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49 Cards in this Set
- Front
- Back
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when are tenant improvements included in income
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ONLY if they are in lieu of rent
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is foster pay included in income
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ONLY if it is above cost (pay - cost = to income)
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who do uniform capitalization rules apply to
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mfg
AND retail/wholesale with $10MM in revenues |
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personal NOL - are exemptions allowed
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NO - can't use to calc NOL
std and itemized deductions can only be used to offset other nonbusiness income (dividends and interest) - what typically happens is the NOL is just the business loss as the nonbusiness income is offset by std and itemized wages, rent income are business - std can't offset |
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who do passive activity loss limits apply to
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people
estates trusts CLOSELY held c corps personal service corps |
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what is the limit (income) on 179
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limited to net income before 179
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what is the limit on organizational costs
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$5M, but must be reduced by amount OVER $50M
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does NOL reduce net income when calcing for charitable deductions
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NO
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if partner has 12/31 YE but p-ship has 6/30 - how is income reported on return for 2008
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6/30/08 p-ship income reported on 12/31/08 return
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do guaranteed pmts increase basis in p-ship
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NO - they are income
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what's the only time a partner should recognize loss on complete liquidation
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if our basis is more than:
cash received OR inventory/A/R received |
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are the following taxable
personal reputation award punative damages award |
personal reputation award - YES
punative damages award - YES |
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who is a CPA liable to under ultra mares case
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GR - liable to client and 3rd parties the CPA KNOWS will rely on opinion (banks, etc.)
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how long to amortize
10-year patent 5-year noncompete |
ALL intagibles are 180 months regardless
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what's the rule w/ itemized medical and dependency
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ignore income (sUport)
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does DNI include tax exempt income
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YES
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like kind exhange for loss but boot is received - how to calc basis
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basis is reduced by boot received
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are retainer fees included in income
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YES- much like rent
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bankruptcy - within what timeframe is perfection considered a voidable preference (can be revoked by court)
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if perfected within 90 days of filing
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4 elements of negligence
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duty
duty breached causation injury (damages) |
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co-insurance 80%
FMV 500 Insured amount 300 Loss 40 |
300/(500x80%) x 40 = 30
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are punitive damages allowed under 10b-5
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No - but are allowed under fraud in common law
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does gross negligence qualify for 10b-5
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Yes - fraud or gross negligence
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exempt from 1933
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Not PIG SR
Non-profit Paper (commercial under 9 months) Insurance Policies (but stocks/bonds are NOT exempt) Gov't Savings and Loans (securities and CDs) Railroads |
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are insurance stocks/bonds exempt from 1933
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NO - just policies
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3 goods that require uniform capitalization rules
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all DM + DL + FOR
real/tangible property for: use sale resale if sales over 10MM |
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c-corp - is interest expense on muni portfolio deductible
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NO
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if I contribute land with basis of 40M to corp and get 20M back - my basis, corps basis
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My - 40M Their basis - 60M |
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if s election made after march 15 - when is S effective
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1/1/next year
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when does a corp have to pay charitable deduction by
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march 15
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to qualify for DRD - how long do we have to hold stock
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45 days
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in a liquidating distribution for p-ship when not enough basis and distributing cash, inv/land, which first
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work down BS
cash then inv then land |
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where is income with respect to decedent reported
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estate tax return or tax return of heir
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when is the only time reliance is needed for negligence
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GR - not needed
if CPA knows 3rd party RELIANCE, can be liable for negligence |
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under 1933 - what insurance is and isn't exempt
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insurance policies ARE EXEMPT
NOT stock/bonds |
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why can't free loading friend get us head of household
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NOT relative - doesn't count
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do foster kinds/cousins get us:
head of household exemption |
head of household - NO
exemption - YES but only if they live with the taxpayer ALL year under suporT (fosters must also be court appointed) |
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what 2 things are considered "boot"
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cash
COD |
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what is inter-vivos
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plain gift
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is disability taxable
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NO
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Section 11 - 1933
what must be shown: who is liable: is privity required: what's the best defense: |
what must be shown:
acquired stock; material misrep/omission of fact; suffered loss who is liable: anyone who signs is privity required: NO what's the best defense: due diligence |
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section 10b-5 1934
what must be shown: what's the best defense: does negligence count: |
what must be shown: MAIDS
what's the best defense: lack of scienter does negligence count: no BUT gross negligence does |
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is an interest in a p-ship a capital asset
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YES
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time to claim refund after missing deduction
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LATER of 3 years from DUE DATE OR 2 year from when tax paid
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how can exemptions be met (2)
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either CARES OR SUPORT - ie - daughter who is 20 but doesn't make any money (basically free loading friend)
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are fees attributable to corpus deducted to arrive at DNI
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NO - neither is capital gains attributable to corpus
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if we sell an asset being depr on MACRS - how much depr do we get
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1/2 of normal calc regardless when we sell
ie - 2nd year 10,000 x .2250 x .5 |
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what do we have to be careful of when looking at 179
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make sure NO LOSS - can only take up to income - carry rest
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is real property used in business 1231
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YES - both personal AND REAL property
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