R3R4 FINAL Flashcards
How are gains on the sale of antique treated as?
Long term capital gains
What is the basis of inherited property?
FMV of the property at the date of death or alt valuation date
If a company has an applicable financial statement, how much can the company expense per the de minimus rule?
up to $5k per gift
What is holding period requirement inorder to use the corporate DRD?
investor corporation must own the investees stock for a specified 45 days
What is a way that there will be no underpayment of estimated tax penalty imposed?
if total underpayment of tax for the year is less than $500
what is a 1244 loss considered?
Ordinary not capital
What are items that factor into form 1120 line 26 (other deductions)?
all other expenses that do not have their own line item (Org expenses, office supplies, utilities)
How are losses on personal use assets treated?
Not deductible idiot
Define the NOL deduction rules.
NOL from pre2017 - end of 2017 -> Carry back is 2 years and carry forward is 20 years
NOL after 2017 - before 2021 -. NOL Carryback is 5 years and CFWD indefinitely
what is the result to shareholders of a distribution in complete liquidation of corporation?
shareholders treat it as full payment for their stock -> treated as capital gain or loss
How to calc basis in new prop?
Deferred G/L (Real - rec) +/- FMV of property receiving
What are the DRD thresholds?
20% less = 50% limitation
20% -80% = 65%
80% and over = 100% (meaning net amount of dividend income is 0)
How do you calculate Section 291 expense? (what are the 3 requirements prior to calculating the expense?)
- building is business use real property
- must be held for longer than 1 year
- C corporation
- Gain = 20%*lessor of (prior depreciation OR gain)
the remainder of gain is 1231 gain
What are the two types of PHCI?
- Interest income included in PHCI only if its included in the receiving corps gross income
- Dividend income from unrelated domestic corporations
What is the basis of an asset acquired by gift?
Carryover basis
