reg 9 10 a 2152021

Loss realized on sale or exchange of property to a related person is ----------------------------.

An --------------------------------- is a disposition of property in which at least one payment is to be received after the close of the tax year of the disposition.

The ----------------------------- must be used to report installment sales unless election is made not to apply the method.

When property is converted involuntarily into nonqualified proceeds and qualified property is purchased within the replacement period, an election may be made to ----------------------.

A taxpayer may exclude up to ------------------------------------------------ of realized gain on the sale of a principal residence.

The gain on the sale of the residence must be prorated between -------------- and --------- use

Qualified property received in a like-kind exchange has an exchanged basis adjusted for ------ and------ recognized.

A taxpayer may elect --------------------------- on an involuntary conversion if qualifying replacement property is acquired within a specified time period.

----------------- provides an exclusion upon the sale of a principal residence. The exclusion may be used only once every ---------.

Like-kind property is alike in ------ or ------------ but not necessarily in grade or quality.

Only real property qualifies for ----------------.

--------------------- property is property held for more than 1 year

Examples of Sec. 1231 property include land, --------------, p----------, --------------------, and involuntarily converted -------------------------.

------------------------ property is all depreciable real property, such as a building or its structural components.

Section 1250 property is all depreciable real property, such as a ------------ or its ------------------------------.

For corporate and noncorporate taxpayers, any gain from the disposition of Sec. 1250 property that is not recaptured as ordinary income will qualify as ------------------- gain.

Neither Sec. 1245 nor Sec. 1250 applies to a ------------------------------.

Gain on the disposition of Sec. 1245 property is ordinary income to the extent of the lesser of ----------------------------------------------------

A corporation is allowed a DRD equal to 50% of dividends received from domestic corporations in which the receiving corporation owns ------------------------------------------------- of the distributing corporation.

The DRD for a 20%-owned corporation is -------.

The charitable contribution deduction for corporations is limited to ----- of the taxable income computed before the charitable contribution deduction, dividends-received deduction, and capital loss carryback.

The charitable contribution deduction for corporations is limited to --------------------------- computed before the charitable contribution deduction, dividends-received deduction, and capital loss carryback.

A corporation does not recognize any gain or loss on the --------------------------------------------------------------------

Items treated differently in computing income per books and taxable income are reported and reconciled on ------------------------.

A net capital loss for the corporation may be carried back 3 years and forward 5 years. A capital loss carried back or forward to other taxable years is treated as a ------------------------------- in each such taxable year.

A net capital loss for the corporation may be carried back ----------- and forward ----------. A capital loss carried back or forward to other taxable years is treated as a short-term capital loss in each such taxable year.

The capitalized costs of certain ---------- intangibles, including goodwill, may be amortized over a 15-year period beginning on the date of acquisition.

The capitalized costs of certain Sec. 197 intangibles, including goodwill, may be amortized over a ----------------------------------------------

A personal services corporation may deduct payments made to owner-employees only in the year in which the

A payment made to the owner-employee is only deductible by the personal services corporation for the ----------------------------------------------------.

Cash distributions to shareholders are included on ------------------------ in the analysis of unappropriated retained earnings per books.

The cash method may be used only by PSCs, S corporations, and C corporations that have average annual gross receipts of not more----------------------------------------------------------------------

Intangible assets, such as acquired goodwill, are amortized for tax purposes over a --------------------------.

A corporation is deemed to make an election to amortize its organizational expenses over at least ------------------- starting with the month in which it begins business.

C corps. are subject to a---------- entity-level flat tax on corporate income.

--------. are subject to a 21% entity-level flat tax on corporate income. In addition, shareholders must include any dividends received from a ------- in their own gross incomes. This results in corporate income being taxed twice, once at the corporate level and once at the shareholder level.

By default, noncorporate entities (e.g., LLCs, LLPs, etc.) with two or more owners are classified as ------------------ for federal tax purposes.

Noncorporate entities with only one owner (e.g., a single-member LLC) are classified as ---------------------------------------------------- are included in the tax return of their owner.

For most noncorporate entities other than trusts, an election can be made under the -------------------------------------------- to change an entity’s status from the default classification (e.g., partnership, disregarded entity) to being taxed as a C corp.

An -------------- is a pass-through entity that is generally not subject to an entity-level income tax. Instead, income, deductions, and credits pass through to shareholders similar to a partnership.

A ---------------------------------------------- principal activity is performing personal services, substantially by employee-owners.

A -------- is required to use a calendar tax year

A ----------------------- tax return is due on or before the 15th day of the 4th month following the close of the tax year (e.g., April 15 for a calendar-year corporation).

A C corporation’s tax return is due on or before the-------------------------------------------------------------------------------------------

The cash method may be used only by PSCs, S corporations, certain farming corporations, and C corporations that have average annual gross receipts of no more than-------------------------------------------------------

Publicly traded partnerships are ineligible for the “check-the-box” regulations and must generally be taxed as ------------------------.

A personal service corporation is generally required to use a ---------------------------

----------------------- of a corporation, similar to individual taxation, is all income from whatever source derived unless specifically excluded.

Proceeds received due to the death of the insured are generally ---------------------- from gross income.

If an employer purchases a policy that covers an employee and is issued after August 17, 2006, the proceeds from the policy are -------------------------------------------------.

Interest or other income from property (including money) in a ---------------------- to satisfy an obligation is income (even if in the hands of a trustee).

The City of Cleveland transferred land worth $250,000 to Monitor Corporation as part of an inducement to locate a new plant in the city. Monitor must recognize gross income as a result of the contribution.

True or False

No gain or loss is recognized by a corporation on the sale or exchange of its own stock, including --------------------.

a corporation may elect to expense up to ------------------------------------ and $------------------------------- in the taxable year in which the business begins.

Events primarily for the benefit of employees (e.g., company picnic, office holiday, etc.) are not subject to the meals and entertainment limitations and are ---------- deductible.

In-house lobbying expenses (e.g., travel expenses incurred for a company representative to offer testimony against proposed legislation) that do not exceed ----------------- However, once total costs exceed -----------------------------------------

The NCL is treated as an ----------- in a carryover tax year.

Corporations file federal returns using ------------.

Reconciliation of income (loss) per books of the corporation with income (loss) per tax is reported on ----------------------

Schedule -------- is required for corporations with total assets of $10 million or more.

Schedule M-3 is required for corporations with total assets of -----------------------------

------------------------------- are timing differences and occur because tax laws require the recognition of certain items of income and expense in different tax years than are required for book purposes.

------------------------------ result from transactions that will not be offset by any corresponding differences in later years.

Reconciliation of income per books of the corporation with income per tax addresses differences, both -------------------------------------------------------, for general financial reporting and tax accounting and is reported on Schedule M-1.