June 16 Quizzes Flashcards
What is the order tax legislation passes through the U.S. legislative bodies? 3
1 house
2 senate
3 house-senate joint conference committee
A decedent’s gross estate generally includes all property in which the decedent had…
An ownership interest at time of death
A decedent’s gross estate generally includes all property in which the decedent had an ownership interest at time of death and anything the decedent had power to…
Revoke/terminate
Trusts and estates may have…
NOL deductions
Trusts and estates may have NOL that can be…3
1 carried back
2 carried forward
3 used as a deduction
For the year in which a trust or estate terminates, any remaining unused NOL passes through to the…
Beneficiaries who succeed the assets of the estate or trust
If the seller is not a merchant, when does risk of loss pass to the buyer?
On tender of delivery
Under a notice-type statute, a subsequent purchaser, whether he or she records or not…2
1 Prevails over previous purchaser
2 who did not record before subsequent purchase
A buyer purchased real property from the seller and received a warranty deed with full covenants. Recordation of this deed is irrelevant if the subsequent party claiming superior title had…
Actual notice of the unrecorded deed
What 2 itemized deductions are added back to taxable income to arrive at AMT income before AMT exemption?
1 state and local income taxes
2 Miscellaneous deductions
An accuracy related penalty applies to the portion of tax underpayment attributable to any substantial understatement of income tax and…
Negligence/disregard for tax rules and regulations
In a nonliquidating distribution a partner…2 (losses and gains treatment?)
1 does not recognize loss
2 only recognizes gain to extent money received exceeds basis
In a liquidating distribution, how is land treated?
Land absorbs Reed’s basis in the partnership after adjusting for
Receipt of cash
A cash basis tax payer who died in 2014 was entitled to receive a $10,000 accounting fee that had not been collected before date of death. The $10,000 should appear in…
Both fiduciary income tax return and estate tax return
In a general partnership, all general partners…
Have a right to participate in management
Failing to keep books of account or records will…
Bar discharge of all debts
In terms of social security law, a self-employed person must contribute an annual amount that is…
Equal to combined contributions of employee and employer
A general clause in a deed would…
Have least significance in deciding ownership
In calculating itemized deductions for 2014, what 2 items should be included?
1 taxes withheld in 2014
2 tax deficiency paid in 2014
An accrual basis tax payer, what would they include in rent revenue?
Nonrefundable rent deposits
A married participant in a pension plan, how many deductions are allowed? Why?
Only the wife can deduct (because doesn’t participate)
If an art project with a purchase price of $600 and FMV of $900 is donated, what is the deduction?
$300 = 900-600
What is the calculation for the foreign tax credit limitation?
Foreign tax credit limitation =
(Foreign TI/Worldwide TI) X US tax
When computing foreign tax credit, separate calculations are made using…2
1 Other foreign source taxable income
2 foreign Nonbusiness related interest earned
