Flashcards in Business law Deck (10):
PREJUDGEMENT REMEDIES - COMMON LAW
CREATED TO STOP PEOPLE FROM HIDING THEIR PROPERTY WHEN THEY ARE INDEBT
LAST ONLY FROM WHEN THE LAWSUIT STARTS TILL THE JUDGEMENT
REPLEVIN - TAKE BACK YOUR STUFF YOU SOLD THEM
LIS PENDENS - LET SOMEONE KNOW THERE'S A LAWSUIT ON IT
LEASEHOLD IMPROVEMENTS INCOME OR NOT OR NOT
ONLY INCOME IF IN LIEU OF RENT
What do you need to remember if you see an S corp distribution Question that exceeds basis.
Basis + Additions + Ordinary Income - Distributions
4) Mr. and Mrs. Green filed a joint return. During the year, they provided more than 50 percent of the support for the following individuals, all of whom are U.S. citizens:
The Greens’ daughter, age 23, who was a full-time student for eight months. During the summer, she earned $4,600, which was spent on her support.
Mr. Green’s cousin, age 16, who lived with them from March through December.
Mr. Green’s widowed mother, age 70, who lived with them and had no income.
The Greens’ daughter, age 22, who lived with them for the full year. She had gross income of $4,100.
Mrs. Green’s widowed father, age 64, who lived alone. His sole source of income was $4,200 of Social Security.
How many exemptions may Mr. and Mrs. Green claim on their tax return?
To qualify for the dependency exemption, a taxpayer must provide more than 50 percent of the support to a U.S. citizen who meets certain relationship and residency tests stated in Section 152(a).
Based on the relationship tests and income limits, Mr. and Mrs. Green are entitled to one exemption for their 23-year-old daughter (because she is a full-time student under 24 years of age); Mr. Green’s widowed mother; and Mrs. Green’s father (because Social Security is not included in determining the gross income limit). They are also entitled to two personal exemptions (one each for themselves), for a grand total of five exemptions.
The cousin does not qualify under the relationship test because she was not a member of the household for the entire calendar year, and the 22-year-old daughter does not qualify because her income exceeds the exemption amount outlined in Section 151(c) of the Internal Revenue Code (see Publication 501).
When it comes to figure out if relative passes the support test, does social security count as suppot. How about wefare benefits.
Yes Both count as support.
Is rental real estate income a separately stated item?
I think yes not sure
Elections of a Partnership
Method of Account for Depletion or Installment Sales
Nonrecognition of gain on Involuntary Conversions
Amortization of Organization fees and business start up costs
Yes the partnership agreement is an amoritizable costs, but making a contract related to the operation of a partnership as a business (even if it's with one of the partners) is not
What else isn't: cost of admitting or removing a partner
Marketing interest in the partnership
Think of it as the difference between start-up stuff and actually cost of doing business
All section 197 intangibles are amoritized over a period of ____ years