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Flashcards in REG 8 Deck (19):

Being over 65 and/or blind impacts what?

Standard deduction, not personal exemption


If you are a full-time student and you graduate during the year can your parents still take the dependency exemption and how much can you earn?

Yes they can
There is no gross income limits test


Is social security used in the gross income test for exemptions?

No, just interest income and other earned/unearned income.


Does head of household apply to a qualifying relative?



Do dependency exemptions have to live with you?

No if you support your elderly parent you can claim the exemption.


Under what circumstances can you not claim a dependent even if they live with you, are a full-time student and you provide over half their support.

If they are married, file a joint return and have to pay. (why if they don't IDK).


For each person claimed as a dependent what identification numbers?

Adoption taxpayer identification number (WTF)
Individual taxpayer identification number (what is that)


If you are married filing separately, can you take an exemption for your spouse?

Yes if they have no income and aren't claimed as a dependent elsewhere.


Do dependents have to live with you all year if they satisfy all the other tests?

NO, but if they don't they have to be related by blood, adoption, or marriage


What is the relationship test for dependents?

Blood, adoption, marriage immediate family
Must either be related to you or live with you, but not both


Is a partnership interest in specific property assignable to partner's individual creditors or attachable?

Can assign interest generally but not specific rights in partnershop property.

Creditors can file a claim against entire property and then (maybe) specific assets would be attached.


Like Kind Exchanges
Basis of Property Acquired
What section?

Adjusted Basis of Property Surrendered
Less Boot Rec'd
Plus Boot Given (expenses unless you use to net out on taxes I think)
Plus Gain Recognized

You may not recognize a gain if the FMV of what you got + boot is less than what the basis was of what you gave up


Like Kind Exchanges
Gain Recognized is lesser of what?
Can you recognize exchange expenses?

Gain Recognized is Lesser of:
Gain Received (the FMV of the new + Boot Rec'd - Old Basis - Expenses - boot given)
Boot Received less expenses

Notice it's lesser of

I would just go with the boot given - expenses


Small Business Stock
Section 1202
Qualified Small Business Stock for purposes of applying rollover and exclusion rules defined

Domestic C Corp
Seller is original Owner
Corporations assets did not exceed 50 million at time stock was issued
Received after August 10, 1993


How is qualified small business stock taxed when they sell it.

Held for more than 5 years
50% unless it's 9 months or so between feb and sept 2010 and then only 25% is taxable

Who could remember this?
75% is excluded and they have 75% as one of the answers

I guess you go with 50% which is $3,000, that isn't there as an answer choice
This is from an old IRS question - true false
there's no way to strategize this, you'd have to guess


How long does a taxpayer have to live in a home to exclude gain and what are the exclusions.

Does it matter that it's due to a hardship?

It's 250,000 single, 500,000 married
You have to live there 2 years

Unless there's a hardship (job change, health or other unforseen circumstance)
Prorated by number of months/24 months


Like Kind Exchanges Question 786 and 781
What is the strategy for solving these as far as gain recognized (or not)

1. Compare the basis in what you give up to
2. The FMV of what you got (including boot)
3. Is what you got more - recognize the boot as a gain and add it to the basis
4. Is what you got less - don't recognize any gain and subtract the boot from your old basis

Can net expenses out of there too


If you exchange a duplex and you live in one half and rent the other and it gets condemned (which is like selling it I guess) is that a like kind exchange?

Question 787

No those rules don't apply I guess because the gain isn't taxed.
At least in this question, I've been learning about boot and there was a gain on the rental duplex side so I thought you would recognize it.


What are trebel damages?

Treble damages, in law, is a term that indicates that a statute permits a court to triple the amount of the actual/compensatory damages to be awarded to a prevailing plaintiff. Treble damages are a multiple of, and not an addition to, actual damages. Thus, where a person received an award of $100 for an injury, a court applying treble damages would raise the award to $300.[1] Some statutes mandate awards of treble damages for all violations. Examples of statutes with mandatory treble damages provisions are the Clayton Antitrust Act[2] and RICO.[3] Some statutes allow for an award of treble damages only if there is a showing that the violation was willful. For example, "up to three times the amount found or assessed" may be awarded by a court in the United States for willful patent infringement.[4] The idea behind the creation of such damages is that they will encourage citizens to sue for violations that are harmful to society in general,[5] and deter the violator from committing future violations.[6]