REG - Formula Sheet

http://www.cpa-cfa.org

Qualifying widower –

Head of household –

Qualifying child –

Qualifying relative -

Non-capital assets

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Adjusted basis of asset sold

• Purchased property basis =

- add

- less

• Gift property basis =

- exception:

Donor’s basis -------------------------

Lower FMV at date of gift ----------

Excess
Offset income Carryback Carry forward
Operating losses

Indv capital losses

Corp capital losses

Adjustments –

1.

2.
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- Exception:

3.

4.

5.

6.

7.

8.

9.

10.

Deductions from AGI –

Itemized deductions limitation –

• Itemized deductions that are not subject to limitation include:

Interest Expense –
•

-
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 REG - Formula Sheet
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Charitable contributions

Casualty and theft losses Deductible loss formula

Miscellaneous itemized deductions –

Alternative minimum tax formula

Adjustments -

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Itemized deductions –

Tax preference items -

% Ownership Div Rec Deduction (DRD)

• Take smaller of:

MACRS depreciation rules for machinery and equipment

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MACRS: real estate (buildings)

Distributable net income (DNI) formula

To be an offer terms must be definite and certain

Party can establish the defense of fraud if they party can prove:

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Statue of frauds – 6 contract types require the defendant to sign (person being sued) in order to be enforceable:

___________

- Exception:

To qualify as a merchants firm offer:

Express warranties –

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Implied warranty of title –

Implied warranty of merchantability –

Implied warranty of fitness for particular purpose –

To be a negotiable instrument, the instrument must:

A holder will take commercial paper in due course to the extent that he takes the paper with all these:

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Perfection of the security interest (_______________ vs. ____________________)

Perfection of a security interest cannot be completed until it has been attached (but can occur at the same time)
There are 5 methods of perfection:

1.

2.

3.

4.

5.

The priority ranking between creditors and debtors is:

1.

2.

3.

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4.

5.

Required items of a valid mortgage:

Chapter 7 _________________ –

Chapter 11 ________________ –

Chapter 13 ______________________________________________________________ –

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 REG - Formula Sheet
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Recoverable amount =

In an exchange, if 1 person receives boot, then recognize the_________________ of:

If a corporation distributes assets, the corp recognizes a gain _____________ of: Pg 10 Reg 3

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