Exam_1_Study_Sheet - 2 Disallowance Possibilities –...

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TAX 4001 2011/2012 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 Definition of Gross Income Accounting Methods (Cash/Accrual/Hybrid) Constructive Receipt Prepaid Income Who is Income Taxed to (i.e. property owner, provider of service, etc.) Municipal Bond Interest Below-Market Rate Loans (Concepts vs. Mechanics) Life Insurance Proceeds Tax Benefit Rule Income From Discharge of Indebtedness Capital Gains/Losses- capital loss limitations and carryover rules, special rates for LTCG’s for individuals CHAPTER FIVE 1) Ordinary, Necessary and Reasonable Requirements for expense deduction
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Unformatted text preview: 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 (no add’l 1 st year depreciation) 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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This note was uploaded on 09/16/2011 for the course TAX 4001 taught by Professor Hampton,m during the Fall '08 term at University of Central Florida.

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