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Flashcards in REG 12 Deck (16):
1

Are advertising costs for the start up of a business organizational costs.

No

2

/Are temporary directors fees for the start up of a business organizaitonal costs

YES

3

SURVEY OF POTENTIAL MARKETS ORG COST?

NO, THOSE ARE START-UP COSTS

4

COST OR ORGINZATIONAL MEETINGS ORG COSTS

YES

5

SET UP OF ACCOUNTING SERVICES ORG COSTS

NO START UP COSTS

6

CAN YOU TAKE A DRD DEDUCTION FOR AN REIT

NO

7

FOR CORPORATIONS ARE THERE DIFFERENT TAX RATES FOR SHORT AND LONG TERM CAPITAL GAINS

NO

8

NOL CARRYBACK AND CARRYFORWARD PERIODS

2 BACK AND 20 FORWARD
897 VERY GOOD QUESTION

9

FOR CORPS THERE'S NO $3,000 ON CAPITAL LOSS LIMITATION SO WHAT DO THEY USE?

CAPITAL LOSSES ONLY DEDUCTIBLE TO EXTENT OF CAPITAL GAINS

10

IS LAND USED IN BUSINESS A CAPITAL ASSET YOU CAN TAKE GAIN/LOSS ON?
HOW ABOUT MACHINERY?
HOW ABOUT SECURITIES HELD?

YES THE MACHINERY AND LAND ARE, BUT THEY FALL UNDER SECTION 1231 IF HELD MORE THAN A YEAR.

SECURITIES DEFINITELY ARE.

11

PASSIVE ACTIVITY LOSS RULES APPLIES TO WHAT TYPES OF ENTITIES?

FIRST OF ALL IT HAS TO BE SUBJECT TO INCOME TAX (So no Pass through)
And then it has to be a person or something someone would set up for a tax shelter

Individuals (it ends up here by the flow through, but the s corps and partner don't pay taxes)
A closely held corporation (owned more than 50% by one individual) vs. widely held corp
Trusts
Estates
Personal Service Corporations

12

What is the carryback or foward period for capital losses of a corporation? And what can it only offset? What type of loss is it treated as?

Carryback 3 years and carry forward 5 years
Can only offset capital gains (not ordinary income)
Treated as a short-term capital loss

13

Where are Net Operating Loss Deductions in the IRS

sectin 172

14

Can corporations deduct casualty losses in full?

Yes

15

Corporations capital losses cannot produce or increase what?

Net operating losses. You can't add it onto the operating loss. And current year losses when computed do not include losses from other years.

16

Estimated TAx Payments for Small Corps

100% of preceding year only if had tax liability (profit)
small corpo is one that has not had taxable income exceeding 1 mill in three previous years

if can't use 100% of last years can use annualized income method