Regulation Flashcards
7 cards from real AICPA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Regulation flashcards as text
Under the Internal Revenue Code, which entity type is subject to the 21% flat corporate income tax rate established by the Tax Cuts and Jobs Act of 2017?
Answer: C corporation
C corporations are subject to the flat 21% corporate income tax rate enacted by the TCJA; pass-through entities are not subject to this tax at the entity level.
A taxpayer who is both self-employed and an employee may deduct the employer-equivalent portion of self-employment tax as a(n):
Answer: Above-the-line deduction on Schedule 1
The deductible portion (50%) of self-employment tax is an above-the-line adjustment to gross income, reducing AGI without requiring itemization.
Under the Sarbanes-Oxley Act, which of the following is prohibited for a registered public accounting firm providing audit services to a public company?
Answer: Providing bookkeeping services for the audit client
SOX prohibits auditors of public companies from providing bookkeeping or other accounting services that would later be subject to audit, creating a self-review threat.
For federal gift tax purposes, the annual exclusion per donee for 2024 is:
Answer: $18,000
The annual gift tax exclusion for 2024 is $18,000 per donee, allowing donors to give this amount to any number of recipients free of gift tax reporting.
Which type of bankruptcy reorganization allows individuals with regular income to repay debts over a 3- to 5-year plan?
Answer: Chapter 13
Chapter 13 bankruptcy allows wage earners to keep assets and repay all or part of their debts under a court-approved payment plan lasting 3 to 5 years.
A partnership's basis in property contributed by a partner is generally:
Answer: The contributing partner's adjusted basis in the property
Under IRC §723, a partnership takes a carryover basis in contributed property equal to the contributing partner's adjusted basis at the time of contribution.
Which of the following best describes the 'check-the-box' regulations under Treasury Regulation §301.7701?
Answer: Regulations allowing eligible entities to elect their federal tax classification
Check-the-box regulations permit eligible entities (not automatically classified) to elect whether to be taxed as a corporation, partnership, or disregarded entity.