WGU - C237 - TAXATION 1 Questions & Answers (SCORED A)

30 -ANSWER Number of days that are initially given to an audited individual or business to either request a conference with an appeals officer or agree to the proposed adjustment. (Ch 2-6) 90 -ANSWER Number of days that are given to an audited individual or business after the appeals conference to either pay the proposed deficiency or file a petition in the US Tax Court to hear the case. (Ch 2-6) 12 Month Rule -ANSWER A regulation that allows prepaid business expenses to be currently deducted when the contract does not extend beyond a specific numbers of months and the contract period does not extend beyond the end of the tax year following the year of the payment. (Ch 6-15) 1231 Assets -ANSWER Depreciable or real property used in a taxpayers trade or business owned for more than one year. (Ch 11-8) 1231 Look Back Rule -ANSWER A tax rule requiring taxpayers to treat current year net (Ch 11-18) 1245 Property -ANSWER Tangible personal property and intangible property subject to cost recovery deductions. (Ch 11-10) 1250 Property -ANSWER Real property subject to cost recovery deductions. (Ch 11-14) 291 Depreciation Recapture -ANSWER The portion of a corporate taxpayer's gain on real property that is converted from 1231 gain to ordinary income. (Ch 11-14) 481 Adjustment -ANSWER A change to taxable income associated with a change in accounting methods. (Ch 9-30) Abandoned Spouse -ANSWER A married taxpayer who lives apart from the spouse for the last 6 months of the year, who files a tax return separate from the spouse, and who maintains a household for a qualifying child. (Ch 4-24) Accelerated Death Benefits -ANSWER Early receipt of life insurance proceeds that are not taxable un certain circumstances, such as the taxpayer is medically certified with an illness that is expected to cause death within 24 months. (Ch 5-28) Accountable Plan -ANSWER An Employer's reimbursement plan under which employees must submit documentation supporting expenses to receive reimbursement and reimbursements are limited to legitimate business expenses. (Ch 5-23)