Assignment
Part 1
At risk rules:
1. what is limitations?
2. what businesses and/or investments does this limitation cover?
Passive activities:
1. what 2 types of activities are generally considered passive?
2. list 3 things a taxpayer can do with passive losses?
Rental expenses:
1. when can taxpayer deduct rent paid in advance?
2. how does the taxpayer deduct leasehold improvements?
Part 2
What is the basis of property received by gift ad sold at a gain? (2words)
What is the basis of property received by gift and sold at a loss? ( 1 sentence)
What is the general primary rule for the basis of property received by inheritance? ( 1 phrase)
What is the basis of property received in exchange for services? ( 1 sentence)
What is the basis of property received in a like-kind exchange? ( 1 sentence)
What two factors would require taxpayer to recognize taxable gain in a qualified sec.1031 like-kind exchange? ( 2 words _____ and _____)
Your client sells his house. List factors that affect the taxability of the transaction?
Part 3
Define capital assets?
Why are the netting rules important ?
How are net gains on the sale of capital assets taxed ?
How are net losses on the sales of capital assets taxed?
What is section 1231 property?
What is the general rule on how net 1231 gains are taxed (1 phrase)
What is the general rule of the look back rules on 1231 transactions?
Define sec.1245 property. ( 1 sentence)
What is the significance of the 1245 rules? ( 1 sentence)
Part 4
Defile NOL?
When may individual taxpayers deduct NOLs?
Define alternative minimum tax?
List 5 possible adjustments?
Part 5
In one word, what factor is used to distinguish between employee and independent contractor status?
Which answer does the government generally want and why?
When are the estimated tax payments due? ( list dates only)
What are the estimated tax rules for farmers?