Deck 36 Flashcards Preview

Regulation > Deck 36 > Flashcards

Flashcards in Deck 36 Deck (25):
1

Purpose of an operating agreement for an LLC?

Designed to forestall and resolve disputes among the owners

2

LLCs are taxed as what kind of entity?

Partnership

3

Unemployment tax payable under FUTA is:

Tax deductible employer's expense

4

Apparent authority of a partner to bind a partnership in dealing with third parties will be:

Effectively limited by a formal resolution of the partners of which third parties are aware

5

Articles of incorporation must include:

Name and address of registered agent, name of corporation, name and address of incorporators, and number of shares authorized

6

When a bank accepts a check, all previous parties on the check are:

Discharged from liability

7

Debt holders do not have what in a corporation?

Ownership interest (common shareholders do)

8

Example of a non-fundable credit:

Retirement savings contribution credit

9

A reorganization is tax-free to:

All corporations and shareholders

10

What kind of losses are not deductible?

personal losses

11

A revocation is only effective when it is:

Received

12

Firm offer only applies to the sale of:

Goods

13

A taxpayer may file a claim for refund the later of:

3 years from the original due date or 2 years from the date the tax was paid

14

What amount of ordinary income should a partner report on his current year income tax return from the sale of his partnership interest?

1/3 of unrealized receivables

15

Gain recognized when buying shares with CASH for stock?

No gain

16

Student loan interest is what kind of deduction?

Deduction for AGI

17

What kind of deduction is used for mortgage interest?

Itemized deduction

18

A contribution is deductible for an accrual basis corporation if it meets two rules:

1) It was authorized before the end of the year; and 2) It was paid by the 15th day of the 3rd month after the end of the taxable year

19

There is no gain or loss recognized when a partner contributes property to a partner in exchange for:

A partnership interest

20

How does paying boot effect the basis?

Increases the basis

21

Examples of separately stated items:

Charitable contributions, dividend income, and net short-term capital losses

22

Example of an item that is not allowed as itemized deduction for AMT purposes:

Miscellaneous itemized deductions

23

Contributions of short-term property are generally deductible at the lower of:

Cost or FMV

24

Non-seperatly stated items is synonymous with the term:

Ordinary income (ordinary business revenue and expenses)

25

To qualify for the section 179 expense, the property must be both:

Tangible property to be used in the trade or business and be unrelated