REG CPA Exam
501(c)(1) organization - ✔✔created by an act of congress
ex. federal credit unions
501(c)(2) organization - ✔✔formed for exclusive purposes to hold property, collect income from
property, and turn over NI to exempt org.
501(c)(3) organization - ✔✔charities
A resulting trust may arise where - ✔✔an express trust has been created gratuitously and it fails
(I) because it is impossible to carry out.
Also, the fulfillment of a trust purpose (III) could result in the creation of a resulting trust if trust
property still remained
After an s- corp terminates, when can they re-elect s-corp status? - ✔✔fifth year from current tax year
best defense against negligence - ✔✔duty of care
business interest expense deduction - ✔✔30% of business income
cannot be disclaimed with "as is" or "with all faults" - ✔✔implied warranty of title
Ch. 11 - ✔✔debt reorganization
no trustee
Ch. 13 - ✔✔adjustments of debts
repay over 3-5yr period
has trustee
, Ch. 7 - ✔✔provides liquidation of debtors estate
pays off creditors to extent of proceeds
trustee
Ch. 7 entity - ✔✔dissolved
Ch. 7 individual - ✔✔debts discharged
Ch. 9 - ✔✔municipal debt adjustment
complex trust - ✔✔may accumulate current income
may distribute principle
$100 exemption
can deduct cc
corporation penalty aiding and abetting - ✔✔10,000
corporations cc rule - ✔✔10% agi
debts that wont be discharged (FAT WEFD) - ✔✔debt incurred by fraud
alimony and child support
taxes due within 3yrs of filing
willful and malicious injury
educational loans
fines and penalties
debts undisclosed in bankruptcy
deductions to arrive at AGI - ✔✔-MSA/HSA Contributions
501(c)(1) organization - ✔✔created by an act of congress
ex. federal credit unions
501(c)(2) organization - ✔✔formed for exclusive purposes to hold property, collect income from
property, and turn over NI to exempt org.
501(c)(3) organization - ✔✔charities
A resulting trust may arise where - ✔✔an express trust has been created gratuitously and it fails
(I) because it is impossible to carry out.
Also, the fulfillment of a trust purpose (III) could result in the creation of a resulting trust if trust
property still remained
After an s- corp terminates, when can they re-elect s-corp status? - ✔✔fifth year from current tax year
best defense against negligence - ✔✔duty of care
business interest expense deduction - ✔✔30% of business income
cannot be disclaimed with "as is" or "with all faults" - ✔✔implied warranty of title
Ch. 11 - ✔✔debt reorganization
no trustee
Ch. 13 - ✔✔adjustments of debts
repay over 3-5yr period
has trustee
, Ch. 7 - ✔✔provides liquidation of debtors estate
pays off creditors to extent of proceeds
trustee
Ch. 7 entity - ✔✔dissolved
Ch. 7 individual - ✔✔debts discharged
Ch. 9 - ✔✔municipal debt adjustment
complex trust - ✔✔may accumulate current income
may distribute principle
$100 exemption
can deduct cc
corporation penalty aiding and abetting - ✔✔10,000
corporations cc rule - ✔✔10% agi
debts that wont be discharged (FAT WEFD) - ✔✔debt incurred by fraud
alimony and child support
taxes due within 3yrs of filing
willful and malicious injury
educational loans
fines and penalties
debts undisclosed in bankruptcy
deductions to arrive at AGI - ✔✔-MSA/HSA Contributions
