Exam_1_Study_Sheet - CHAPTER FIVE 1) Ordinary, Necessary...

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TAX 4001 Fall 2010 JUDD EXAM 1 STUDY SHEET CHAPTER ONE 1) Basic Tax formula for individuals and corporations – including computation of tax liability 2) Three types of Tax Rate Structures (i.e. progressive, regressive, proportional) 3) Different Types of Taxes – (e.g. examples of progressive, regressive and proportional taxes) 4) Explicit vs. Implicit Taxes 5) Average, Effective and Marginal Tax Rates 6) Objectives of a Tax System (i.e. economic, social, equity and political) CHAPTER FOUR 1) Definition of Gross Income 2) Accounting Methods (Cash/Accrual/Hybrid) 3) Constructive Receipt 4) Prepaid Income 5) Who is Income Taxed to (i.e. property owner, provider of service, etc.) 6) Municipal Bond Interest 7) Below-Market Rate Loans (Concepts vs. Mechanics) 8) Life Insurance Proceeds 9) Tax Benefit Rule 10) Income From Discharge of Indebtedness 11) Capital Gains/Losses- capital loss limitations and carryover rules, special rates for LTCG’s for individuals
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Unformatted text preview: CHAPTER FIVE 1) Ordinary, Necessary and Reasonable Requirements for expense deduction 2) Disallowance Possibilities against public policy, lobbying, executive compensation, etc. 3) Related Party Transactions 4) Business Investigation Expenses, amortization of start-up costs 5) Domestic Production Activities Deduction 6) Charitable Contributions 7) Depreciation MACRS, Sec 179, Luxury Auto Limits 8) Amortization CHAPTER SIX 1) Bad Debt Expense 2) Worthless Securities including Section 1244 3) Casualty Losses 4) Net Operating Loss 5) At-Risk Rules 6) Passive Loss Limitations (definition, loss limitations) 7) Rental Real Estate Exception to Passive Loss Limits NOTE: YOU WILL BE GIVEN THE TAX RATE SCHEDULES, AND THE DEPRECIATION TABLES. AS A REMINDER, YOU ARE ALLOWED TWO 8 1/2" BY 11" PAGE OF NOTES (YOU CAN USE THE BACK AND THE FRONT). YOU NEED A BROWN SCAN-TRON....
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