REG – CPA Exam Review (Becker) Complete Study Notes and Practice Questions
Disclosure |of |taxpayer |information |to |other |is |permissible |under |3 |ways: |- |answers1. |computer |
processing |2. |peer |review |process |3. |Through |an |administrative |order.
Itemized |deductions |not |limited |to |limitation: |GIMIC |- |answersGambling |losses |(to |the |extent |of |
gambling |winnings) |2. |Investment |Interest |expense |3. |Medical |Expenses |4. |Casualt |Losses |(non-
business)
non-deductible |taxes |- |answersFederal |Income |Taxes |2. |Inheritance |tax |3. |Business |Taxes |(deductible |
on |Sch. |E)
Altertrnative |Minimum |Tax: |Adjustments |(+/-) |PANIC |TIME |- |answersPassive |activity |Losses, |Acc. |Dep.,
|NOL's, |Installment |Income |of |a |Dealer, |Contracts |(% |complet |vs. |completed) |Tax |deductions, |Mtg. |
Interest |not |used |4 |house, |Medical(limited |to |10% |of |AGI) |Misc. |deductions |are |NOT |allowed, |
Exemptions |(personal) |and |standard |deduction
Tax |Preferences |- |answersAlways |ADD |BACK |PPP |Private |activity |bond |interest |income |Percentage |
depletion |the |excess |over |adj. |basis |of |property, |pre- |1987 |acceleateraed |depreciation
Organizational |& |Start-up |expenses |- |answersTax: |5000 |expense |maximum |remainder |amortized |over |
180 |months |GAAP- |expensed |when |incurred
Capital |Losses |for |corportations |- |answersCorps |can |only |use |to |offset |Cap |gains. |Carryback/over= |3/5
|applied |only |to |cap |gains. |carryback/forwards |are |always |treated |as |a |S/T |Cap. |LOSS
NOL |for |Corps |- |answerscarryback/forward= |2/20 |No |Charitable |contribution |deduction |or |DRD |
allowed |before |calculatiting |a |NOL
Rule |504 |under |1933: |- |answers1. |Exempts |issuance |up |to |$1 |million |2. |General |solicittion |is |ok |3. |
must |be |sold |w/in |12 |mnths |4. |sold |to |any |# |of |investors |(seed |capital) |5. |resell |is |ok
Rule |506 |under |1933: |- |answers1. |Private |placement |of |unlimited |dollar |amount |2. |35 |non-accredited |
sales |to |unlimited |accredited
Rule |505 |under |1933: |- |answers1. |Exempts |issuances |of |up |t
Punitive |Damages |- |answersintended |to |reform |or |deter |the |defendant |and |others |from |engaging |in |
conduct |similar |to |that |which |formed |the |basis |of |the |lawsuit. |Although |the |purpose |of |punitive |
damages |is |not |to |compensate |the |plaintiff, |the |plaintiff |will |in |fact |receive |all |or |some |portion |of |the
|punitive |damage |award. |Not |available |UCC.
suing |for |NEGLIGENCE- |MUST |PROVE |4 |THINGS: |DBCI |- |answersdUTY |OF |CARE, |BREACH |(Lack |of |Due |
Care), |CASUALITY |AND |INJURY
Prefrential |Transfer |- |answersThe |transfor |of |debtors |property |made |fro |the |benefit |of |a |creditor |on |
account |of |an |antecedent |debt |while |the |debtor |was |insolvent. |1 |yr |for |an |insider |and |90 |days |for |
others.
Disclosure |of |taxpayer |information |to |other |is |permissible |under |3 |ways: |- |answers1. |computer |
processing |2. |peer |review |process |3. |Through |an |administrative |order.
Itemized |deductions |not |limited |to |limitation: |GIMIC |- |answersGambling |losses |(to |the |extent |of |
gambling |winnings) |2. |Investment |Interest |expense |3. |Medical |Expenses |4. |Casualt |Losses |(non-
business)
non-deductible |taxes |- |answersFederal |Income |Taxes |2. |Inheritance |tax |3. |Business |Taxes |(deductible |
on |Sch. |E)
Altertrnative |Minimum |Tax: |Adjustments |(+/-) |PANIC |TIME |- |answersPassive |activity |Losses, |Acc. |Dep.,
|NOL's, |Installment |Income |of |a |Dealer, |Contracts |(% |complet |vs. |completed) |Tax |deductions, |Mtg. |
Interest |not |used |4 |house, |Medical(limited |to |10% |of |AGI) |Misc. |deductions |are |NOT |allowed, |
Exemptions |(personal) |and |standard |deduction
Tax |Preferences |- |answersAlways |ADD |BACK |PPP |Private |activity |bond |interest |income |Percentage |
depletion |the |excess |over |adj. |basis |of |property, |pre- |1987 |acceleateraed |depreciation
Organizational |& |Start-up |expenses |- |answersTax: |5000 |expense |maximum |remainder |amortized |over |
180 |months |GAAP- |expensed |when |incurred
Capital |Losses |for |corportations |- |answersCorps |can |only |use |to |offset |Cap |gains. |Carryback/over= |3/5
|applied |only |to |cap |gains. |carryback/forwards |are |always |treated |as |a |S/T |Cap. |LOSS
NOL |for |Corps |- |answerscarryback/forward= |2/20 |No |Charitable |contribution |deduction |or |DRD |
allowed |before |calculatiting |a |NOL
Rule |504 |under |1933: |- |answers1. |Exempts |issuance |up |to |$1 |million |2. |General |solicittion |is |ok |3. |
must |be |sold |w/in |12 |mnths |4. |sold |to |any |# |of |investors |(seed |capital) |5. |resell |is |ok
Rule |506 |under |1933: |- |answers1. |Private |placement |of |unlimited |dollar |amount |2. |35 |non-accredited |
sales |to |unlimited |accredited
Rule |505 |under |1933: |- |answers1. |Exempts |issuances |of |up |t
Punitive |Damages |- |answersintended |to |reform |or |deter |the |defendant |and |others |from |engaging |in |
conduct |similar |to |that |which |formed |the |basis |of |the |lawsuit. |Although |the |purpose |of |punitive |
damages |is |not |to |compensate |the |plaintiff, |the |plaintiff |will |in |fact |receive |all |or |some |portion |of |the
|punitive |damage |award. |Not |available |UCC.
suing |for |NEGLIGENCE- |MUST |PROVE |4 |THINGS: |DBCI |- |answersdUTY |OF |CARE, |BREACH |(Lack |of |Due |
Care), |CASUALITY |AND |INJURY
Prefrential |Transfer |- |answersThe |transfor |of |debtors |property |made |fro |the |benefit |of |a |creditor |on |
account |of |an |antecedent |debt |while |the |debtor |was |insolvent. |1 |yr |for |an |insider |and |90 |days |for |
others.
