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Flashcards in REG MNEUMONICS Deck (8):
1

MY REGS


What is it for: Statute of Frauds which is a statute that decrees what contracts must be in writing.

What does it apply to: Partnership doesn't req. written agreement unless these conditions exist

M - Marriage as consideration (you marry my daughter, I give you vp job)
Y - Contract is for more than a year
R - Contract for real estate (not intent to sell, but actual contract)
E - Executor of Estate
G - Sale of Goods worth more than $500
S - Suretyship (guarantee of another's debt)

2

BAILED. really is BAIDEL
BODL is really Better

Basis Original
Additional investments for stock
Income
Distributions
Sub-Total Here for limitation on Tax Return between two other categories
Expenses Non-Deductible
Losses and Deductions ?

Basis, Ordinary Income, Distributions, Losses
If there's nothing left after distributions you can't recognize a capital loss or ordinary Loss

3

BRATS - Express Trust

Trust created for an express purpose
B-Beneficiary
R - Reasonable Intent (i.e., not to avoid taxes)
A - Assets (must have some)
T - Trustee (but does not need to be named, can be selected by court or executor)
S - Specified Life (period of time or in perpetuity)

4

Formula for Trust and Estate Taxable Income
GDP TDa 4 TAT

G-Gross Incme
D- Less Deductible Trust Expenses
P - Less Personal Exemption Amount ($100 Complex, $300 Simple, Estates $600)

T - Taxable Income before Distributions
D - Less Distribution Deduction

T - Equals Taxable Income
A - Times Applicable Tax Rate
T - Tax Liability

5

Harry Uses TAx Information (2%)

H - Hobby Expenses
U - Unreimbursed EE Business Expenses
T - Tax Preparation FEes
I - Investment Expenses

6

Harry Usually Prefers Journal Using Journal Entries To Show Total Operating Expenses
Employee Business Expenses Subject to 25

Home Office Expenses
Union Dues
Professional Dues and Membership
Uniforms
Job Seeking Expenses
Entertainment Expenses
Transportation Expenses
Subscriptions to Business Journals
Travel Expenses
Outside Salesperson Expenses
Education Expenses

7

Harry Uses TAx Information (2%)

H - Hobby Expenses
U - Unreimbursed EE Business Expenses
T - Tax Preparation FEes
I - Investment Expenses

8

Harry Usually Prefers Journal Using Journal Entries To Show Total Operating Expenses
Employee Business Expenses Subject to 25

Home Office Expenses
Union Dues
Professional Dues and Membership
Uniforms
Job Seeking Expenses
Entertainment Expenses
Transportation Expenses
Subscriptions to Business Journals
Travel Expenses
Outside Salesperson Expenses
Education Expenses