Reg3 Flashcards
What is QPAI?
Quanlifed production activities income
What is the limit for copropre charitable contributions?
10% of taxabale income
Can a corporateion deduction 3,000 in captial losses?
No, only inviduals can deduct the 3,000. Coproptions can only deduct up to their captial gains to offset them
What is the captial loss carryover rule for coprtions?
3 back 5 forward
What entites do not get the divdiends received deduction (DRD)?
- Personal service corp 2. Personla holding companies 3. personally taxed S corps
What is the convention to be used for MACRS deprepciton for compaines for machinery and equpiment?
Half year convention is the normal (when we always assume we statrted to use it in the middle of the year). However, if over 40% of the deperciatbale assets were placed in the last quarter then the mid-quarter conention applies. This is the breakage of the 4 quarters, take the difference and dividue by two.
What is the conention for real eastate for MACRS?
Mid-Month convention
What is Section 1231 property?
Assets that are principally depreciable personal and real property used in a trade or business and held over 12 months
What is the captial gain treatment for section 1231 proptery?
Taxed at captial gain treatment or the 5% to 15%
What is a section 1231 loss do?
It is treated as an ordinar loss. Which means that it is not limited to excess fo captial gains AND it is deducted immeditaley In full wihtout consideration of captial gains
What are the adjustments for AMT for coprotions?
LIE L-Long-term contracts (difference between revenue calcualated under the completed contract method & under the percentage-of-completion method) I-Installment sales (differencebetween full accrual revenue and installment sales revenue) E_Excess of depreication of tangivle property placed in service after 1986 over straight-line for real propery (using 40 yrs life) OR 150% declinin balance for personal propery using the applicalbe class life
What are the prefernces for AMT for coproations?
PPP P-Precentage depletion P-Private Activity Bonds P-Pre-1987 ACRS Depreciation
What is the calcuation for Adjuste Current Earnings (ACE) for AMT for coproations?
MIND M-Municipal bon interest I-Increase life insurance cash surrender value N-Non-straight line depreciation after 1989 vs. ADS D-Dividends received deduction (less than 10% owernship/70% deduction)
What are the requrments to be defined as a personal holding company?
- 50% owrned by 5 or fewer ppl and having 60% of adjusted oridnar gross income conisitng of NIRD N-Net rent I-Interest that is taxable R-Royalites (but not minerla, oil, gas, or copyright royalites) D-Dividneds from an unrelated domestic corp
