Weird State Tax Laws
Arkansas levies 6% tax on this type of Body Art
What are tattoos?
The effect on a partner's basis when the partnership borrows money
What is an Increase?
If a company's average gross receipts for the past 3 years exceed this amount, they must apply the UNICAP rules
What is 25 million?
This kind of gain is either offset against losses for the year or included in the computation of taxable income
What is a recognized gain?
This type of tangible asset has an indeterminate life and thus creates no deduction for depreciation
What is Land
In Alaska, this tradition can claim a $10,000 deduction for related expenses. The deduction is considered a charitable contribution, even if the money isn’t paid to a charitable organization.
What is Whaling?
While not used in any regulations, these two terms are used to refer to a partnerships tax basis and the tax basis of a partner’s interest in the partnership, respectively
What is Inside Basis and Outside Basis?
These costs, such as rent, utilities and bidding costs, must be capitalized under UNICAP rules
What are Indirect Costs?
This kind of property received in an exchange may result in a gain recognized, but can never be recognized as a loss
What is Boot?
The TCJA limited deductions on casualty losses to those attributable to this type of casualty
What is a Federally Declared Disaster
In California, fresh fruit is not taxed, unless of course you buy it from this type of “automated bodega”
What are Vending Machines?
As per Section 721 of the IRS Code, the transfer of property to a partnership in exchange for partnership interest falls under this category.
What is a Non-Taxable Transaction?
This indirect cost is normally capitalized, but under a special rule, only when paid or incurred during the production period
What is Interest Expense?
Both properties exchanged in a like-kind exchange must be held for either of these two reasons.
What are business or investment purposes?
Goodwill and a Covenant Not to Compete (also known as a Non-Compete) may be amortized for this amount of time.
What is 15 years
In several states, including Arizona, this is taxed differently depending upon its size. In one form it is considered food and thus not taxed while the larger version is subject to sales tax.
What are Ice blocks and Ice cubes?
or
What is Ice?
Charitable contributions in a Partnership are treated as an itemized deduction and are subject to this.
What are Individual Partner Limitations?
With this inventory method, the taxable income may be lower in years of rising costs but with complex application.
What is Last in First out (LIFO)?
This kind of sale occurs when a taxpayer sells stock or securities at a loss and reinvests in substantially identical stock or securities within 30 days.
What is a Wash Sale?`
While gambling winnings are fully taxable, losses are deductible to this extent, but may not be carried forward.
What is the extent of current year winnings
Hawaii boasts a $3,000 possible deduction for maintaining one of these on your private property. It must be rated “exceptional” by the appropriate county authority and the expenses must be deemed “reasonably necessary” by a certified expert on the subject
What are Trees?
This deduction was included in the TCJA and in general provided a 20% deduction from income. It is only available to partnerships, sole proprietorships and S corporations.
What is Qualified Business Income?
These types of materials and supplies can be exempt from the inventory rules and expensed if they are considered indispensable and inseparable from service provided.
What are incidental materials and supplies?
Any losses resulting from this kind of sale/exchange of property are disallowed but can be used to offset any gain realized from the subsequent disposition of the property.
What is the Related Parties Sale?
While a business-related bad debt is treated as deductible against income, Non-business bad debt is treated as a short-term capital loss and must be considered this.
What is Totally Worthless