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Flashcards in REG 37 Deck (17):
1

What do you need to think about if u see a question on MACRS for residential or non-residential real estate?

IN addition to computing %, must think about mid-month

2

Depreciation questions - two things
___________
___________

rate macrs = 2 x sl
convention mid quarter, half, mid month

3

mid quarter for
mid month for
half year for

mid quarter - placed in service first or last, personal property (not RE)
mid month - always for real estate
half year - everything else

4

Macrs Class
OfficeEquipment, furniture
Computers, Software
Automobiles
Real EState

computers, autos - 5
office equip furn -7, everything not assigned to another class

real estate - 39 non residential
27.5 residential

5

Inherited Property - FMV as of what date _____________
date of death
alternative valuation date
date of distribution

i thought date of distribution
you only use the alternative date when the vu of the property has dropped (less estate tax)
otherwise mvu on date of death

6

you only select the alternative vu date for estate tax when the value of property has

gone down, less tax due

7

Section 1244 stock
this is very discouraging
holding period is _________ years but only for exclusion of ________
Losses are __________ losses no matter ___________, losses limited to __________ for joint
must be an _____________ who owns the stock not a _________
must have bought at _____________ not ___________market
no more than ____ M in assets
not in a _________ business or ______________ or mining or hotels
no more than _______% from passive activity

5 years only for gains
losses are ordinary losses up to 100K for m, 50K for single rest is capital loss
must have bought from original issuance
no more than 50M in assets
not in a service business or mining or hotels
no more than 50% from passive activity
only for individuals not businesses

8

HEY ARE THESE SEPARATELY STATED ON A 1120S K (S CORP)
MARK TO MARKET INCOME
UNEARNED REVENUE
SECTION 1245 GAIN
GAIN OR LOSS SALE OF COLLECTIBLES

SURPRISINGLY
MARK TO MARKET - NO
UNDEARNED - HAasn't been earned yet, duh
Section 1245 - do you take depr on the 1120S yes, not separately stated, so this is the recaptures so that wouldn't be either
Collectibles - yes that would be special rules for

9

separately stated s corp
net income from rental real estate
royalty income
pension expense

net income form rental real estate yes not sure why
royalty income
not pension expense

10

other misc. deductions not subject to 2% floor
G
C

Gambling and CAsualty go here

11

Gambling and CAsualty where are theyon the tax return

Schedule A not subject to 2% floor

12

WHO HAS TO FILE AN M-3, OVER ------ IN ----
WHO HAS TO FILE AN M-1.
WHAT IS AN M-2

M-3 OVER 10M IN ASSETS
M-2 OVER ASSETS OF 25K
AN M-2 BALANCE SHEET AND ANALYSIS OF UNAPPROPRIATED SURPLUS

13

What are the exemptions for trusts
Estate
Simple
Complex

Do trusts get the standard deduction

Estate-600
Simple-300
Complex-100

No

14

Trusts get the ________ but not the ________

Exemption not standard deduction

15

how much income does a personal holding company have to derive from passive income to meet the definition

60% of passive income
no more than 5 individuals

16

As a capital asset real property has a holding period of what before you can get the exclusion (e.g., the 250K for your house)

Must hold or live there for 2 years.

17

Subchapter 0 In the IRS code is what?

Property transactions, gain or loss from, when you trade investment property for cash and other proprety.