June 7 Quiz Flashcards
If a partner receives cash, unrealized receivables or inventory in a liquidating distribution…
A loss may be recognized
Fixed assets used in business that have been held for a short term holding period are taxed as…
Ordinary gains
Business assets include all furniture, equipment and machinery used in…
Business venture
Net earnings from self employment is reported on…
Schedule C
Net earnings from self employment is reported on schedule C. Self employment tax and health care is…
Not deductible on schedule C
Oral advice should be documented if the tax payer…
Seems to not truly understand the consequences of the tax
Implication
A CPA should consider whether to provide oral or written advice to a client based on the…
Tax sophistication of the client
A group term life insurance plan is considered discriminatory when…
The plan discriminates in favor of key employees
Each jurisdiction sets its own standards for filing complaints against CPA’s but generally…
Any method will suffice
Gift tax marital deduction does not apply to transfer of a…
Terminable interest in property
A terminable interest is one that will terminate on a lapse of…3
1 time
2 occurrence
3 contingency
In a liquidating distribution, if only other property (equipment) is received by partner then…
No loss may be recognized
