REG CPA Exam Questions and Answers
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S Corp recognition - ✔✔an election made by the April 15/15th day of the
3rd month of the taxable year us retroactively effective on the first day of
the taxable year.
S Corp requirements - ✔✔- must have only one class of stock
- can be individual, estate, various types of trusts
S Corp separately stated items - ✔✔- flows through to partner appears on
Sch. K
- ordinary income
- rental income
- portfolio income - interest, divs, royalties, cap. G/L
- tax -exempt interest
- percentage depletion
- foreign income tax
- Sec 1231 gains
- char. contr.
, - Sec. 179 - exp. for recovery property
- unrecaptured section 1250 income
-G/L from sale of collectibles
Basis on distributed property - ✔✔- basis of distributed property cannot
exceed the basis of the partner's entire interest after deducting cash
- basis in distributed property is the lesser of the adjust basis of the
property or the remaining basis
-no gain or loss is recognized when receiving distributed property.
partnership interest calculation - ✔✔= partner's capital + partner's share in
recourse and non-recourse liabilities.
Section 444 - ✔✔- permits a partnership to elect a tax year from the
required tax year if the deferral period is 3 months or less.
- i.e. the number
C Corp tax effect of SH for services contributed? - ✔✔FMV is fully taxable
C Corp tax effect of SH for land contributed - ✔✔No gan or loss recognized
if property is exchanged for 80% control (all together) IF not boot is rec'd
EXCEPTION:
1) Boot is rec'd = gain
100% Solved Guaranteed Success
S Corp recognition - ✔✔an election made by the April 15/15th day of the
3rd month of the taxable year us retroactively effective on the first day of
the taxable year.
S Corp requirements - ✔✔- must have only one class of stock
- can be individual, estate, various types of trusts
S Corp separately stated items - ✔✔- flows through to partner appears on
Sch. K
- ordinary income
- rental income
- portfolio income - interest, divs, royalties, cap. G/L
- tax -exempt interest
- percentage depletion
- foreign income tax
- Sec 1231 gains
- char. contr.
, - Sec. 179 - exp. for recovery property
- unrecaptured section 1250 income
-G/L from sale of collectibles
Basis on distributed property - ✔✔- basis of distributed property cannot
exceed the basis of the partner's entire interest after deducting cash
- basis in distributed property is the lesser of the adjust basis of the
property or the remaining basis
-no gain or loss is recognized when receiving distributed property.
partnership interest calculation - ✔✔= partner's capital + partner's share in
recourse and non-recourse liabilities.
Section 444 - ✔✔- permits a partnership to elect a tax year from the
required tax year if the deferral period is 3 months or less.
- i.e. the number
C Corp tax effect of SH for services contributed? - ✔✔FMV is fully taxable
C Corp tax effect of SH for land contributed - ✔✔No gan or loss recognized
if property is exchanged for 80% control (all together) IF not boot is rec'd
EXCEPTION:
1) Boot is rec'd = gain
