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12 Cards in this Set
- Front
- Back
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What is Section 1202 Qualified Small Business Stock
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Sec 1202 QSBS includes those corporations that had less than $50 million in aggregate gross assets at the timeits stock was issued . Investors may exclude from gross income 50% of gain. Except for 2009 and 2010 wherein 75%^ of gain mah be excluded
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Explain the tax advantages of SSBIC
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Specialized Small Business Investment Company SSBIC stock gain is may be postponed.
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How are corporate Bonds taxed
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The amount attributable to a market discount generally is not includable in income until disposition and then it is treated as interest income. Only gain in excess of the accrued market discount is treated as capital gain.
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What are the three methods of calculating basis for mutual funds
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1) specific identification; 2) cost method; 3) FIFO
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Sec 1202 stock sold during what period of time gets a 75% exclusion from income rather than a 50%
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After 2/17/2009 and b4 9/27/2010
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What is the CG rate for collectibles
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28%
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When is a rental property consider personal use
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If tp uses it the greateer of 14 days or 10% of time rented. Days of use are counted when used by family member, rented at less than fair rental price or donated to charitable organization.
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What is the minimal usage rule re rentals
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If tp rents for fewer than 15 days, income does not have to be recognized and rental expenses cannot be deducted
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How are royalties reported
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Line 17 of 1040 or on sche E, supplemental income and loss. If self employed must report on sch c A tp is required to issue 1099 misc to each person whom he has paid at least $10 in royalties.
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What is the basis for depreciation when tp converts personal use property to rental
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Lesser of basis or FMV on date of conversion
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How is it determine whether a rental is for profit or not for profit
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When income exceeds rental expenses for 3 out of 5 years
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Are refundble security deposits recognized as income in the year received
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no
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