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Flashcards in REG 33 Deck (15):
1

Estimated TAx payment minimums for Small corporation
AGI of _________ or less
___% of what

The safe harbor rules protect a small corporation from a penalty on current-year underpayment as long as the business had a prior-year tax liability, had a current-year adjusted gross income of $150,000 or less, and paid 100% of the prior-year tax liability as current-year estimated tax payments. In other words, the safe harbor is $100,000 in this question.

2

________ % of __________ shares are needed to file a revocation statement and ___________
the S corporation

51%
voting and nonvoiting
terminate the corporation

3

for those ad valorem taxes to be deductible, they have to be based on the _________ of the car and levied __________

have to be based on the value of the car
levied annually

4

When you trade services for stock in a corporation the ordinary income recognized is the ___________ value of the __________ or, if it's cash and stock, the cash plus the _______ of the stock.

When you trade services for ownership in a partnership its the ____________value of the __________.

Corporation: FMV of the services or the FMV of stock plus the cash. Not sure if closely held makes a difference here. Basis is whatever recognized for services.

Partnership: % ownership x FMV of the partnership net assets

5

WHAT TYPE OF COROP CAN'T BE INCLUDIBLE IN AN AFFILIATED GROUP

FIRST ID

TAX EXEMPT
S CORP
FOREIGN SALES CORP
INSURANCE COMPANY
REITS
INVESTMENT COMPANIES
DISC - DOMESTIC INTERNATIONAL SALES CORPOS

6

WHEN DOES SS GET IMPACTED (REDUCED) AND WHY
Directors fees
Pension Payments
Close held corporate stock dividends
proceeds from annuity

You should have noticed that all the answers are passive income except directors fees
Earned income impacts social security

7

Are stock dividends taxable? Or when are they.

No they aren't, and this is what you learned, question was about the exception.

The question said Tom had a choice of stock or cash, he chose stock, but some SH could have cash, so this means it would be taxable.

8

What is taxable when a SH gets a stock dividend and some people are paid in stock, some in cash (it was a choice) stock is recd FMV of $1,000, par is $600

FMV $1000

9

Section 11 1933 New negligence was problem, thought GAAS was the issue, question had GAAP and I said no because it's GAAS

WAs this really a question?

10

What is a Type B reorganization under 368(a)1B

Type that results in parent-sub, tax free, parent acquires all the voting stock in the second corporation.

11

What debts is your estate liable for when you die.

All of them, just because you died doesn't mean everyone else is harmed.

12

C Corporation must use accrual method if ____________ are over ______________

Sales are over 5 million
Not sure if 3 year or not

13

When you transfer stock to a relative, Do you the gain when it sells, but do you recognize the loss?

NO related party transactions IRC 267. I think the basis basically transfers to the relative and they recognize.

So, for example, guy transfers stock with 30k basis to daughter for 20K and then she sells for 25. she won't have to recognize a gain, because she can reduce it by the disallowed loss.

14

Under UCC Warehouse receipt,
the warehouseman is the what ___________
what type of negligence is he liable for

bailee
ordinary negligence

15

Tell why each of these aren't eligible as exempt org
forgot dammit
labor organization for self employed and entrepeneurs

Right answer was a holding title company as an exempt org