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Flashcards in REG 36 Deck (19):

What type of organization is often restricted to use by professionals and is not availabel in all states

Limited liability company


Gifts given right before someone dies are/are not includible in the gross estate.

Are nto


Life insurance proceeds payable to the wife are/are not included in gross estate?

Yes they are if he paid for the policy. Marital deduction gets rid of them though


Does gross estate include cost or FMV of securities owned by the decdent

FMV everything is FMV and if they own it (not jointly) it goes in there 100%. If the wife owns say land, it's 50% of the FMV.


Now what's odd is, well, with the estate look for "He owned" because you would think cash in a joint account went 50/50 but if it just says "he owned" it's in the gross estate.



Executors fees - deducted where? _________ tax return or _________ fiduciary tax return

CAnnot be deducted on the ___________ tax return.

Estate or fiduciary.



Three tax returns to worry about at death -

individual, fiduciary, estate


in computing distributable net income a capital gain is ________ from taxable income



capital gain is it part of taxable income to the trust on the fiduciary income tax return
Yes or no

yes it is, but I'm confused, yeah it's there, but then you deduct what you distributek

but if things get taxed if retained and then are taxed again?


gift tax liability, life time, what does it go with

it's really the estate tax deduction of 5.34 million that. you can use up over your lifetime


who is the gift tax levied on

the giver, pay attention to that.


Accounting income for the trust does or does not have capital gains in it?

I think it does


The maximum taxable income to beneficiaries is the ____________

DNI - it's just like any other pass through entity. Only pay tax on the DNI and the rest is a return of capital.

d"Beneficiaries are taxed on their share of the trusts income distriubted to them but not more than their share of dni


to get the earned income credit you have to have _________ and you can't have __________

earned income or disqualified unearned income which is over $3,350


Where are casualty losses deducted.

Schedule AAAAAAAA - own line tiem


personal holding company must pass two tests ___________ and ___________

five or fewer shareholders
60% personal holding company income


what is personal holding company income

passive income adjusted ordinary income from passive sources


what section of code is personal company income defined under

Subtitle A
Chapter 1 income Tax
Subchapter G (for Greedy) Corporations Used to Avoid Tax on Shareholders
Part II Personal HOlding Companies
Section 543


Difference between recession and revocation

Recission return the parties to original states
Revoke - mutual cancellation or withdraw the offer