Business Law
This type of business organization provides limited liability or its owners but is taxed like a partnership.
What is an LLC?
This governing body publishes the Code of Professional Conduct for CPAs.
What is the AICPA?
These two options exist for reducing taxable income, but taxpayers can only choose one.
What are the standard deduction and itemized deductions?
This type of corporation is subject to double taxation.
What is a C Corporation?
The starting point for calculating gain or loss on a sale of property is called this.
What is Basis?
A contract requires these three elements to be enforceable.
What are offer, acceptance, and consideration?
A CPA who knowingly understates a client's tax liability may face this consequence from the IRS.
What are preparer penalties?
A parent with a qualifying child may claim this credit to reduce their tax liability.
What is the Child Tax Credit?
These entities pass income, deductions, and credits directly to their owners' personal tax returns.
When you sell an investment for more than you paid, the difference is called this.
What is capital gain?
This act protects debtors by providing them relief from creditors through liquidation or reorganization.
What is bankruptcy?
What is objectivity?
Wages, Interest, and Business Income are considered this type of income.
What is gross income?
Partners receive these payments for services rendered, which are deductible to the partnership and taxable to the partner.
What are guaranteed payments?
This tax rule allows taxpayers to postpone recognizing gain when swapping similar real estate.
What is a like-kind exchange (Section 1031)?
In an agency relationshop, the person who authorized another to act on another to act on their behalf is called this.
Who is the principal?
This rule prohibits CPAs from disclosing client tax information without consent.
What is confidentiality?
If a taxpayer sells their home, up to $250,000 ($500,000 for married filing jointly) of gain may be excluded from tax if they meet this test.
What is the 2-out-of-5-year ownership and use test?
An S Corporation shareholder's loss deduction is limited to these 3 things.
What are stock basis, debt basis, and at-risk amount?
Depreciation on real property (like buildings) is typically taken over this number of years.
What is 27.5 years for residential and 39 years for non-residential property?
Under the Uniform Commercial Code (UCC), Article 2 governs these types of transactions.
What are the sale of goods?
This standard requires CPAs to act in the best interest of their clients while still maintaining integrity and objectivity.
What is due diligence?
Contributions to this type of retirement plan are tax-deductible, but withdrawals in retirement are taxable.
What is a Traditional IRA?
Trusts and estates are required to file this IRS form to report income.
What is Form 1041?
If the property is gifted, the recipient generally takes this type of basis in the property.
What is the donor's carryover basis?