REG 38 Flashcards Preview

REG LISA > REG 38 > Flashcards

Flashcards in REG 38 Deck (13):
1

ELECTING TO AMORITIZE ORGANIZATIONAL COSTS MEANS THAT YOU DO TAKE THE $5,000 AND THE COSTS FOR THE FIRST YEAR PRO-RATA

"ELECT TO AMORITIZE" DOES NOT MEAN YOU DON'T TAKE THE 5K, IF YOU DON'T ELECT MAY ADD ONTO BASIS? IDK

2

ALIMONY MUST BE IN CASH, BUT YOU CAN PAY IT TO A THIRD PARTY FOR RENT SAY

A

3

BE SURE TO NOTICE THE DISTINCTION IN THE WORDING OF THE QUESTIONS AND THE TENDENCY TO GET YOU TO THINK PARTNER WHEN IT'S REFERRING TO THE PARTNERSHIP AS AN ENTITY

EXAMPLE THE "PARTNERSHIP INTEREST" IN ACQUIRED PROPERTY REALLY MEANS "THE PARTNERSHIP'S INTEREST" BEGINS ON WHAT DATE

IT'S REFERRING TO THE FACT THAT THE HOLDING PERIOD FOR A 351 ASSET BEGINS ON THE SAME DAY AS THE PARTNER CONTRIBUTED IT

4

if you receive a non=taxable stock dividend, how do you split up the basis between the old and new

fmv of the two
ex. commn 450 1 share and get 1 share of preferred mv 150

you paid 300 for the common

so now it's 225 and 75

5

Corporate Non Liquidating distributions
appreciated property - recognize
distribute at a loss -

appreciated property - recognize gain
distribute at a loss - don't recognize loss, SH picks up at corp basis

6

basis of sh when property received from c corp with a liability
without
liability more than basis

c corp is going to add that onto the fmv and recognize the whole thing as a gain if the land is worth more than the liability

they aren't going to recognize anything if they are underwater

the sh uses the fmv of the land provided the liab doesn't exceed the basis
if it does then liabitly assumed is basis

7

If there's a like kind exchange and you are figuring out the realized, do you use the bv (after depreciation) or the FMV

FMV of what you got
Less
BV of what you gave up

any boot (liability assumed + cash) is gain

8

LIKE KIND EXCHANGES PROPERTY BASIS TO RECEIVER

WHAT YOU GAVE UP - BOOT RECEIVED

NOTICE WHAT YOU GAVE UP

EVEN IF YOU LOSE OUT AND GIVE UP A HIGHER VALUED ASSET

9

WHAT TYPE OF CONDUCT WILL MAKE A CONTRACT VOIDABLE
PHYSICAL COERCION
FRAUD IN THE INDUCEMENT
FRAUD IN THE EXECUTION
CONTRACTING WITH A PERSON UNDER GUARDIANSHIP

I GUESS VOID IS THOSE REAL DEFENSES
INDUCEMENT IS THE PERSON COULD HAVE ENTERED INTO THE CONTRACT BUT WAS FOOLED

WHERE AS THERE WAS NO WAY YOU COULD DO THAT IF THERE WAS DURESS, OR EXECUTION (FRAUDULENT DOCUMENT) OR MINOR

10

ACCORD AND SATISFACTION IS WHEN YOU

CHANGE THE OLD TERMS FOR NEW ONES AND YOU CAN SATISFY BOTH CONTRACTS BY PERFORMING THE TERMS OF THE SECOND

YOU AGREE TO PAY IN GOODS INSTEAD OF MONEY FOR A DEBT

11

CONSIDERATION HAS TO ___________ IT DOESN'T HAVE TO BE EQUAL

MUTUALITY OF CONSIDERATION, YOU CAN QUIT CLAIM A HOUSE FOR A BUCK

12

AFFLIATED CORPS - WHOSE THE ONLY ONE ALLOWED IN THIS LIST
FOREIGN SALES CORP
REIT
HOLDING COMPANY
REGULATED INVESTMENT COMPANY

NOT SURE WHY THE OTHER THREE DON'T BELONG ONLY THAT IT LISTS THEM IN THE TAX LAW, PROBL A BAD QUESITN

13

CAN S CORPS FILE CONSOLIDATED RETURNS, INSURANCE COMPANIES, REIT
REGULATED INVESTMENT COMPANIES, DOMESTIC SALES CORPS

NO