June 16 Quizzes Flashcards Preview

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Flashcards in June 16 Quizzes Deck (35)
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1
Q

What is the order tax legislation passes through the U.S. legislative bodies? 3

A

1 house

2 senate

3 house-senate joint conference committee

2
Q

A decedent’s gross estate generally includes all property in which the decedent had…

A

An ownership interest at time of death

3
Q

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…

A

Revoke/terminate

4
Q

Trusts and estates may have…

A

NOL deductions

5
Q

Trusts and estates may have NOL that can be…3

A

1 carried back

2 carried forward

3 used as a deduction

6
Q

For the year in which a trust or estate terminates, any remaining unused NOL passes through to the…

A

Beneficiaries who succeed the assets of the estate or trust

7
Q

If the seller is not a merchant, when does risk of loss pass to the buyer?

A

On tender of delivery

8
Q

Under a notice-type statute, a subsequent purchaser, whether he or she records or not…2

A

1 Prevails over previous purchaser

2 who did not record before subsequent purchase

9
Q

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…

A

Actual notice of the unrecorded deed

10
Q

What 2 itemized deductions are added back to taxable income to arrive at AMT income before AMT exemption?

A

1 state and local income taxes

2 Miscellaneous deductions

11
Q

An accuracy related penalty applies to the portion of tax underpayment attributable to any substantial understatement of income tax and…

A

Negligence/disregard for tax rules and regulations

12
Q

In a nonliquidating distribution a partner…2 (losses and gains treatment?)

A

1 does not recognize loss

2 only recognizes gain to extent money received exceeds basis

13
Q

In a liquidating distribution, how is land treated?

A

Land absorbs Reed’s basis in the partnership after adjusting for
Receipt of cash

14
Q

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…

A

Both fiduciary income tax return and estate tax return

15
Q

In a general partnership, all general partners…

A

Have a right to participate in management

16
Q

Failing to keep books of account or records will…

A

Bar discharge of all debts

17
Q

In terms of social security law, a self-employed person must contribute an annual amount that is…

A

Equal to combined contributions of employee and employer

18
Q

A general clause in a deed would…

A

Have least significance in deciding ownership

19
Q

In calculating itemized deductions for 2014, what 2 items should be included?

A

1 taxes withheld in 2014

2 tax deficiency paid in 2014

20
Q

An accrual basis tax payer, what would they include in rent revenue?

A

Nonrefundable rent deposits

21
Q

A married participant in a pension plan, how many deductions are allowed? Why?

A

Only the wife can deduct (because doesn’t participate)

22
Q

If an art project with a purchase price of $600 and FMV of $900 is donated, what is the deduction?

A

$300 = 900-600

23
Q

What is the calculation for the foreign tax credit limitation?

A

Foreign tax credit limitation =

(Foreign TI/Worldwide TI) X US tax

24
Q

When computing foreign tax credit, separate calculations are made using…2

A

1 Other foreign source taxable income

2 foreign Nonbusiness related interest earned

25
Q

What is the classification of Land operated as a parking lot and a shed on the parking lot?

A

Both are section 1231 assets

26
Q

If a partner sells his partnership interest to an outsider for $68,000 cash and is relieved of a $3,000 liability, what is the total amount realized by the partner?

A

$71,000

27
Q

Alternative minimum taxable income before the adjusted current earnings (ACE) adjustment includes an adjustment for…

A

Tax exempt interest taking on private activity bonds

28
Q

If there is taxable income of $500,000 and income tax of $100,000, what is the maximum amount of accumulated taxable income that may be subject to accumulated earnings credit?

A

$150,000 = $500,000-$100,000-$250,000

29
Q

When Adam opens a joint account with his son’s friend with $70,000 deposited into it. There is a gift when the son’s friend…

A

Withdraws money from the account for his own benefit

30
Q

National Environmental Policy Act enforcement is primarily accomplished by…

A

Litigation of persons who challenge government decisions

31
Q

An oral agreement that would be binding without consideration would be…

A

An agreement that modifies an existing sales contract

32
Q

A subsequent bonafide purchaser would take the property over…

A

A previous mortgage holder who fails to record

33
Q

A bank penalty, what is its tax treatment?

A

Can be deducted from gross income in arriving at AGI

34
Q

In computing PHC tax consent dividends that are not paid are…

A

Deductible

35
Q

In a recapitalization, in which stock is exchanged for stock and bonds, there would be a recognized gain for…

2) why?

A

Bonds

2) bonds are considered boot

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