Partnership Allocations
Cost Segregation
Activity Grouping
Partner Compensation
Home Office Deduction
100
You can't get here by boat. The name of allocations that are drafted so that the partners’ capital accounts would achieve the desired economic result.
What are Safe Harbor Allocations?
100
Related to cost segregation - HVAC, plumbing, and electrical systems are commonly referred to as what?
What are Building Systems?
100
Who you callin' LAZY? This involves the conduct of any trade or business in which the taxpayer does not materially participate.
What is a Passive Activity Loss (PAL)?
100
Watch out for the green jello... This is a separate written plan maintained by an employer for employees that meets the specific requirements and regulations of section 125 of the Internal Revenue Code
What is a cafeteria plan?
100
This will not give you a complex. The method in which a taxpayer multiplies the total square footage of the business portion of the residence by $5.
What is the Simplified Method?
200
We'll "SEE" if you have this answer... In order for allocations to be accepted under the Internal Revenue Code, they must have this.
What is Substantial Economic Effect?
200
These items are not considered depreciable as parts of a building.
What is Sec. 1245 property (personal property)?
200
I don't have time for this... Income and losses from a business are considered nonpassive if the sum of the taxpayer's time in all significant participation activities totals at least _____ for the year.
What is 500 hours?
200
It costs HOW much? This IRC section requires taxpayers to capitalize all direct costs and allocable share of indirect costs to the cost of inventory and property the taxpayer produced.
What is IRC Sec. 263A?
200
See, owning your own home IS a good investment. In the actual cost method, these two Tier 1 deductions can also be claimed on Sch.A as itemized deductions.
What is Mortgage Interest and Real Estate Taxes?
300
Hope you brought your swimsuit! The order in which cash is distributed to the partners.
What is a Distribution Waterfall?
300
Belly up to the BAR. Costs incurred to significantly improve an asset is said to only be labeled as an improvement cost if it passes the BAR test. The “R” in BAR test stands for this.
What is Restoration?
300
Okay, just let me know... A taxpayer who wishes to group multiple passive business activities notifies the IRS of the election by:
What is attaching an election statement to the income tax return?
300
Get out your scale... This is satisfied if the weight of the authorities supporting the position is substantial in relation to the weight of authorities supporting a contrary position.
What is substantial authority?
300
Professional bowlers should not do taxes. The maximum square feet allowed for safe harbor home business deduction in the simplified method.
What is 300 square feet?
400
Make sure your NRA dues are paid up. The current method used to arrive at partner capital account balances following partners' distribution waterfall.
What are Targeted Allocations?
400
All costs/components related to an asset that can be capitalized to that asset on the books and are depreciated as a single asset create this.
What is a Unit of Property (UOP)?
400
It's important to stay fit... This is a term applied especially to rental real estate activities in determining passive activity loss.
What is "active participation"?
400
It wasn't me! Members should not recommend a tax position unless that position satisfies applicable reporting and disclosure standards.
What is AICPA Statement on Standards for Tax Services (SSTS) No. 1?
400
Can we please define our relationship? The description of a space that is never used for a non-business purpose and is regularly used for meeting with clients or performing business activity.
What is exclusive business space?
500
Wow, another big accounting merger... The colloquial name for the 3 strict requirements that must be satisfied to pass the Basic Test.
What is the Big Three?
500
During a taxable exchange (sale), Sec. 1245 property may be subject to a higher tax rate than that of the Sec. 1250 (real) property depreciation recapture rate of _____.
What is 25%?
500
You thought the CPA exam was hard... The 7 tests for material participation under IRC Sec. 469(h). (or at least name 3)
What is the 500+ hours test, substantially all participation test, equal participation test, aggregated participation test, five-out-of-ten years participation test, three year personal service activity test, all facts and circumstances test?
500
I've got the tab... This IRC Section excludes meals/lodging provided for the convenience of the employer from gross income.
What is IRC Section 119?
500
Anyone born in Canada 34 years ago? This Internal Revenue Code section permits business expenses relating to business use of home.
What is Section 280A?
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