Reg4

Question 1

When can a paranter who is entering into a parentship be taxed for doing so?

Answer 1

If the partnership interest is for services rendered OR the propery given has excess libabilites attached

Question 2

What does the income distribution deduction equal?

Answer 2

The lesser of actual distribution to beneficiary OR DNI (less tax-exempt income)

Question 3

What are the characterists of a simple trust?

Answer 3

Makes distrubtions out of current income only, is requried to distribute all of its income currently, cannot take a deduction for a charitable contribution, and it is entitle to a 300 exemption

Question 4

What 4 things must be included in the articles of incorporation?

Answer 4

1.) the name of the corp 2.) names and address of the corp’s registered agent 3.) names and addresses of each of the incorporators 4.) number of shares authorized to be issued

Question 5

When the corporate veil be pierced?

Answer 5

1.) commingling personal funds with corp funds 2.) inadequate capitalization (can’t have too small of money to start with) 3.) committing fraud on existing creditors

Question 6

What are the fundemental corp changes that require shareholder approval?

Answer 6

DAMS D-Dissolution A-Amendments to the articles of incorporation M-Mergers, consolidations, and compulsory share exchanges S-Sale of substantially all the corp’s assets outside the regular course of busuiness