Reg - Additional

Front 1

when is a casualty loss NOT allowed

Back 1

when controllable and avoidable - dog breaks vase

Front 2

are union dues deductible

Back 2

YES - misc 2% floor

Front 3

is estate tax on income in respect to decedent deductible

Back 3

YES - fully itemzed

Front 4

what residence are the following deductible on 1, 2, all
interest
taxes
utilities
insurance

Back 4

interest - 1 and 2
taxes - all
utilities - NONE
insurance - NONE

Front 5

when is federal income tax refund taxable

Back 5

NEVER

Front 6

C - Corps capital carryback/forward is always treated as ST/LT

Back 6

back - ST
forward - ST

Front 7

cna I use 179 on assets purchased from related party

Back 7

NO

Front 8

how does assuming mortgage effect C-Corps basis in property contributed by someone

Back 8

It's doesn't unless mortgage bigger than basis

c-corp takes bigger of: old basis + gain of person (if any) OR mortgage assumed

Front 9

when do dividends have to be paid from c-corp to bring down accumulated earnings

Back 9

March 15

Front 10

are personal holding corps liable for accumulated earnings tax

Back 10

NO

Front 11

I contribute property to C, p-ship - my basis - their basis

Back 11

C corp
my basis = NBV minus mortgage relief
corps = greater of: NBV + gain person recognizes (if any) OR mortgage assumed
P-ship
my basis = NBV minus mortgage relief (% assumed by others)
p-ship = always NBV + gain person recognizes (if any)

Front 12

when dealing with peferred stock and common stock and c-corp doesn't have enough in accum E&P - who get paid first

Back 12

preferred - some of common will be return of capital

Front 13

when is a security deposit included/not included in rental income

Back 13

included - NOT seperated (available to be applied to last month)
NOT included - seperated and NOT available to be applied to last month

Front 14

are the following subject to S/E tax
guaranteed payments
s-corp income

Back 14

guaranteed payments - YES
s-corp income - NO

Front 15

can interest income in p-ship be offset by passive NOL

Back 15

NO - interest income is portfolio income

Front 16

for individual buying bonds @ premium - what do you do with premium amort

Back 16

can be used to DIRECTLY offset interest income

Front 17

involuntary conversion - is cleanup/removal added to basis to arrive at total basis lost (then vs change in FMV)

Back 17

YES

Front 18

does title insurance increase basis in land

Back 18

YES

Front 19

interest expense on HELOC to be used in business (sole prop) - where reported

Back 19

Sch C

Front 20

is state disability taxable income

Back 20

NO

Front 21

what is the amount of contribution for property held more/less than 1 year

Back 21

held 1+ years = FMV
held less than year = basis

Front 22

do the following have AGI phase-outs
charitable contributions
medical costs
nonbusiness casualty losses
investment interest deductions

Back 22

charitable contributions - YES
medical costs - NO
nonbusiness casualty losses - NO
investment interest deductions - NO

Front 23

what is limitation on itemzied deductions

Back 23

Lessor of:
3% excess of AGI over amount
OR
80% of certain itemized deductions

Front 24

terminoligy
congenital
ad valorem

Back 24

congenital - necessary - ok for medical itemized deduction
ad valorem - property tax on auto - OK for itemized deduction

Front 25

are charitable deductions allowed under AMT

Back 25

YES

Front 26

how close do we have to be on taxes (personal/corp) to avoid penalty

Back 26

persoanl - within 1,000
corporate - within 500

Front 27

can an s-corp who owns 100% of c-corp file consolidated return

Back 27

NO - s-corps, foreign corps, REITs, some insurance companies and exempt orgs canNOT consolidate

Front 28

what are the 4 groups who MUST use accrual accounts

Back 28

TIFF TIFF - no cash
Tax Shelters
Inventory - purchase/sell
Farming corps
Five million (c-corps, trusts, p-ships with c-corp partners that have 5MM in revenue over 3 years)

Front 29

gift tax return date

Back 29

April 15

Front 30

standard deduction/exemption for estate and trust

Back 30

std deduction - 0
exemption - simple (300) complex (100)

Front 31

if a c-corp distributes land (assuming E&P ok) with debt, what is my basis/income
FMV 50
debt 5

Back 31

Income 45
Basis 50

Front 32

contributing to and getting property in/out of c-corp - my basis/corp basis
into - mine and theirs
out of - my basis/income

Back 32

into -
my basis = NBV - debt relief
c-corp = greater of: NBV + my gain (if any) OR mortgage assumed

out of:
my basis - ALWAYS FMV
my income - FMV - debt assumed

Front 33

does REITs income qualify for DRD

Back 33

NO

Front 34

basis in p-ship - what does debt do to one w/debt, one assuming

Back 34

w/debt - NBV - % debt others take
others - NBV + % assumed

Front 35

what amount of unemployment comp is taxable

Back 35

over $2,400

Front 36

If a child makes more than $3,650 – in what cases can the parent still claim him as a dependent?

Back 36

Under 19
OR
Under 24 – full-time student
no age limit for disabled

Front 37

2% floor items

Back 37

Tax prep or other job required expenses
Amort left at death on cost of annuity
Investment exp OTHER THAN INTEREST

Front 38

are the following subject to 2% floor
gambling losses
investment interest exp

Back 38

gambling losses - NO
investment interest exp - NO

Front 39

Carryback/forward
Sch C
NOL
Individual Cap Losses
Corp Cap Losses
Passive losses
C corp charitable contributions
Ind charitable contributions
Corp AMT
Ind AMT
Foriegn

Back 39

Sch C – 2/20
NOL – 2/20
Individual Cap Losses – 0/forever
Corp Cap Losses – offset only cap gains – 3/5
Passive losses – 0/forever or until we sell property – can also offset PAG
C corp charitable contributions 0/5
ind charitable contributions - 0/5 (FIFO)
Corp AMT – 0/forever
Ind AMT - 0/forever
Foriegn - 1/10

Front 40

Casualty losses – do the rules apply for total (if multiple losses) or each individual
100/500 floor
10% AGI

Back 40

100/500 floor – each individual
10% AGI – total losses combined

Front 41

What income is included if employer offers cash option instead of nontaxable benefits

Back 41

GR – all amounts (values) are taxable regardless of decision if there is an option
EXCEPTION – under a cafeteria plan, only cash received is taxable

Front 42

Are burial expenses tax deductible

Back 42

No

Front 43

Adjustments to arrive at AGI

Back 43

HELP MISS T SAID
Health Savings Account
Educator Expenses
Loan (student) interest
Performing artists/reservists/fee based gov’t employees

Moving expenses
Insurance ½ self employed health
SE tax ½
Simple plans

Tuition and fees

Saving account penalties
Alimony
IRA
Domestic producers

Front 44

Non-business bad debt – long-term or short-term

Back 44

ALWAYS short-term

Front 45

Capital gains/losses – individual – how to handle if 4 numbers (LT gain/loss ST gain loss)

Back 45

Net LT
Net ST
Whichever is bigger dictates ST or LT
Net Both “NETs” – life loss, $3M limit

Front 46

Can S corps take DRD

Back 46

NO

Front 47

Are the following itemizeable –
Contact lenses
disability insurance to pay if we can’t work

Back 47

Contact lenses – YES
disability insurance to pay if we can’t work – NO (to replace income)

Front 48

who does the worthless stock (small corps) benefit apply to

Back 48

ONLY original owners - NOT sons

Front 49

Common VS UCC
Mirror acceptance
conforming/non goods
terms
statute of frauds
modification to contract
partial performance
who can sue for damages

Back 49

Mirror acceptance - (CL) YES (UCC) NO - unless major
conforming/non goods - (CL) can only sue for damages if minor (UCC) perfect tender)
terms - (CL) ALL (UCC) only quantity (unless buy all)
statute of frauds - (CL) 4-6 (UCC) 4
modification to contract - (CL) consideration MUST be given (UCC) OK if in good faith
partial performance - (CL) can't canel is substantially performed (just sue) (UCC) cancel (perfect tender)
who can sue for damages - (CL) privity (UCC) anyone expected to use product