Question

true / false

Uvw, uns 1055 WILL - wwuuuuUIC. - 10. A C corporation generally can be incorporated tax-free under Sec. 351 regardless of boot paid by transferors. - 11. A change of tax accounting method from an incorrect method does not require permission of the IRS. - 12. The Code contains two major depreciation recapture provisions—$8 1231 and 1250. - 13. For corporations and individuals, net short-term capital gains are taxed at ordinary income rates. - 14. If additional first year depreciation is claimed on used personal property in 2018, the Tax Cuts and Jobs Act (TCJA) allows 100% deduction of tax basis. - 15. Under the recurring item exception for accrual basis taxpayers, some deductions (e.g. warranty claims) nevertheless have to be paid within 18 months.

just need to answer True or False!

Answer 1

10. section 351 states that

Whether you're setting up a new corporation with just yourself or other people, such as partners in a partnership, or getting involved in an existing corporation, under IRC Section 351(a) you can defer (put off) any resulting tax consequence.

hence the statement is false.

11. incorrect or false

For any change in tax accounting methods, taxpayers cannot make accounting changes willingly without first requesting and receiving IRS permission. Also the IRS can force taxpayers to change from inappropriate methods of accounting to methods it deems more appropriate.

12.true

Unrecaptured section 1250 gain is an Internal Revenue Service (IRS) tax provision where previously recognized depreciation is recaptured into income when a gain is realized on the sale of depreciable real estate property. Unrecaptured section 1250 gains are taxed at a maximum 25% tax rate, or less in some cases, as of 2019 Unrecaptured section 1250 gains are calculated on a worksheet within Schedule D instructions, and they are reported on the Schedule D and carried through to the taxpayer's 1040.

13. incorrect or false

for corporations and individuals short term capital gains are taxed at a specified rate of income but not at ordinary rates of taxes.

14. False

additional first year depreciation not available on goods used for personal purpose. hence not applicable

15. as stated some deductions need to be paid after 8.5 months after close of taxable year