1 (a)

(d)
-

(1) -
(f) (2)

(i)

(h)

61
62
63 (a)
(b)
(1) -
(c) (2)

(3)

(6)

(d)

(e)

(f)

(g)

31
151
2663 (a)
(b)

(c)

1001
(a)

(b)

(c)

1012 (a)
83 (a)
(b)

(c)

(e) (3)

(h)

61 (a) (12)

108 (a)
(d) (1)

(d) (2)

(d) (3)

(e) (1)

(e) (2)

(e) (5)

165 (a)
(c) (2)

166 (a)
 (b)

(d)

(e)

1014 (a)
(b)

(c)

(e)

61 (a) (12)

108 (f) (1)

(f) (2)

(f) (3)

102 (a)
(b)

(c)

274 (b)
74 (a)
(b)

(c)

117
61 (a) (4)

104 (a) (2)

213 (a)

105 (a)

105 (b)
106 (a)
61 (a) (1)

119
(a)

(b)

(d)

132 (a)
(b)

(c)

(d)

(e)

(f)

(h)

(i)

(j)
 62 (a)
(b)

(e)

(d)

(e)

67 (a)
(b)

68 (a)
262 (a)
(b)

170 (a)
(b)

(c)

(d)

(e) (1)

(f) (3)

(f) (8)

501 (c) (3)

(4)

165 (a)
(e)

(h)

103 (a)
163 (a)
(d)

(h)

265 (a) (2)

267 (a) (2)

(b)

105 (a)
(b)

106 (a)
(a) (a) (1)

(a) (2)

162 (a)
(c)

(f)

(g)

165 (d)
183 (a)
(b)
 212
280E
162 (a) (1)

(m) (1)

(m) (3)

(m) (4)(A)

(m) (4)(C)

1 (h) (1)(C)

(h) (3)(B)

(h) (11)

11 (a)
(b)

62 (a) (2)(C)

(c)

162 (a) (2)

274 (a)
(b)

(d)

(e)

(k)

(n)

117 (a)
172 (a)
(b) (1)(A)

(c)

111 (a)
1341 (a)
267 (a) (2)

(b) (1)

(c) (4)

446
448 (a)
(b) (3)

(c) (1)

451 (a)
461 (a)
(h)

1272 (a) (1)

(2)

(3)

(4)
 (5)

(d) (2)

1273 (a)
(b)

1275 (a) (1)(A)

163 (e) (1)

(2)

21
24
129
132 (a) (3)

(d)

151
152 (a)
(b)

(c)

(f) (1)

(f) (2)

(f) (5)

162 (a)
262 (a)
1 (a)
(b)

(c)

(d)

(f)

2
7703 (a)
(b)

32 (a)
(b)

(c)

(i)

1011
1015 (a)
(e)

1041 (a)
(b)

(c)

1031 (a)
(b)
 (c)

(d)

1 (h) (1)

(2)

(3)

(4)

62 (a) (3)

1211 (b)
1212 (b) (1)

1221
1222
1244 (a)
(b)

(c) (1)

267 (a)
1231 (a) (1)

(2)

(3)

(b) (1)

170 (e)
121 (a)
(b)

(c)

(d)

(f)

165 (c)
167 (a)
(b)

(c)

168 (a)
(b)

(c)

(d)

(e)

(i) (1)

179
197 (a)
(b)

(c)

(d)

263 (a)
 263 (A)(a)
(A)(b)

1016 (a) (1)

(2)

1245 (a) (1)

(2)

(3)

(b) (1)

(2)

(3)

(4)

(d)

469 (a)
(b)

(c)

(d)

(e)

(f)

(g)

(h)

(i)

(j)

(k)

(l)

7701 (o)
267 (a)
(b)

(c)

(d)

269 (a)
1211
53 (a)
(b)

(c)

(d)

55 (a)
(b)

(c)

(d)

56 (a) (1)

(b)
57
Tax Brackets
Phaseout of Marriage Penalty in 15% Bracket; Adjustments in tax tables so that inflation will not result in tax increases.
Rate reductions after 2000.
Maximum Captial Gains Rate
Gross Income Defined
Adjusted Gross Income Defined
Taxable Income Defined; In general.
Individuals who do not itemize their deductions - TI = AGI - stnd ded. - personal exemptions.
Standard Deduction
Additional standard deduction fo aged and blind.
Certain individuals not eligible for standard deduction.
Itemized Deduction
Election to itemize.
Aged or blind additional amounts.
Marital status.
Taxwithheld on wages = credit against the tax imposed.
Allowance of deductions for personal exemptions
Imposition of Accuracy-Related Penalty on Underpayments
Portion of Underpayment to Which Section Applies
Negligence
Determination of Amount of and Recognition of Gain or Loss
Computation of Gain or Loss
Amount Realized
Recognition of Gain or Loss
Basis of Property - Cost
Property transferred in connection with performance of services; in general.
Election to Includ in gross income in year of transfer.
Special Rules
The section shall not apply to the transfer of an option without a readily ascertainable FMV.
Deduction by employer.
Income from discharge of indebtedness.
Income from discharge of indebtedness; exclusion from gross income.
Meaning of terms; special rules relating to certain provisions; Indebtedness of Taxpayer.
Title 11 Case - defined.
Insolvent - defined.
General rules for discharge of indebtedness; no other insolvency exception.
Income not recognized to extent of lost deductions
Purchase money debt reduction for solvent debtor treated as price reduction.
Losses, GR = there shall be allowed as a deduction any loss sustained during the taxable year and not compensated for b
Limitation on losses of individuals - losses incurred in any transaction entered into for profit, though not connected w/a
Bad Debts.
Amount of deduction = adjusted basis provided for in 1011 for determining the loss from the sale or other disposition of
Nonbusiness debts.
Worthless securities.
Basis of Property Acquired from a Decedent; in general.
Property acquired from the decedent - by bequest, devise, inheritance, or estate; during lifetime in trust.
Property representing income in respect of a decedent.
Appreciated property acquired by decedent by gift within 1 year of death.
Income from discharge of indebtedness.
Student loans, in general.
Student loan.
Exception for discharges on account of services perfomred for certain lenders.
Gifts and inheritances, general rule: GI doesn't include value of property acquired by gift, bequest, devise, or inheritance
Income.
Employee gifts.
Disallowance of certain entertainment, etc., expenses; gifts.
Prizes and awards, general rule. Limit = $25/yr/ee.
Exceptions for certain prizes and awards transferred to charities.
Exceptions for certain employee achievement awards.
Qualified scholarships
Gross income - for
Compensation interest.
injuries or sickness - GI does not include the amount of any damages other than punitive received on
account
Medical, dental, etc. physical
of personal expensesinjuries or physical
- allowance sickness.
of deduction for expenses paid during taxable year, not compensated for by
isnurance or otherwise to extent such expenses exceed 10% of AGI
Amounts received under accident and health plans - generally, amounts received by an ee through accident/health insurance for per
injuries or sickness shall be incl. in GI to the extent such amounts are (1) attributable to contribution by er which not incl. in GI of ee
(2) paid by er.
Amounts received under accident and health plans - amounts expended for medical care. Except in cass where deducted
under 213, GI does not include amounts attributable to employer contributions if such amounts are paid direclty or indi
to the t/p to reimburse expenses incurred by him for med care.
Contributions by employer to accident and health plans - GR = GI of an ee does not incl. er provided coverage under an a
Gross income: compensation for services, incl. fees, commissions, fringe benfits, and similar items.
Meals or lodging furnished for the convenience of the employer.
Meals if furnished
accept/decline noton business
taken premises
into account. eeofmay
er and lodging
exclude if eeharge
if fixed req. tofor
accept
mealson(whether
the business
out ofpremises
comp orof er as
own condition
funds, but m
pay whether accept or not), >1/2)
Lodging furnished by certain educational institutions to ee.
Certain Fringe Benefits:
No-additional-cost exclusion
service defined:from
suchGIservice provided for by er to ee is offered for sale to customers in ord course an
incurs no substantial additional cost, incl. forgone revenue) in providing.
Qualified ee discount defined: property = can't excee gross profit percentage of price at which offered to others and serv
Working condition fringe: any property/services provided to ee to extent that if ee paid for would be allowable as 162/1
De Minimis Fringe:
employment, transitany property/service
pass, qualified parking,whose valuebicycle
any qual. is so small as to make
commuting accouting for Limits
reimbursement. it unreasonable/administrati
= 100/month (a/b), 17
applicable annual limitation.
Certain individuals treated as ee for purposes of subsections (a)(1) and (2).
Reciprocal agreemetns.
Special rules.
certain req. repayments of supplemental unemp. - jury duty pay remitted to employer - moving expenses - interest on ed
loans - higher edu expenses - HSA - costs involving discrimination suits
Qualified performing artist
Certain arrangements not treated as reimbursement arrangements
Definition; special rules
Unlawful discrimination defined.
2-percent floor on misc. itemized deductions; GR = allowed only to the exxtent that the aggregate of such deductions > 2
Miscellaneous itemized
allowable for teh taxabledeductions.
year shall be reduced by lesser of 3% of the excess of AGI over the applicable amt or 80% of the
amount of itemized deductions otherwise allowable for such taxable year.
Personal, living, and family expenses - GR = no deduction.
Treatment of certain phone expenses: any charge (incl. taxes thereon) for basic tele service with respect to the 1st line p
Charitable etc. Contributions and Gifts; Allowance of deduction.
Percentage Limitations
Charitable Contributions Defined
Carryover of Excess Contributions
Certain contributions of ordinary income and captial gain property - GR
Denial of deduction in case of payments by certain trusts.
Substantiation requirement for certain contributions.
Exempt org - definition applicable for charitables. Cannot benefit a s/h or individual privately, no legislation or campaign
ees, the membership of which is limited to the ees of a designated person or persons in a particular municipality, and the net earnin
which are devoted excl. to charitble, education, or recreational purposes.
Losses - GR: allowed as a dedn any loss sustained during the taxable yr and not compensated for by insurance or otherw
Theft losses only
Treatment: - sustained
allowedduring taxable
for loss yr in which
that exceeds $100;discovers
loss must loss.
exceed personal casualty gains and then 10% of AGI; gain
be treated as gains from sales or exchanges of cap assets (losses then as similar losses).
Interest on state and local bonds: not incl. in GI except as provided for in 103(b).
Interest - GR: dedn allowed for all interest paid or accrued w/i the taxable year on indebtedness.
Limitation on investment interest = shall not exceed the net investment income of the t/p for the taxable year.
Disallowance
Interest relatingof deduction
to tax-exmpt forincome:
personalnointerest.
dedn shall be allowed for int on indebtedness incurred or continued to purcha
carry obligations the interest on which is wholly exempt from taxes imposed by this title.
Matching of dedn and payee income item in the case of expenses and interest.
Relationships i.e. persons referred to in subection (a).
Amounts
referred toreceived
in (a) ifunder accidentare
such amoutns andpaid,
health plans or
directly - amounts
indirectlyattributalbe to reimburse
to the t/p to employer contributions. Not incl.by
for expneses incurred in him
GI. for
med care.
Contributions by emplloyer to accident and health plans - GR: except as otherwsie provided in this section, GI of ee does
incl er-provided coverage under an accident or health plan.
Gross income - compensation for services, including fee, commissions, fring benefits, and similar items.
Gross
Trade income - gross
or business income- derived
expenses from
GR: shall business.
be allowed as a dedn all the ord/necessary expenses paid or incurred during the
taxable year in carrying out any trade or business.
Illegal bribes, kickbacks, and other payments.
Fines and penalties - no dedn shall be allowed under (a) for any fine or similar penalty paid to a gov't for the vio of any la
Treble damage payments under the antitrust laws - no dedn for 2/3 of amount...
Losses - wagering losses: shall be allowed only to the extent of the gains from such transactions.
Activities
the tax yearnotonly
engaged
if suchinactivity
for profit - GR:
were no dedn
engaged allowed
in for profit,inbut
an only
activity engaged
to the extentinofby anGIindividual/S
the Corp not
from such activty forfor
theprofit
TY ex
the dedns allowable by reason of paragraphs (1).
TY for production/collection of income; for management/conservation/maintenance of property held for production of
income, or in connection w/the determination, collection, or refund of any tax.
Expenditures in connection with the illegal sale of drugs.
GR: shall be allowed as a dedn a reasonable allowance for salaries or other compensation for personal services actually
Certain
comp ofexcessive
such ee for eeTY
renumeration
is required to - GR: in case ofs/h
be reported publicly
underheld corp, no dedn
Sec Exchange Act byallowed
reasonfor ee ee
that renumeration w/respect to
is among 4 highest
compensate officers for TY other than CEO.
Applicableee
more outside renumeration - GR: defined
directors, (ii) material termsas, arew/respect
disclosedto toany
s/hcovered ee for any
and approved by aTY,
majthe
of aggregate amount
the vote, and allowable
(iii) before any as
py
the comp committee refereed to in (i) certifies that goals and any other terms were satisfied.
Max capital gains rate: 15% percent of the lesser of....
Adj. net capital gain = net capital gain reduced by unrecaptured 1250 gain and 28% rate gain + qualified dividend incom
Dividends taxed as net capital gain.
Corporations in general - a tax i hereby imposed for each TY on the TI of every corporation.
Amount
performed of Tax.
by an official as an ee of a state or pol. ssubdivision thereof in a position compensated in whole or in part on a
basis - certain
substantiate the t/bexpenses
dedn of ee.
covered or provides ee the right to retain any excess amount. These req. shall not apply to any
expense to the extent that substantiation is not req under 274.
T/B expenses:oftraveling
Disallowance expenses (incl.expenses
certain entertainment meals/lodging other thanamusement,
- entertainment amts which or arerecreation,
lavish/extravagant under
GR = no dedn circumstnac
otherwise
allowable under this shall be allowed for any (A) activity... (B) facility... (2) Special Rules, (3) Denial of dedn for club dues
Gifts
respectmust be <$25.
to entertainment etc., for any expense for gifts, or with respect to listed property unless substantiates amount an
time and place, and business
rec expenses for ees; ee sh bus purpose.
meetings; meetings of bus leagues; items avail to public; entertainment sold to customer
incl. in income of persons not ee.
Business Meals
Only 50%scholarships
Qualifed of meals and- GR:
entertainment
GI does notallowed
incl. anyasamount
dedn. received as a qual. scholarship by an individual who is a candid
for
Netaoperation
degre at an edu
loss org described
dedn: dedn allowed in section
for TY170(b)(1)(A)(ii).
an amount equal to the aggregate of (1) the NOL carryovers to such year, p
(2) the NOL carrbyacks to such year.
Years to which loss may be carried - GR: except as otherwise provide, (i) carryback 2 TYs preceding the taxable year of s
loss, and (ii) carryover to each of the 20 TYs following the TY of the loss.
NOL defined:
Recovery of taxthe excessitems
benefit of the- dedns:
dedns allowed
GI does by notthis
incl.chapter
incomeover the GI. Shall
attributalbe be recoveryduring
to the computed w/thethe mods
TY ofspecified
any amtinded
su
prior TY to extent
Computation of taxamount did restores
where t/p not reduce the amount
substantial of taxheld
amount imposed
underbyclaim
chapter.
of right - GR: get deduction for amount whi
was included b/c t/p thought they had an unrestricted right to the item and found out did not after ty ended.
Losses, expenses, and interest w/respect to transactions btw related t/p. (a)(2) Matching of dedn and payee income item
Relationships - incl. members of a family as defined in (c)(4).
Family
combo of an individual
permitted shall incl.
by secretary; only
(d) T/Pbrothers
engagedand sisters
in more (whole
than or half), spouse,
one business; (e) req.ancestors,
respectingand linealindescendants.
change method; (f) fail
request
Limitationchange
on use of cash method of accounting - GR: c corp, partnership w/c corp partner, or tax shelter may not comp
using cash-receipts
Exception entities and
withdisbursements
GR of not moremethod of accounting.
than $5,000,000, paragraphs 1 and 2 shall not apply to any corp or partnership
any TY if for all prior TY after dec 31, 1985, such
$5,000,000 GR Test: a corp/pship meets the test for any prior entity or any predecessor
TY if the avg met theGR
annual $5 of
million GR testfor
such entity ofthe
subsection (c).
3-TY period
ending
GR for TY with
of such prior TY
Inclusion: Amtdoes notitem
of any exceed
of GI$5,000,000.
shall be incl. for the TY in which received by the t/p unless under the metho
acct used in computing TI, such amount
GR for TY of Deduction: amt of any dedn or credit is to be properly
allowedacct forbe
shall astaken
of a diff
forperiod.
the TY which is the proper TY under the me
of acct used in computing TI.
when econ perforamnce with respect to such items occurs; econ perf defined, see notes; exception for recurring items, a
events test, and
after 7/1/82, ansubsection
amount equal not to
to the
applysumto of
certain items.
the daily portions of the orig issue discount for each day during TY on whic
holder held such debt instrument.
Exceptions: tax-exempt oblig; US savings bonds; ST obligatoins; obligations issued by natural persons before 3/2/84; lo
between natural persons.
Determination of daily portions.
Adjusted issue price.
Accrual
Definitoinperiod.
and special rule - basis adjustment: the baiss of any debt insturment in the hands of the holder thereof shall b
increased
Determinationby theofamt incl. in
Amount of his GI pursuant
Original to this section.
Issue Discount - GR: means the excess of (a) the state redemption price at maturit
the issue price; 1/4 of 1 percent de minimis rule.
property; (4) other cases = stated redemption price at maturity; (5) property includes services and the right to use prop
not money
Other though.and special rules - debt instrument GR: except as provided for in (B), means a bond, debenture, note, o
definitions
certificate or otherissue
Interest - original evidence of indebtedness.
discount, GR: portion of the orig issue disc w/respect to such debt instrument which is allowabl
dedn to the issuer for TY shall be equal to the aggregate daily portions of the orig issue discount for days during such TY
Definitions and special rules: (A) debt instrument (B) daily portions (C) ST obligations.
Expenses for household and dependent care services necessary for gainful employment: credit.
Child tax credit:
Dependent credit for each
care assistance qualifying
programs: GI ofchild
an eeper 151;
does notMAGI
incl. phaseout.
amounts paid or incurred by er for dependent care assis
provided to such ee if the assistance is furnished pursuant to a program which is described in subsection (d).
Certain Fringe Benefits: exclusion from GI - working condition fringe.
Working condition fringe: any property/services provided to ee to extent that if ee paid for would be allowable as 162/1
Allowance of deductions for personal exemptions - 151(c) = additional exemption for dependents.
Dependent defined - GR: (1) qualifying child or (2) qualifying relative.
Exceptions:
requirements(1) independents
3 (under 19,ineligible, (2) married
24 if student), dependents,
not provided over 1/2 (3)ofcitizens or nationals
own support of otheryear,
for calendar countries (exception
not filing fo
joint retur
other than for claim of refund w/spouse; (4) deals with more than one person able to claim.
Child defined:
a full-time individual
student at edu who is a170(b)(1)(A)(ii)
org per son, daughter, stepson, or stepdaughter
or is pursuing full-time of the t/p,
course or an eligibleon-farm
of institutional foster child of the
training t/p
under
supervision
Special suppportof... test in case of students: for purposes of (c)(1)(D) and (d)(1)(C), in case of individual who is a child of t
and a student, amoutns received in scholarships for study shall not be taken into account.
Trade or business expenses - GR: shall be allowed as a dedn all the ord/necessary expenses paid or incurred during the
Personal, living, and family expenses - GR = no deduction.
Married filing jointly/surviving spouse tax bracket.
Heads of households tax bracket.
Unmarried individuals (other than surviving spouses and heads of households) tax bracket.
Married individuals filing separate returns tax bracket.
Phaseout of marriage penalty in 15-percent bracket; adjustments in tax tables so that inflation will not result in tax incre
Definitions:
during his TY(a) suchsurviving spouse, (b)
determination HoH,
shall (c) certain
be made married
as of the time ofindividuals
such death; living
andapart,
(2) ind(d) NR aliens,
legally and (e)
separated cross
from his ref.
spou
under a decree of divorce or of separate maintenance shall not be considered as married
maintaining such household during the TY, and (3) during the last 6 months of TY, such individuals spouse is not a mem
such household, such individual shall not be considered as married.
Allowance of credit.
Percentages and amounts.
Definitions and special rules.
Denial of credit for individuals having excessive investment income - $2,200.
Adjusted
that if suchBasis
basisforisdetermining
greater thanG/LF<V- at
GR:theadj basis
time shall
of the bethen
gift, the basis perpurpose
for the 1012, adjusted as provided
of determining in 1016.
loss, the basis shall be FM
unknown and can't reasonably determine = FMV.
Gifts between
Transfer spouses:
of property basis shall
between spousesbe determined
or incident under
to divorce1041(b)(2),
- GR: no notgainthis section.
or loss shall be recognized on transfer of prop
from an individual to a spouse or former spouse, but only if the transfer is incident to divorce.
Transfer treated as gift; transferee has transferor's basis.
Incident
held eitherto divorce: occursusw/i
for productive in a1 t/b
yearorafter the(2)
for inv. date on which the
Exceptions; (3) marriage ceases, or
req that property beisidentified
related toand
the that
cessation of the
exchange bem
completed not more than 180 days after trasfer of exchanged property.
Gain from exchanges not solely in kind.
Loss
Basisfrom exchanges
- shall be the same not assolely
thatin ofkind.
the property exchanged, decreased in amt of any money received by the t/p and incre
in the amt of gain or decreased in the amt of loss to the t/p recogniezed on the exchange.
Maximum
Net capitalcap gaingains
taken rate
into - gen: if a t/p
account has a net cap
as investment gain for
income: forany ty, the tax
purposes imposed
of this by thisthe
subsection, section fo such
net cap gain ty
forshall
any not ex
ty sha
reduced by the amt which the tp takes into account as investment income under 163(d)(4)(B)(iii).
Adjusted Net cap gain: sum of net cap gain reduced by unrecaptured 1250 gain and 28 percent rategain, plus qualified d
28% rate gain
AGI defined;
Limitation onLosses
capitalform
losses sale or exchange
- t/p other thanofcorps:
property - theform
losses dedn allowed
sales by part VIof(161
or exchanges and following)
cap assets as lossesonly
shall be allowed fromtot
slaes orloss
Capital exchanges, plusand
carrybacks if such losses exceed
carryovers: such
if a t/p gains
other thanthecopr
lower
hasofNCL
$3,000 (1,500
for any TY: MFS),
(1) theorexcess
the excess
of theofNSTCL
such losses ov
over the
shall be a STCL in the succeeding ty, and (b) the excess of the NLTGL over the NSTCG for such year shall be a LTCL in the s
Capital assets defined.
Other
Lossesterms
on smallrelating to capital
business stock gains
- GR: and losses.
a loss on section 1244 stock issued to ind which would but for this section be treate
loss from sale/exchange of a capital asset shall, the extent provided in this section, be treated as an ordinary loss.
Maximum amountmore
sutained, derived for any thanTY:50%$50K or $100K
of its aggregateMFJ.GR from sources other than royalties, rents, dividends, interests, annui
exchanges of stocks or securities.
dedn and payee income item in the case of exp. and interest if...dedn not allowed until included in GI of the person to wh
made.
Property used in the t/b and involuntary conversions. GR - (1) gains exceed losses: if 1231 G > 1231 L, such G/L shall be
treated as LTCG or LTCL, as the case may be.
Gains do notconversion
involuntary exceed losses: intoifother
1231property
G < 1231orL,money
such G/L shall not used
of property be treated
in t/basorG/L
anyfrom salesheld
cap asset or exchanges
greater thanof cap asset
1 year an
w/t/b or trans entered into for profit.
Definition of property used in the t/b: used in the t/b of a character which is subject to the allowance for depreciation 1
eld for more than
contributions 1 year,
of stock forand
whichrealmarket
property used in t/b,
quotations are held
readilyforavailable
more than (7)1 recapture
year, which
ofisdedn
not...on certain dispositions of
exempt use property.
period ending on the date of the sale/exchnage, such property has been owned and use by the t/p as principal residence
periods aggregating
whatever each spouse 2 years
qualifiesor more.
for if single. (3) Application ot only 1 sale or exchange every 2 years. (4) special rule for
certain sales by surviving spouses; (5) exclusion of gain allocated tononqualified use.
Exclusion for t/p failing to meet certain requirements.
Special rules.
Election
for profit,tothough
have section not apply.
not connected with a t/b, and (3) except as provided in (h),, losses of property not connected w/a t/b o
trans entered into for profit, if such losses arise from fire, storm, shipwreck, or other casualty or from theft.
Depreciation - GR: dedn for a reaonsable allowance for the exhaustion, wear, and tear (obsolescence) of property used i
See 168 for property to which 168 applies.
Basis for depreciation:
Accelerated Cost Recovery adjusted
System basis provided
(ACRS) - GR: for
deprin dedn
1011,under
for the167
purpose
shall beof determined
determiningby the G/L the
using on sale of property;
(1) applicable de
method; (2) applicable recovery period, and (3) applicable convention.
Applicable depreciation method.
Applicable recovery period.
Applicable convention - half-year.
Classification of property.
Definition of class life.
Election to expense
197 intangible. Amt certain
of such depreciable
dedn shall be business assets.
determined by amortizing the adjusted basis of such intangilbe ratably over th
year period beg w/the month in which intangible was acquired.
No other depreciation or amoritization dedn allowable.
Amortizable sectin 197 intangibles.
Section 197 intangible.
betterments made to increase the value of any property or estate, shall not appy to...; (2) any amt expended in restoring
property or inmaking good the exhaustion thereof for which an allowance is or has been made.
Capitalizatin and inclusion in inventory costs of certain expenses - nondeductibly of certain direct and indirect costs.
Property to which
receipts, losses section
or other applies:
items, (1) property
property chargealeproduced by t/p or
to cap account, (2)nopropert
but adj for acquired to resale.
taxes/carrying charges or expenditures
described in 173
For wear and
disposed tear,
of the obsolescence,
amount by whichamort, andof
the lower depletion
recomputedto extent
basisof
orthe
amtamount.
realized/FMV exceeds the adjusted basis of such
property shall be treated as OI.
Recomputed Basis.
Section 1245 Property.
Exceptions and limitations - Gifts.
Transfers at Death
Certain tax-free transactions.
Like kind exchanges; involuntary conversions.
This section shall apply notwithstanding any other provision of this subtitle.
Passive activit losses and credits limited - disallowance.
Diallowed lose or credit carried to next year.
Passive activity defined.
Passive activity loss and credit defined.
Special rule for determining income or loss from a passive activity.
Treatment of former passive activities.
Dispositions of entire interest in passive activity.
Material participation defined - regular, continuous, and substantial.
$25,000 offset for rental real estate activities.
Other definitions and special rules.
Separate app of section in case of publicly traded partnerships.
Regulations
Clarification of economic substance doctrine. Defined: the CL doctrine under which tax benefits under subtitle A w/resp
a transaction are not allowable if the trans does not have econ substance or lacks a business purpose.
Losses, expenses, and interest w/respect to tran btw related t/p. GR.
Relationships
Constructive ownership of stock
Amount of gain where loss previously disallowed.
Acquisitions made to evade or avoid income tax - in general.
Limitations on capital
Credit for prior year minlosses: corps =- only
tax liability to extent
allowance of gains
of credit: fromshall
there suchbesales or exchanges;
allowed as a creditother t/pthe
against = offset cap gains,
tax imposed by at
for any TY, an amt equal to the min tax credit for such TY.
Minimum tax credit: excess (if any), of the adj net min tax imposed for all prior ty beg. after 1986, over the amt allowabl
Limitation: shall not exceed the reg tax liablity reducted by the sum of credits over the tentative min tax for the TY.
Definitions.
Alternative minimum tax impoosed - GR.
Tentative minimum tax.
Regular tax.
Exemption amount.
Adjustments in computing AMT income - adj applicabl to all t/p: depreciation.
Adjustments applicable to individuals.
Items of tax preference.
 Excess of amt realized over the adj. basis.

for by insurance or otherwise.

d w/a trade or business.
ion of property.

GR: basis = FMV on date of death..

r an accident or health plan.

dition of employment

d services = 20 percent.
162/167 deduction.
stratively impracticable..
ns > 2% AGI.

line provided to any residence of the t/[ shall be treated as a personal expense.

profit, except as provided for.

ually rendered. [Trade or Business Expenses].
ect to any ee to extent renumeration > $1 million.

ble as a dedn for renumeration for services performed by such ee.

stnaces) while away from home in the pursuit of a trade or business.

in subsection (d).

e item in the case of exp. and interest if...

162/167 deduction.

on for adopted child).

e t/p; adopted shall be treated as a child of blood.

g the taxable year in carrying out any trade or business.

Children to whom the subseciton applies to: any such childthat (i) has not attained

the marriage.
not exceed sum of...

fied dividend income.

rom
ly tothe saleoforGs
extent exchange of property = dedn from GI.
from such
esthe
er overNLTCG
such gains.
for such year
n the succeeding ty.

annuities, and sales or

o whome the pymt was

ear and held in connection

sed in t/b or held for production of income.

erty; if lease, no portion of adjusted basis will be allocated to leasehold interest.

ins, any excess up to $3,000 can offset OI.

owable as a credit under (a) for such prior TYs.

hildthat (i) has not attained age 18 before the close of TY, or (ii) (I) has attained age 18 before the close of TY and meets the age re
ose of TY and meets the age requirements of section 152 (c)(3) and (II) whose earned income for such TY does not exceed 1/2 of am
ch TY does not exceed 1/2 of amount of the individuals support for such TY, (B) either parent of such child is alive at the close of the
child is alive at the close of the taxable year, and (C) such child does not file a joint return for the taxable year.
 1.61-1 (a)
1.61-2 (a) (1)

1.61-2 (d) (1)

1.61-14 (a)
1.61-21 (b) (1)

1.61-21 (b) (2)

1.83-1 (a) (1)

1.83-1 (b) (2)

1.83-2 (a)
1.83-3 (e)
1.61-2 (d) (2)(i)

1.61-2 (d) (1)

1.132-2 (a)
(b)

(c)

1.132-3 (e)
1.132-4
1.132-5 (a) (1)

1.132-6
1.119-1 (a) (1)

(a) (2)

1.170A-1 (c)
(g)

1.213-1 (a) (1)

(e) (1)

1.61-3 (a)
1.162-1 (a)
1.162-7
1.162-8
1.162-2 (a)
(b)

1.162-6
1.162-5 (a)
(b)

(c)

(e)

1.111-1 (a) (2)

1.162-11 (a)
1.263 (a)-4(d)(3)
(a)-4(f)(1)

1.451-1 (a)
 1.451-2
1.461-1 (a) (1)

(a) (2)

1.446-1 (c)(1)(ii)(C)
1.461-4 (g) (1)
(g) (2)

1.1272-1 (b) (1)

(g)

1.1001-1 (e)
1.1015-1 (a)
1.1015-4 (a)
1.1031(a)-1
1.1031(d)-1 (a)

1.170A-1 (c) (1)

1.162-4
1.179-1 (f) (1)

1.263(a)-1 (a)
1.263(a)-4 (b) (1)

(3)

(c) (1)

(f) (1)

1.1001-2 (a)
(b)
Gross income - general definition
Compensation for services, incl. fees, commissions, and similar items.
Compensation paid other than in cash.
Miscellaneious items of gross income.
Valuation of fringe benefits.
Fair market value.
Property transferred in connection w/the performance of services; incls in gross income.
Subsequent sale, forfeiture, or other disposition of nonvested property.
Election to includ in gross income in year of transfer - in general.
Meaning and use of certain terms - property.
Property transfered to employee or independent contractor.
Compensation paid other than in cash. Property = FMV incl. in GI; services = FMV of other services.
No-additional cost services, in general.
Reciprocal agreements.
Example.
Qualified ee discounts - excess discounts.
Line of Business Limitation
Working condiion fringes - in general, definition.
De minimis fringes.
Meals: excl if (i) furnished ont he bus. premises of er, and (ii) meals are furnished for convenience of er (as determined b
Meals furnished w/o a charge - mere declaration that for convenience of er not enough, based on exam of facts, circumst
Value of a contribution in property.
Contributions of services - no deduction allowable under 170 for a contribution of services.
Med/dental/etc. - allowance of deduction.
Definitions.
Gross income derived from business.
Business expenses - in general.
Compensation for pesronal services.
Treatment of excessive compensation.
Traveling expenses. Reasonable and necessary given context.
.Amounts currently paid or accrued for books, furniture, and professional instruments and equipment, the useful life of w
deducted.
are deductible as O + N bus. exp. if the edu: maintains or improves skills req. by ind
for employmnet (b)(2)minimum
Nondeductible: or other t/bor meets expressrequirements
educational requrements and
of ind's er or
(b)(3) law/regs.
qualification
for new trade(c)(1)
Deductible: or business.
maintaining or improving skills and (c)(2) meeting requirements
of er.
Travel away from home.
over $40 cost) is not a recovery of a section 111 item. Such gain is in no case excluded from gross income under section 111, regardless of whether
excluded.
specified sum, purchaer may deduct in his return portion split over years of lease;
taxes paid by T - T may deduct, incl. as GI for LL, amt of tax ded. by LL
Prepaid
after firstexpenses: t/p must
date on which capitalize
t/p realizes theprepaid
right orexpenses.
benefit; or (ii) end of TY following hte TY in which the payment is
made.
GR for taxable year of inclusion: gains/profits/income = year actually/constructively
received by t/y unless other year based on method of acct.
upon it at any time or could have during TY if notice of intent to withdraw had been given. Not if subject to subst.
limitations
GR for TY oforDedn:
restrictions
t/p usingthough.
cash receipts and disbursement method = take into
account
fact of the liab, the amount of the depr/depletion
in TY in which paid; also and losses under
liability can be determined 167/611/165.
with reasonable
accuracy, and econ
clearly reflects performance
income. has occurreed
Gen acceptable withwith
if it accords respect ot the
g.a.a.p., liability.
is consistently used
by the t/p from year to year, and is consistent w/income tax regs.
Certain liabilities for which payment is economic performance - in general, econ perf
occurs when
Liabilities payment
arising underis amade
works tocompensation
the person to which
act or the
out liability is owed.
of any tort, breach of
contract,
determine the debt instrument's yield to maturity, (ii) determine the accrualowed.
or violation of law - econ perf occurs when paid to person liability periods, (iii) determine the OID allocable
to each accrual period, (iv) determine the daily portions of OID.
the amt of any pymt from the issuer to the holder under the debt instrument other
than
sale ora pymt of qual.
exchange state interest.
is insufficient to restore t/p's adj basis, a loss is sustained. Note basis could be different depending on
if calculating G/L.
Basis of property acquired by gift. Basis in gift is the same as it would be in the hands of the donor or the last preceding
owner by whom
of (1) greater it was
of (i) amtnotpaidacquired
by ee forbyproperty
gift. Sameor for
(ii)loss, unless the
transferor's adjbasis
basisisfor
greater than FMV,
the property then
at the useof
time FMV.
the transfer,
and (2) amt of increase, if any, in basis authorized by 1015(d) for gift tax paid.
transferred by th et/p with proper adjustments tot he date of the exchange; if additional condiseration is given by the
t/p, the basis
transferred byofththe property
et/p acquired
with proper shall be the
adjustments same
to the as of
date thethe
property
exchange;transferred + amt
if additional of additionalisconsideration.
condiseration given by the
t/p, the basis of the property acquired shall be the same as the property transferred + amt of additional consideration.
Value of a contribution in property - if a CC is made in property other than money, the amt of the contribution is the
FMV of the property at the time of the contribution reduced as provided in section 170(e)(1) ad paragraph (a) of
1.170A-4
Repairs: gen,or 170(e)(3) and 1.170A-4A(c).
t/p may deduct amounts paid for repairs and maintenance to tangible property if amounts paid are not
otherwise required to be capitalized.
Election to expense certain depreciable assets - basis = must reduce depreciable basis of teh property by the amt of the s
Capital
guidance expendtures
or fed register;in general.
amt paid to create/enhance a sep and distinct intangible asset, amt paid to facilitate the
meaning of (e)(1).
Separate and distinct intangible asset defined.
Acquired intangibles - in gneral.
12 month rule.
Discharge of liabilities - inclusion in amount realized.
Effect on FMV or security.
 All income from whatever source derived, unless excluded by law. Any form: money, property, services.

Receive property/services as pymt - incl. FMV/stipulated service price assumed FMV unless evi to contrary.
Ex: punitive damages, another person's payment of the t/p's income taxes, illegal gains, treasure trove.
Report amount by which the FMV exceeds sum (amount if any paid for beenefit or on behalf of recipient + amount specif
Determine on basis of all facts/circumstances = amt would've paid in an arm's length trans.
n gross income.

Real and personal property other than either moeny or an unfunded and unsecured promise to pay money or property i
Difference between amount paid for the property and the amount of its FMV is compensation and shall be included in GI
= FMV of other services.

rnished for convenience of er (as determined by analysis of all facts/circumstances in each case).
r not enough, based on exam of facts, circumstances. Look for substantial noncompensatory business reasons.

ution of services.

nstruments and equipment, the useful life of which is short, may be

m gross income under section 111, regardless of whether the $40 recovery is or is not

ollowing hte TY in which the payment is

 had been given. Not if subject to subst.
Capitalize for things like
construction of improvements.

ual periods, (iii) determine the OID allocable

. Note basis could be different depending on

n the hands of the donor or the last preceding
sisfor
greater than FMV,
the property then
at the useof
time FMV.
the transfer,
aid.
e; if additional condiseration is given by the
e;ansferred + amt
if additional of additionalisconsideration.
condiseration given by the
ansferred + amt of additional consideration.
money, the amt of the contribution is the
n section 170(e)(1) ad paragraph (a) of
o tangible property if amounts paid are not

ciable basis of teh property by the amt of the section 179 expense dedn.
angible asset, amt paid to facilitate the
 y, property, services.

MV unless evi to contrary.

ains, treasure trove.
on behalf of recipient + amount specifically excluded from GI from some other section of IRC Subtitle A.

d promise to pay money or property in the future.

mpensation and shall be included in GI. Basis = amt paid + amt incl. in GI.

siness reasons.