY INCOME
7
Q
1041
A
property transfer NOT taxed
8
Q
interest on installment note
A
DEDUCTIBLE from buyer income
payments pass to estate @ death
9
Q
3.8%
A
= net investment income
10
Q
S corp losses
A
DEDUCTIBLE to stockholder
11
Q
buy/sell life insurance premium
A
NOT deductible
