Just All Of Reg

Question 1

Treasury circular 230 is for practicing before the

Answer 1

IRS

Question 2

Value of fringe benefits for shareholders who holder greater than 2% of the corporations stock must be:

Answer 2

Included as income. (Less than 2% ownership don’t have to report anything)

Question 3

Surety can be demand for payment

Answer 3

Pretty much damn immediately without asking the debtor, and can go after collateral immediately

Question 4

Self employed health insurance and 50% tax on self employment are both reported on form

Answer 4

1040

Question 5

How many judges preside in US district court cases?

Answer 5

1

Question 6

If a nonliquidating cash distribution reduces a partner’s basis to zero, but he also gets a building, what is the partner’s basis in the building he received?

Answer 6

Zero

Question 7

Limited partnerships share profit and losses according to

Answer 7

Proportionality of each partner’s contribution to the partnership

Question 8

Holding period for stocks in a short sale situation

Answer 8

Date of purchase - date of short sale execution

Question 9

Holding period for short sale

Answer 9

date of purchase to date of short sale execution (as opposed to delivery of the short stocks)

Question 10

Under statute of frauds, the promise to pay a debt (aka be a surety) must be in what form:

Answer 10

Written

Question 11

What type of asset is a depreciable asset used in trade or business

Answer 11

Section 1231 asset

Question 12

Personal property is recaptured (a truck for example) via what recapture rule

Answer 12

1245

Question 13

Nol’s in 2018, 2019, and 2020 can be carried back x years and forward y years

Answer 13

5 and infinity

Question 14

Things required under the secured transactions article of the UCC

Answer 14

1) name and mailing address of debtor and secured party
2) indication of the collateral secured by the financing statement
3) description of the collateral

Question 15

A family farmer can file for debt relief under chapter(s)

Answer 15

7, 11, or 13

Chapter 9 is municipal debt relief and is never covered in reg material

Question 16

You can just never damn deduct the losses from sales to a related party

Answer 16

There is no back side to this card, stop getting these problems wrong

Question 17

When a CORPORATION distributes assets to shareholders in a liquidation, gain is recognized as:

Answer 17

FMV of assets minus shareholder’s basis in the corporation

Question 18

If an itemized deduction is take in a given year, is it includable in taxable income in the following year?

Answer 18

Yes

Question 19

Appreciated proper deduction percentage (of agi)

Answer 19

30%

Question 20

If fmv is less than basis at date of gift, recipient’s basis is

Answer 20

Sale price above cost to donor - cost is basis
If between cost and fmv - sale price is basis
If less than fmv- fmv is basis

Question 21

When a cpa recklessly departs froM the standards of due care, it is

Answer 21

Gross negligence

Question 22

Dividend’s received deduction is usually (blank), but is limited by (blank)

Answer 22

50% of dividends received

50% of modified taxable income

Question 23

To increase foreign derived income, sales of property must be

Answer 23

To non u.s persons for use outside of the u.s

Question 24

For an involuntary petition to succeed, debtors must owe

Answer 24

16750 unsecured, undisputed debt

Question 25

A corporate is required to use the (direct charge off or reserve method)

Answer 25

Direct charge off

Question 26

A corporations net capital losses are carried

Answer 26

Back three years and forward 5

Question 27

Can passive activity from an s Corp be used to offset passive real estate activity?

Answer 27

Yes

Question 28

Assets held for personal use are

Answer 28

Capital assets

Question 29

For those accumulated e&p problems: | List steps

Answer 29

Distribute evenly amongst all current year distributions the current year e&p. These are classified as dividends For accumulated e&p, assign chronologically. Amount of distribution in excess of stuff mentioned above is nontaxable return of capital. Any distribution in excess of basis is taxed as capital gain

Question 30

BEAT applies to corporations with

Answer 30

Annual average gross receipts of 500 million or more for the 3 preceding taxable years

Question 31

An accountant is liable for negligence only to

Answer 31

Third parties whom the accountant knows or should foresee will be relying on the accountant’s work

Question 32

Basis for new property in like kind exchange is

Answer 32

Fmv of new property minus deferred gain (gain realized but not recognized yet)

Question 33

Non separately stated income is calculated by

Answer 33

Adding ‘income after the following deductions’ plus separately stated items (charitable contributions, section 179 deductions etc)

Question 34

For qbi problems, everything is used to calculate taxable income except for personal itemized deductions if they use the:

Answer 34

Standard deduction. And remember to compare itemized vs standard to see which to take.

Question 35

If wages are over the threshold in QBI problem, the full limitation amount (greater of 50% w2/25% w2 plus 2.5% property)

Answer 35

Will apply

Question 36

If the limitation amount for a qbi problem is greater than the tentative qbi deduction, take the

Answer 36

Full tentative amount (20% of qbi)

Question 37

If NONliquidating distribution, basis in property received is equal to

Answer 37

The partnership’s basis in the land, limited to the partner who received the distribution’s basis

Question 38

Specific performance is available usually only when

Answer 38

The property is rare or unique

Question 39

1231 losses are

Answer 39

Ordinary

Question 40

Characteristics of a type b reorganization

Answer 40

Acquired using stock of company or its parent Acquiring company must be in control immediately after acquisition

Question 41

Categories of income for foreign tax credit limitation purposes are

Answer 41

General category income, passive category income, foreign branch income, global intangible low taxed income

Question 42

Main ways an s Corp is terminated

Answer 42

Have over 100 shareholders Have a partnership of c Corp as a stockholder Have a shareholder who isn’t a u.s. citizen

Question 43

If fewer than x creditors, any one creditor owed 16750 or more may file an involuntary petition to take the debtor through bankruptcy

Answer 43

12

Question 44

For c Corp nonliquidating distributions the corporation is treated as

Answer 44

Having sold the assets at fmv. Taxed on any gains (fmv - basis) Losses are NOT deductible though, so if there is a problem asking for gain or loss RECOGNIZED, just look at gains

Question 45

In a partnership distribution, if a partner has zero basis and receives a building, the partner’s basis in the received building is

Answer 45

Zero

Question 46

Less than 2% equals

Answer 46

Nothin to recognize for health insurance paid to that employee

Question 47

Distribution by a c corp does what to a shareholder’s stock

Answer 47

Does not affect it If a person has basis of 300, and receives a distribution of 270 (doesn’t matter what the c corps basis is for the shareholder’s purposes) A corp follows same rules for a liquidating distribution

Question 48

If a partnership basis problem, include debt. Ie, in a liquidating distribution, if total firm debt is 500 and the person owns 10% of the firm, they treat 50k as a gain. Is this the same for llc’s?

Answer 48

No, not for recourse debt. (And no recourse debt is allocated based on ownership percentage).

Question 49

Personal service corporations AND personal holding companies must include what percent of dividends received from unrelated taxable domestic corporations in gross income in computing regular taxable i

Answer 49

100% Psc and phc cruising 100% including

Question 50

A customer payment for sale of inventory in the us is

Answer 50

Not subject to withholding

Question 51

A partner’s interest in specific partnership property is

Answer 51

NOT Assignable to the partner’s individual creditors and NOT subject to attachment by the partner’s individual creditors

Question 52

Asset acquired via gifting’s basis is equal to

Answer 52

The donor’s basis

Question 53

SUSPENDED PALS ARE CARRIED

Answer 53

FOREVER FORWARD

Question 54

Real estate taxes, income taxes, personal property taxes are deductible?

Answer 54

Yes, are deductible

Question 55

Should have know the price was erroneous makes a contract able to be

Answer 55

Rescinded

Question 56

Tangible personal property 1245 or 1250?

Answer 56

1245 And excess gain over ‘recaptured’ ordinary income is 1231 gain

Question 57

Does delivery by a common carrier create nexus?

Answer 57

No

Question 58

Passive activity expenses are only deductible against passive activity

Answer 58

Income. (No portfolio income counted)

Question 59

If you don’t itemize, you’re still allowed to deduct this much in cash contributions to charity

Answer 59

$300

Question 60

Qbi is reduced by deduction for self employed health insurance premiums

Answer 60

If total qb income is 75, health insurance premium is 5, then 70 is your 20% amount

Question 61

For 2018, 2019, and 2020 NOL’s are able to be carried back blank years and forward blank

Answer 61

5 and infinite NOL’s 5 and infinity

Question 62

Foreign derived intangible income is NOT a category for

Answer 62

Foreign tax credit limitation purposes

Question 63

Business rent on self employed income is a

Answer 63

Deductible on schedule c, which is a calculation for agi

Question 64

Basis of property received by a partner is limited to their

Answer 64

Basis in the partnership. If 9 k after cash distribution and basis of property distributed to them is 12k, the recipient’s basis in that partner is 9k

Question 65

General partners can be held liable for what amount owned to anyone on behalf of the partnership

Answer 65

The entire amount

Question 66

Interest expense for debt used to purchase municipal bonds is: Added back from book income or not added back?

Answer 66

Added back

Question 67

Transfer pricing agreement is for: US or non US based subsidiaries

Answer 67

Non US