Deck 30 Flashcards Preview

Regulation > Deck 30 > Flashcards

Flashcards in Deck 30 Deck (22):
1

Priority disputes between secured party and buyer of consumer goods from consumer goods:

Buyer of consumer goods from consumer prevails only if the secured party doesn't file a financing statement

2

20-day grace period for a PMSI only works for:

Inventory

3

Interest on auto loans is:

Not deductible

4

Deduction for personal residence interest is an:

Itemized deduction

5

For a personal residence that is not used for rental purposes, no deduction is allowed for:

Utilities and insurance

6

Max section 1244 loss that can be deducted is:

$50,000

7

The at-risk limitation provisions may limit:

A partner's deduction for his or her distributive share of partnership losses

8

What is the first step when figuring out gain/loss for a stock split?

Figure out the amount of the original purchase (original basis)

9

2:1 Stock split

Number of shares double

10

3:2 stock split

Multiply the shares by 3, then divide by 2

11

Basis for a tax-reorganization

Basis of the stock that the taxpayer surrendered (Surrendered 4000 shares, $4000 basis)

12

Section 1245 property examples

Equipment and office furniture (not building)

13

Separately stated income for partnership includes:

Dividends received, long-term capital gains (taxable to partners), and investment interest expense (deductible by partners)

14

A reorganization under Ch. 11 bankruptcy does not include:

Liquidation

15

When chapters of bankruptcy is a trustee required?

Chapter 7 and chapter 13 (not ch. 11)

16

Chapter 7 bankruptcy

Liquidation; trustee appointed; individual, partnership, corp.

17

Chapter 13 Bankruptcy

Adjustment of debts; individuals only; no liquidation

18

Chapter 11 bankruptcy

Reorganization; individuals, partnerships, corp.; trustee not required; no liquidation

19

Exception to who may be a debtor (RIBS):

Railroads; Insurance companies; banks, brokers; savings, stockbroker

20

Means test calculation

(Average monthly income - allowed expenses) x 60

21

When is chapter 7 not permitted for an individual consumer debtor?

average current monthly income (6 months) > state median income; and the means test amount is greater than $12,475

22

Chapter 7 bankruptcy is permitted for an individual consumer debtor when...

Average current monthly income (6 months)