User talk:Avnair

What is ATNOLD stands for?

AMTI = $ 222,500, Calculate AMT liability.

Capital losses can be carried back to _______ years and carried forward to ________ Years.

. Capital losses of corporate tax payer may be utilized to offset ordinary income. 2. S Corporation may not carry a capital loss a.     Statement 1 is true and 2 are false. b.     Statement 1 is false and 2 are true. c.      Both are false. d.     Both are true.

What is DRD? What are the conditions needs to be satisfied to get the DRD?

Corporations must file its return by ___________________ following close of tax year.

Which form do you use to get “quick refund“for corporations?

What do you mean by depreciation Recapture? Explain types of recapture under different sections.

What is “Look Back rule”?

What is ACE stands for? Give one example for “Disallowance of items non deductible from E&P”?

Small Corporations should file AMT.

8) What are the four types of documents used for ISO documents? 1)     The benefit of NOL deduction is allowed to the partnership. (1 mark) a) TRUE                     b) FALSE 2) Kevin, whose basis for his partnership interest is $ 100,000 retires from the partnership, receiving $ 50,000 in cash and inventory items having a basis to the partnership of $ 30,000. Calculate Kevin’s capital loss.                                   (1 mark)                                                $ 20,000   3)  Paul & Mary are general partners operating a retail store as a general partnership. The partnership has outstanding invoices to its vendors for $ 10,000. For what amount are Paul & Mary liable? (1 mark) Entire $10,000 4) On March 8, 2006, Karen contributes land worth $ 50,000 in exchange for a capital and profits interest in XYZ partnership. Prior to contributing the land, Karen held it as an investment. Her basis in the land is $ 130,000, which becomes XYZ’s basis in the land and Karen’s adjusted basis in XYZ. The land is Sec 1231 property in the hands of XYZ. XYZ sells the land for $ 30,000 within 5 years of possession (March 8, 2006). How will you treat the loss?                                                                                              (2 marks)                                    Capital loss $ 80,000 and Sec 1231 loss - $ 20,000   5) Tara Corporation with a short tax year beginning March 15 and ending on Dec 31, placed in service on March 16 an item of 5 year property with a basis of $ 100. This is the only property the corporation placed in service during the short tax year. The depreciation method for the property is 200% DB method. The property is treated as placed in service on August 1. Compute the short tax year depreciation                               (2 marks) Short tax year depn = $100*1/5*2*5/12  = $ 17 6) Winston Co. (a calendar year partnership) owns and operates a restaurant. During 2006, Winston places in service a cash register costing $ 5,000 and office furniture costing $ 6,000. Both qualify as Section 179 property. Winston elects under Sec 179 to expense the full $ 11,000 cost of both items. For 2006, Winston’s taxable income (before any Sec 179 deduction) derived from the active conduct of its restaurant business is $6,000. What amount can Winston pass through to its partners in 2006?             (1 mark)                        $ 6,000. He can pass through only $6,000. 7)      Given below is the information of disposals of partnership firm ABC. Please compute Book gain/loss, Tax gain/loss & M-1 resulting out these computations. (3marks) Assets	Date placed in service	Date of sold	Proceeds	Cost	Book A/c Dep	Tax A/c Dep Machine	1/1/2005	1/2/2006	36000	50000	6000	13268 Truck	1/1/2005	6/15/2006	127300	150000	43750	54000 Book Gain	13050 Tax Gain	30568 M-1 adjustment'	17518 8)      XYZ Partnership follows calendar year and placed a qualified 7 year property for the service on 1st Jan 2007 of $560,000.00. The Partnership would like to take section 179 deduction. Compute the sec 179 deduction and regular depreciation deduction for the year 2007.                                                          ( 2 Marks) Cost                                                     $ 560,000 179 Deduction                          ($65,000)                        Basis for Regular Tax                            $ 495,000 Recovery Period – 7 years, Convention – Half Year, Method – 200% DB Current Year Depn - $ 70,714 9) What purpose does the Process Manual in ISO document serve? Answer in brief. (1 mark) See the subject matter and award marks accordingly. 10) What is maximum amount that can be deducted and what is threshold cost of sec 179 property before reduction in limitation for the taxable year 2007.   (1 mark) a)      $108,000 & 430,000 b)     $105,000 & 420,000 c)      $125,000 & 500,000 d)     None of the above. 11) Technical Termination of Partnership can be due to                               (1 mark) a.      Discontinuation of Operations b.     Sale or Exchange of at least 50% of total partnership interest c.      Sale or Exchange of at least 55% of total partnership interest d.     All of the above