Wgu c239 advanced tax - Study guides, Class notes & Summaries

WGU C239 Advanced Tax Practice Test | 50 Questions with 100% Correct Answers | Verified | Latest Update

WGU C239 Advanced Tax Concepts Study Set | Questions with 100% Correct Answers | Verified | Latest Update AAA bypass election - In the context of a distribution by an S corporation, an election made by the entity to designate that the distribution is first from accumulated earnings and profits (AEP) and only then from the accumulated adjustments account (AAA). § 1368(e)(3). accelerated cost recovery system (ACRS) - A method in which the cost of tangible property is recovered (depreciate...

QUESTIONS AND ANSWERS

1. Why would a taxpayer need to include IRS Form 8332, Release/Revocation of Claim to Exemption of Child by Custodial Parent, in their personal income tax return? A. To allow a noncustodial ex-spouse permission to take the child's dependency exemption, or to revoke same. B. To disallow an ex-spouse permission from taking child's dependency exemption because they only provided 10% of child's support. C. To disallow an ex-spouse permission from taking child's dependency exemption because t...

WGU C239 Advanced Tax Concepts Study Set | 100 Questions with 100% Correct Answers | Verified | Latest Update

WGU C239 Advanced Tax Practice Test | 50 Questions with 100% Correct Answers | Verified | Latest Update 1. Why would a taxpayer need to include IRS Form 8332, Release/Revocation of Claim to Exemption of Child by Custodial Parent, in their personal income tax return? A. To allow a noncustodial ex-spouse permission to take the child's dependency exemption, or to revoke same. B. To disallow an ex-spouse permission from taking child's dependency exemption because they only provided 10% of ch...

WGU C239 Advanced Tax Practice Exam | 50 Questions with 100% Correct Answers | Verified | Latest Update Catamount Company had current and accumulated E&P of $500,000 at December 31, 20X3. On December 31, the company made a distribution of land to its sole shareholder, Caroline West. The land's fair market value was $200,000 and its tax and E&P basis to Catamount was $250,000. The tax consequences of the distribution to Catamount in 20X3 would be: A) No loss recognized and a reduction in E&P...

QUESTIONS AND ANSWERS

Sec. 351 - ANSWER-Transferor recognizes no gain/loss (deferred until sale or exchange) when they transfer property to a corporation solely in exchange for stock if they are in control immediately after transfer Sec. 351 Property - ANSWER-Cash & almost any other assets (AR, Inventory, Equipment) Sec. 351 Property Exclusions - ANSWER-Services exchanged for stock, indebtness not evidenced by security, interest accrued after holding period Sole Proprietorship Advantages - ANSWER-No entity t...