Deck 10 Flashcards Preview

Regulation > Deck 10 > Flashcards

Flashcards in Deck 10 Deck (20)
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1
Q

Are Roth IRA contributions deductible?

A

Not deductible

2
Q

Medical insurance premiums qualify as:

A

Deductions from AGI

3
Q

Sales taxes and interest expense are examples of:

A

Deductions from AGI

4
Q

Examples of contributions that are not charitable?

A

Contributions for political campaigns

5
Q

Casualty and theft loss:

A

Loss starts at the lesser of decrease in FMV or adjusted basis

6
Q

A corporation’s capital loss carryback or carryover is always treated as:

A

A short term capital loss

7
Q

Losses resulting from the sale, exchange or worthlessness of Section 1244 qualifying stock are treated as:

A

Ordinary losses up to $50,000 in any tax year; only available to original owners of the stock

8
Q

What amount of distributions is classified as dividend income to shareholders?

A

Accumulated E&P and Current E%P

9
Q

Net capital losses:

A

Carried back 3 and forward 5

10
Q

Net operating losses::

A

Carried back 20 years and forward 2

11
Q

Limit for charitable contributions for a C corporation

A

10% of its taxable income after adding back the dividends received deduction

12
Q

Dividends Received Deduction (DRD) =

A

70% of dividends received; limited to 70% of DRD modified taxable income

13
Q

If the prior omission was nonfraudulent, the statute of limitations…

A

Cannot be reopened after it has expired

14
Q

Tax-free (Type B) reorganization:

A

The acquisition of a controlling (usually 80%) interest by one corporation in the stock of another corporation solely for stock

15
Q

The costs of organizing the corporation:

A

Are expensable (subject to the $5,000 limitation) and amortizable; the costs of selling stock are not

16
Q

A significant advantage of consolidate tax returns is:

A

The ability to offset gains and losses among group members as if they were a single taxpayer.

17
Q

The statute of limitations on a corporations tax return begins on what date?

A

March 16

18
Q

Taxable dividend income is paid out of the corporation’s:

A

Current and accumulated earnings and profits; if there is a deficit, only current E&P are available

19
Q

Filing fees, professional fees, and other expenditures incurred in connection with a liquidation and dissolution are:

A

Deductible in full by the dissolved corporation

20
Q

Organizational costs are amortized over a minimum period of:

A

15 years (180 months); a $5000 deduction is allowed in year 1