Vocabulary
Year of Inclusion
Income Sources
Gross Income Items
Potpourri
100
The method under which income and expense are deteremined.
What is the accounting method?
100
Partnerships, S Corporations, and personal services corporations can not generally file period under this option.
What is a fiscal year?
100
This type of income occurs when services are preformed by an employee for an employer.
What is personal service income?
100
The selling price of the property less any costs of disposition incurred by the seller.
What is the amount realized?
100
A doctrine states that if the income is available the taxpayer should not be allowed unilaterally to postpone income recognition.
What is the constructive receipt doctrine?
200
The change in the taxpayer's net worth, as measured in terms of market values, plus the value of the assets the taxpayer consumed during the year
What is the economic income?
200
Cash receipts and disbursements, accrual, and hybrid are the primary types
What are accounting methods?
200
Any income a business gains from rent or dividends.
What is income from property?
200
Recognized gains or losses from disposition of property are included here.
What is the adjusted gross income?
200
This basis taxpayer can apply special rules in regards to prepaid income, deferral of advanced payment for goods, and deferral of advanced payments for services.
Who are accrual basis taxpayers?
300
Income subject to Federal income tax.
What is gross income?
300
When a taxpayer recognized gross income because a check is received
What is the cash receipts method?
300
This is the person who is impacted by the timing of recognition of gross income from things like giving a gift of a corporate bond.
Who is the transferor?
300
The extent to which capital losses can be deducted by a C Corporation.
What are the extent of capital gains?
300
An example would be discharge of qualified real property business indebtedness.
What is reduction in debt exclusions?
400
A provision that limits recognition of income from the recovery of an expense or a loss properly deducted in a prior yetax year to the amount of the deduction that generated a tax savings.
What is the tax benefit rule
400
This is the method where income is earned when all events have occurred that fix the right to receive the income.
What is the accrual method?
400
These dividends are taxed at the same marginal rate that is applicable to a net capital gain.
What are qualified dividends?
400
This allows a partner to purchase the interest in a partnership in the event of another partners death.
What is a buy-sell agreement?
400
Short-term, mid-term, and long-term rates are the three Federal types used to calculate this.
What is imputed interest?
500
A taxpayer attempts to avoid the recognition of income by assigning to another the property that generates the income.
What is the assignment of income
500
Used primarily by small businesses because of its simplicity.
What is the hybrid method?
500
This is the term for for a person who is taxed when they receive a dividend.
What is the shareholder of record?
500
This is treated as a sale or exchange of the property and usually triggers gross income.
What is a foreclosure?
500
Indebtedness that was incurred or assumed by the taxpayer in connection with real property used in a trade or business and is secured by such real property.
What is qualified real property business indebtedness?
M
e
n
u