ITX - 40 Flashcards Preview

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Flashcards in ITX - 40 Deck (12)
1

(40.4) ISOs ___ income, as well as reduces taxes to ___ rates.

- defer
- capital gain rates

2

(40.4) ISOs are not ordinary income to the employee when they are ___.

granted or exercised

3

(40.4) ISOs can only be owned by shareholders with less than ___% stock ownership

10%

4

(40.4) ISOs: The owner of the options must be employed by the grantor corporation until at least __ months before the option is exercised.

3

5

(40.4) ISOs: Once the shares have been purchased with the options, or the options have been exercised, they must be held for more than __ year from the date of exercise and at least __ years from the date the options were granted, before being sold, in order to be taxed entirely as long-term capital.

- 1 year (one year plus one day)
- 2 years

6

(40.4) ISOs: Once the shares have been purchased with the options, or the options have been exercised, they must be held for more than 1 year (one year plus one day) from the ___ and at least 2 years from the date the ___, before being sold, in order to be taxed entirely as long-term capital.

- date of exercise
- options were granted

7

(40.6) The maximum amount of Section 179 depreciation is $___; it is reduced by the amount of assets purchased above $___.

- $25,000
- $200,000

8

(40.6) Large acquisitions that are not structural components of the building can be depreciated over __ years using accelerated-recovery methods, rather than __ years using straight-line depreciation for residential or commercial buildings.

- 15 & 7
- 27.5 & 39

9

(40.6) For most tangible personal property, a __-year of depreciation is allowed in the year of acquisition, even if it is purchased in the last month of the tax year.

half

10

(40.6) If more than 40% of the total tangible personal property is placed in service for the tax year is placed in service in the last __ months of the year, then all acquisitions are depreciated from the __ in which they were acquired.

- 3
- middle of the quarter

11

(40.9) A __ is a bond swap strategy.

tax swap

12

(40.10) Owners of worthless securities (except partnerships) have __ years to file retrospective claims for tax refunds. Returns can be amended for up to __ years.

7
7