Pay Income Tax Individual R2-52 1,000 Corporate R3-32 500 100% 1,000,000 100% Can NOT use

LY's Tax if it is Zero or less than 12 months

Page Minimurm Owned

Current year Tax 90% Threshold AGI / TI 150,000 / 75,000 Last year Tax - under TH 100% Any conditions to use LY's Even if LY's Tax is Zero Tax? Last year Tax - over TH Liquidation Partnership Basis - Cash Received Assets Basis If AB < 0 then, Taxable gain; If AB>0 and No assets at all then LOSS

110% Can NOT use LY's Tax as basis

Corporation FMV of Assets Received - Basis Taxable Income / Loss

No

Tax

Topic

Note The stock must be held for more than 60 days during the 120-day period beginning 60 days before the ex-dividend dates.

Page

Individual

Qualified Dividend Income

R1-22

Corporate

The stock must be held for more than 46 Qualified Dividend Rec. ded. days during the 91-day period beginning 45 days before the ex-dividend dates.

R3-22

Warranty Type Express Implied Implied Implied Type Type Warranty of Title Warranty of Merchantability Warranty of Fitness Warranty liability of endorser By Whom Any seller Any seller Merchant only Any seller Endorser Disclamer Hard to disclaim By specific language "I do not warrant title" By "as it" or "with all faults" or mention "merchantability" By "as it" or "with all faults", must be in written! Can be disclaim by "makes no warranties"

R5-39 R5-39 R5-39 R5-39 R6-21

Phaseout

No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Section Individual Tax Individual Tax Individual Tax Individual Tax Individual Tax Individual Tax Individual Tax Individual Tax Individual Tax Individual Tax Individual Tax Individual Tax Individual Tax Corporate Tax Corporate Tax

Item Passsive losses attributable to rental real estate US Saving Bond- Series EE Student Loan Interest Exp Tuition and Fees duduction Deductible IRA Roth IRA Coverdell IRA Child and dependent care credit Adoption Credit Child tax credit Retirement Saving Contribution credit American Opportunity Credit Lifetime learning credit AMT exemption 179 Depn

Original Amount 25,000 2,500 4,000

Phaseout line AGI over 100,000 AGI over 70,100/105,100 AGI over 60,000/120,000 AGI over 65,000, less 80,000 MAGI > 177,000 and have another plan MAGI > 105,000/167,000 MAGI > 95,000/190,000 AGI over 15,000 MAGI>182,520 MAGI>110,000 (MFJ) AGI>27,750/55,000 MAGI>80,000/160,000 MAGI>50,000/100,000 AMTI in excess of 150,000 Property purchased exceeding 800,000

Phaseout % 50% 1/15,000 or 1/30,000 2,000 Spouse cannot deduct

Completely Eliminated 150,000 85,100/135,100 75,000/150,000 80,000

Page R1-37 R2-11 R2-11 R2-11 R2-7 R2-8 R2-10 R2-35 R2-40 R2-43 R2-41 R2-38 R2-38 R3-37 R3-27

35% 12,170 1,000 2,500 20%*exp 40,000 250,000

1% for each 2000 $50 for each 1,000 25% 25% dollar

AGI>= 43,000, then 20% 222,520 130,000 90,000/180,000 60,000/120,000 310,000 1,050,000

UCC ART 1 2 2A 3 4 4A 5 6 7 8 9 TITLE General Provisions Sales Leases Negotiable Instruments Bank Deposits Funds Transfers Letters of Credit Bulk Transfers and Bulk Sales Warehouse Receipts, Bills of Lading and Other Documents of Title Investment Securities Secured Transactions CONTENTS Definitions, rules of interpretation Sales of goods Leases of goods Promissory notes and drafts (commercial paper) Banks and banking, check collection process Transfers of money between banks Transactions involving letters of credit Auctions and liquidations of assets Storage and bailment of goods Securities and financial assets Transactions secured by security interests

Defense No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Defenses Fraud in the execution Fraud in the inducement Innocent Misrepresentation Duress with physical force Duress with economic or social force Undue influence Mutual mistake Nonexistence of subject matter Unilateral mistake Illegality Minor Intoxication Insanity Insanity after adjudicated insane Statute of limitations Statute of Frauds Impossibility Accord and satisfaction Substituted contract Novation Prevention of performance Parol Evidence Void/Voidable Void Voidable Void Voidable Voidable Void Knowingly in advance Void Voidable Voidable Void 4-6 years, UCC 4 years MYLEGS Concepts MAIDS MAIDS Page R-5-14 R-5-14 R-5-14 R-5-14 R-5-14 R-5-14 R-5-14 R-5-14 R-5-15 R-5-15 R-5-16 R-5-16 R-5-16 R-5-16 R-5-16 R-5-17 R-5-19 R-5-19 R-5-19 R-5-19 R-5-20 R-5-20

Prior and contemporaneous NOT ok, after ok

UCC ART. 1 2 2A 3 4 4A 5 6 7 8 9

uniform commercial code TITLE General Provisions Sales Leases Negotiable Instruments Bank Deposits Funds Transfers Letters of Credit Bulk Transfers and Bulk Sales Warehouse Receipts, Bills of Lading and Other Documents of Title Investment Securities Secured Transactions CONTENTS Definitions, rules of interpretation Sales of goods Leases of goods Promissory notes and drafts (commercial paper) Banks and banking, check collection process Transfers of money between banks Transactions involving letters of credit Auctions and liquidations of assets Storage and bailment of goods Securities and financial assets Transactions secured by security interests

No 1 2

Tax Individual Corporate

Topic Qualified Dividend Income Qualified Dividend Rec. ded.

Note The stock must be held for more than 60 days during the 120-day period beginning 60 days before the ex-dividend dates. The stock must be held for more than 46 days during the 91-day period beginning 45 days before the ex-dividend dates.

Page R1-22 R3-22

Carry Back and Carry Over

No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Tax Individual Coporate Individual Individual Individual Individual Coporate Individual Coporate Individual Coporate Individual Individual Individual Coporate Individual Coporate

Type Business Loss NOL Rental Loss Passive activity loss Gambling loss Capital Loss Capital Loss Investment interest exp Interest exp on loans for investment Charitable Contribution Charitable Contribution Adoption Credit Foreign tax credit General Business Credit General Business Credit AMT credit AMT credit

Deductibility May deduct the loss against other sources of income Chritable contribution is not allowed; div received deduction is allowed Can be deductible only to the extent of rental income Can be deductible only to the extent of income from all passive activities Can be deductible only to the extent of gambling winnings Maximum of 3000 against income, (1500 if married filing separately) LT ST combined ! Can be deductible only to the extent of capital gain, LT ST combined ! The excess investment intrest expense over net investment gain Limited to "net investment income (taxable)". Over 30/50 of AGI Max 10% TI, before Chri Contri, div deduction, NOL carry back, capital loss Carry back Limited to the tax liability, less the tentative AMT, elderly and child care credit. Lesser of foreign taxes paid and the foreign tax credit limit. Greater of 25% regular tax lia and Tentative minimum tax Greater of 25% regular tax lia and Tentative minimum tax Can only reduce regular tax, not future AMT. Can only reduce regular tax, not future AMT.

Back 2 years 2 years N/A N/A N/A N/A 3 years N/A N/A N/A N/A N/A 1 year 1 year 1 year N/A N/A

Forward 20 years 20 years Indefinite Indefinite N/A Indefinite 5 years Indefinite Indefinite 5 years 5 years 5 years 10 years 20 years 20 years Indefinite Indefinite

Page R1-28 R3-19 R1-36 R1-37 R1-38, R2-31 R1-56 R1-56 R2-24 R3-16 R2-26 R3-16 R2-40 R2-41 R2-42 R3-20 R2-49 R3-37