ninja points Flashcards
1
Q
PHC can deduct
A
dividends paid & consented too
2
Q
warehouse receipt when does title transfer
A
when negotiable instrument is received
3
Q
estate taxes deductible
A
charity, funeral, marital
4
Q
flex spending account
A
500 carryover or grace period up to march 15
5
Q
token gifts
A
one time deal,dont impair independance
6
Q
cpa direct mailers
A
cpa is not allowed to associate
7
Q
Fasb overruled
FASB does
A
yes
improve financial standards for non government entities
8
Q
complaint form rules
A
based on states
9
Q
cpa finds an error
A
1st go to client
10
Q
1943 act 105-b type of suits
A
criminal & civil liability
11
Q
CPA records to a firm taking over
A
must have consent of client
12
Q
neglience gives CPA liablility to which parties
A
ANY known third party who RELIED
Ultramarites case only third parties in PRIVITY - excludes foreseen
13
Q
third party beneficiary must prove
A
materiality, damage, negligence, and reliance
14
Q
CPA states a fee; what goes against Principles of Ethical Conduct
A
actual fee would substantially higher
15
Q
Federal Financial Receipient Audit what office is responsible
A
Government Accountability Office
16
Q
regulation agency
A
government group
17
Q
CPA not liable for tax damages caused by
A
refusing to sign a filing extension
18
Q
Negliegence must prove
A
legal duty, breach, damage, proximate cause
19
Q
Expenses a CPA must
A
inquire about the EXISTENCE of documentation
20
Q
C Corps accounting method
A
made on initial tax return
21
Q
What comes after trail courts
A
US court of appeals
22
Q
IRS seizing for penalty taxes
A
SD and allowable personal exemptions *52
23
Q
organizational expenses threshold
A
anything over 50K not allowed to take the 5K immediate deduction; amount over 5K reduces the 5K amount
24
Q
tax year end in the middle of the month
A
52-53 week year
25
LLC that doesn't file for 8832
| 8832 is
partnership
| 8832 - form to elect out of default classification
26
not IRS examination
VERBAL
27
estimated payments time frame
15th day of each 4 quarters of corps tax year
28
exemption from federal tax income
title holding organizations; civic organizations benefiting communities; labor orgs. consisting of employees; buisness associates to promote common buis. interests
29
penalty applies to
any SUBSTAIN understatement
30
under 25k tax case
make a small case request
31
writ of certieri
supreme court petition to review a lower courts decision
32
tax decisions consider
tax and non tax considerations
33
repossession taxpayer recognizes
gain and loss
34
UTP
- specific info regarding uncertain tax positions (multiple positions
- 1120 and 1120 forms
- assets over $100 million
- F/S
35
postmarking
date a return in filed
36
to avoid underpayment
include AMTI
37
permananent differences between taxable income and pre-taxable income
neither intra nor inter period
38
most freely transferable
corp
39
safe habour
same as estimated tax rule 100% of preceding year
40
listed property disallows
non-buisness to not reduce by 179
41
treaty
formal contract multinational law
42
taxpayer 1st time new tax year
due date using tax year
43
corporation short-period taxation formula
calculate annualized income; then # of months calculation
44
installment payment of current year tax
pay interest and penalties
45
IRS publications
not primary source of tax research
46
use tax
when sales not is not imposed on items
47
corp bad debts
direct charge off
48
work product doctrine
protects work product fro detection
49
uniform capitalization threshold
- only exceeding 10million receipts 3 preceding years
| - tangible real or personal property
50
unacceptable inventory method
base method
51
annualizing tax rate
12 month period marginal tax rates used (important for short-year)
52
changes in examination signed by an agreement
paid in 21 days and less than $100 million, no penalty or interest
53
partnership filing
15th day fourth month after TAX YEAR END
54
Sole Proprietors/ Farmers method
inventories must use accrual
55
1st year depreciation
double declining 200% (2/7)
56
VAT tax
each stage of production process; form of consumption tax
57
goal of tax planning
optimizing the tax payers after tax result
58
IRS can collect taxes how many years after assessed?
10
59
receive stock for service what is the gain on TR
FMV at the date of gift NOT FMV of services
60
completed contract revenue recognition
after the contract is satisfactory completed
61
inherited installment obligation
taxable to beneficiary at decedents rate
62
look back rule
recal. annual profit reported on a contact
63
FEDERAL TAX EXEMPT
social clubs with limited social use
political orgs
Frats must operate under the lodge system
64
unified rate schedule
lifetime gifts and transfers at death taxed on a cumulative basis
65
179 formula
price-25K *(2/MACRS years)*.5 = A
| A+25K = final answer
66
normally leases
paid by landlord to terminate are ordinary
unless specifically stated as a capital asset w/ no basis then
capital gain
67
federal gift tax excludes
direct payments INCLUDING POLITICAL
68
oil and gas depletion
15%
69
267 rule
cash basis seller - accrual basis buyer
70
taxable treatment for short term capital gains
ORDINARY INCOME
71
taxable gift exclusion limited to
present value gifts
72
covenant
intangible asset 15 year amort. life
73
replacement property basis
purchase price - less allowance received
74
gift property sold at a LOSS
normally gifts/sales valued at
inheritance
lesser of basis or fmv
donor basis
always FMV
75
business assets long term at a loss treatment
section 1231
76
relative does recognize a transaction when
they are at a loss
77
marital deduction exclusion
contingent gift
78
when you use SD how are refunds treated
no refund because tax Benefit rule does not exist
79
charitable income
| 50% limitation
is subject to phase outs
80
car personal property tax only deductible if
imposed annually and assessed in proportion to value
81
homeowners exclusion special provisions
if spouse lives in the home longer than there time living in it can be considered part of the two years
82
Domestic Service subject to SS and medicare
| Domestic Service Withholding
over 1800 to one employee in a calendar year
| at employees request
83
transferred life insurance policy
policy amount - basis = gain
84
high income tax payers itemized reduced by
lesser of 3% of excess of AGI income over the applicable amount or 80% of certain itemized
85
individual funeral expenses
not deductible
86
```
tax credits:
general buisness
foreign tax
oil recovery
minimum tax credit
```
multiple credits
2-4 = specific credits
87
IRA phaseout calc.
amount between 181 - 191 = 10
| amount over phase out * 2 / 10 = AMOUNT CONTRIBUTION MUST BE REDUCED BY
88
2014 cancellation of a mortgage must be reported as
income
89
non discriminatory
70% of all employees & same benefit for all
90
oil royalties
supplemental income and loss
91
businesses can deduct for interest expense
amount used for business
92
IRA new home buyer limitation
2years
93
NON-refundable security deposits
are considered revenue
94
net business loss must be offset
wages and rental income for the year
95
personal losses (ex personal auto)
non-deductible as a capital loss
96
earned income credit does not allow
pension or
97
illegal activities
can deduct COGS
98
S Corp health insurance
tax to owners owning over 2%
99
EE Series
issued after 89, taxpayer over 24, & individual or joint with spouse
100
Roth IRA tax free for over 60, how long must you keep it in
5 years
101
Obama Care prices
adult 95, child half
102
chartiable car rate
14 cents per mile
103
traditional to Roth IRA rollover
taxable
104
work opportunity credit
120 hours
105
tax assessments itemized deduction
only repairs and maintenance
106
joint return excludes
foreigners, different tax years
107
home equity indebtedness is the lesser of
amount OR FMV of property reduced by outstanding loans
108
Partnership liabilities
not cash not mortgage
109
who can't deduct fringe benefits
sole proprietors; s corps under 2% yes
110
syndication costs
promoting or selling
111
allocation to trust principle
no yearly expenses, which are allocated to income
| mortgage principle payments yes
112
cash received in excess of partnership & land received as well
cash is the only gain recognized
113
3 elections made at the partner level
Partnership elections
1- depletion
2- reduction of basis of depreciable property
3- foreign taxes
4-account method
5- amort. period
6- cost recovery
7 - R&D
114
Corps loss on stock redemption
when liquidation is complete
115
Partnership sale formula
A) recognize the amount of sale
b) recognize relieve liablities
c) subtract original basis
d) gain is a capital gain/ loss only recognized up to 3k
116
dni does not include
long-term capital gains to corpus
117
partnership property distribution
1-nonliquidation
2-liquidation
1-basis
| 2-fmv
118
bingo games
not unrelated UBI
119
testamentary trust
after death
120
annual information return
PF and NPOS over 25K
121
corp goodwill
amount paid for assets - fmv of assets transferred to corp
122
ubi
not related to a NPO mission
123
partnership basis
reduced by distribution 1st
124
trusts taxability
whoever gets the money is taxed
125
built in gains corp is subject to
35% tax and NOL and capital loss deduction
126
NOL and charitable contributions and DRD
NOL doesn't allow charitable only allows DRD
127
included in tax benefit rule
bad debts received
128
Itemized threshold amount
AGI
129
passive income versus portfolio income
P&L --- interest, dividends, ect.
130
AGI phaseout for IRA deduction
between 96 & 116
131
at risk applies to
partner not partnership
132
personal short-term gains
ordinary losses
