GVen
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Joined: 13 Apr 2011
Location: United States
Online Status: Offline
Posts: 71
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| Posted: 27 Feb 2012 at 10:26 | IP Logged
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Here are the "bromides" that I'm walking in with. I hope to immediately write them on my scratch sheet of paper! These are stream of conscious and my not all be right but hopefully it jogs some memories:
DRD - <20% is 70%, else <80% is 80%, else <100% is 100%; must hold for >=45 days
Qual Relative: SUPORT mnemonic; for eligible medical deductions use SPORT (exclude req that income s/b <= ~$3700)
CARES: related, 19 or 24 w/ college, , more than half of support
AMT: PANIC TIME: No Passive, adjust Depr. Install method goes to % collection, Medical floor at 10% not 7.5%, No taxes deductible, Interest on non-acquisition loans not deductible, no 2% "misc" exemptions allowed
S Corp/ C Corp: Articles of Incorp; LP, LLC, LLP: file w/ state as well (articles of Org, etc.). Partners / GP's don't need to file.
Liabs contributed to a partnership increase basis (recourse loans and personal liability on some level); Liabs contributed to a corporation do not. If Liabs contrib'd exceed the NBV, then on partner's books Dr. Invt. at $0, Dr. Liability, Cr. NBV, Cr. Gain for plug.
Partnership books would take property contrib'd at NBV + the partner's prior gain; if it sold that property the partner would first recognize their built in gain to orig FMV (cap gain) before parsing out the rest of the gain.
Contrib'd pprty to partnership w/ liabs: basis is NBV less % liabs assumed by other partners
UCC is for all things except RISE (real estate, Insurance, Services, Employmt) which is governed by UCC. MYLEGS must be contracts in writing, except for SWAP (specialty, performed substantially, written confirmation). Common Law requires consideration for modification, UCC does not. UCC does not need price (i.e. an output contract), but common law does.
Real defenses to HDC's are FFAAIIDDSS: Fraud execution, forgery, Alteration or Adjudic Insane, Infancy, Discharge, Statute of Limits or Surety
MAIDS are for statute of frauds: Material Misstate, Intent to Deceive, Damages, Scienter. Construc Fraud is w/o Scienter but with a Gross Neglect.
PMSI: w/in 30 days of lending cash for purchasing or selling inventory on credit. If someone moves collateral out of state you have 4 mos to file there.
HIDE IT for income not taxable (homeowners, muni int, treasury transacs, etc.) WRAP for losses on deductible (wash sale, rel parties, passive losses w/ no gains)
Inherited property: xfer at FMV either @ death or ALVD. Can file estate thing at anytime.
Gift property: (tricky): remember if FV of gift > NBV, always take NBV. If FV of gift < NBV, minimize capital loss or capital gain by using whichever is closer to the final sale price. If sale px b/n nbv and the (lower) fmv, $0 gain.
Related Party losses are disallowed, but subsequent gains by recipient are allowed. Note that the basis for the recipient's sale works a little like donor basis: if the first sale was at FMV<NBV, and subsequent sale is a gain > FMV, then FMV is basis. If subsequent sale is loss < NBV, then NBV is basis. If sale px is in between, then NO Gain or Loss.
Business gifts capped at $25; true gifts at $13K / recipient (makes you kind of wonder!)
Sec 1231 / 1245 / 1250: this is all a way for the IRS to force you to minimize your cap gains on business PP&E and maximize ordinary gains (since you took depr as an ordinary expense on prior corporate returns). If a loss, treat these assets used for business as an ordinary loss. If a gain, then treat as ordinary income either depreciation to date (personal 1245) or the excess of MACRS over SL for Real 1250 (since total bldg depreciation would be too punitive) and use this as ord gain. for amount of recognized gain that exceeds this, first net it against the other ordinary losses (the sec 1231), any gain that remains is capital.
Rental income, Oil & gas are on Sched E ("oil has Vitamin E in it")
Form 1065 has sched K for partnership and K-1 for partners; the K deducts guaranteed payments while partners recognize it as income.
Liq Divs of Corp are at FMV; Liq Divs of partnership also at FMV but w/ cash and ppty, first reduce basis by cash, then zero out account or recognize gain to get investment in ppty back to at least zero.
If partner formation does not have >=80% of partners with non-services contribution, then need to recognize share of each other's liabiities in basis (net received adds to basis). Services contribution for partnership is in ordinary income.
Keogh = 20% x (Self empl inc + 1/2 of tax)
Reg D 504/505/506: Ads are discouraged/no/no; SEC #days is 15/15/15. $ amt is $1M/$5M/Unlim. investors are unlim/35 accred/35 unaccred sophisticated and 200 accred; time limit is 1 yr/1 yr/unlim.
Reg A is offering memo for <$5M
Accrual basis required for avg $5M over 3 years
Bankruptcy: 7,11 are voluntary or invol; trustees may be appointed in 7 or 9; order is Secured, SAGWEGCTI, then unsecured. Trustees for 7 or 13 (individ). 11 is reorg. need 2/3 of unsecured to approve reorg plan
"7-up is a liquid" = ch 7 is liquidation.
"He's an Unlucky 13" = 13 is individual.
Antecedent debt is 90 days or 1 year pre-bankruptcy for insider loan
May claw back 180 DII (divorce settlemt, inheritance, insr proceeds) for creditor settlement.
__________________
FAR 8/2011: 86
AUD 11/2011: 93
Reg 2/2012: 71, 7/1/2012: 89
BEC 10/2012: TBD
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