...Life, Death, and Property Rights is a real but extremely sad truth. In this article the readers are shown how HIV started and how it then develops to AIDS. In the beginning of the Article we see that when HIV started it was incurable and there was absolutely nothing that could be done about it. People who had tested positive for HIV where not likely to live longer then ten years. In Africa alone, one in three people between the ages of 15-25 had been tested positive with HIV. As the article goes on we see that HIV had spread the world within years and was now becoming a growing problem in the United States mostly with homosexual men in New York and San Francisco. By the year 2000, 25 million people had been infected with HIV in Africa alone. The fear of HIV was mounting as millions of people had died from the disease and what it carries. AIDS was not the killer itself, AIDS would attack the healthy cells therefore the body would not have any immune system when it caught an illness. People were extremely scared of what they where carrying and were outrageous at the high prices that were needed to pay for their treatments. The protests targeted Pharmaceutical companies and demanded that they either gave their medication out for free or completely abandon their patent rights allowing other companies to create similar or improved versions of the medication therefore making it more available and also cheaper. Pharmaceutical companies “laughed” at these demands and claimed that for...
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...class lives, and recovery periods for assigned property are set out. Rev. Proc. 83-35 obsoleted for property subject to section 168, as added by the Tax Reform Act of 1986. BACK REFERENCES: 87FED ¶1732A, 87FED ¶1732D.0045, 87FED ¶1732D.008, 87FED ¶1732D.08, 87FED ¶1732D.16, 87FED ¶1825.01 and 87FED ¶2732D.007. SECTION 1. PURPOSE The purpose of this revenue procedure is to set forth the class lives of property that are necessary to compute the depreciation allowances available under section 168 of the Internal Revenue Code, as amended by section 201(a) of the Tax Reform Act of 1986 (Act), 1986-3 (Vol. 1) C.B. 38. Rev. Proc. 87-57, page 687, this Bulletin, describes the applicable depreciation methods, applicable recovery periods, and applicable conventions that must be used in computing depreciation allowances under section 168. SEC. 2. GENERAL RULES OF APPLICATION .01 In general. This revenue procedure specifies class lives and recovery periods for property subject to depreciation under the general depreciation system provided in section 168(a) of the Code or the alternative depreciation system provided in section 168(g). .02 Definition of Class Life. Except with respect to certain assigned property described in section 3 of this revenue procedure, for purposes of both the general depreciation system and the alternative depreciation system, the term “class life” means the class life that would be applicable for any property as of January 1, 1986, under section 167(m)...
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...CH 12 The scope of the estate tax Sec 2033 Section 2033 · Gross estate: Value of the property to extend of interest at time of death Section A · estate tax is excise tax: “tax included on the property” · Tax base must include the value of the property that most obviously is transferred (FUNCTION OF 2033) · Section 2033 includes (GROSS ESTATE) o Decedent’s securities o Bank deposits o Real state o Income earned before death are collectible by the estate § Rent § Interest § Dividends § Partnership profits § Refunds § Vested rights § Promissory notes (matured or not) § Insurance policies § Saleable (commercial) leasehold interest § Interest in rented property · By either tenants in common or one-half community. § Federal and State bonds are includable despite their exemption from other taxation either by their express terms or by law · REG 20.2033 o Descendant hold only legal title (trustee) under enforceable oral or written does not possess an interest taxable under section 2033. § Ex: agent o ONLY DIRECTLY OWNED PROPERTY · Principal reliance on judicial and administrative interpretation of Sec 2033’s simple language potentially would yield over inclusions “many” o There are not many limits o Limits must be established o Congress explicit responded what property interest that are to be taxed, eventhough they lied beyond the reach of 2033. § 2033- Base line § Section 2041 · in...
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...************************************************* 1. PROPERTY AND CAR ********************************************************************************************************** 2. Property & Motor Vehicle Insurance We Rent, So Why Do We Need Insurance?: ********************************************************************************************************** 3. Why is it important for people who rent to have insurance? Student Answer: Its important for people who rent to have insurance because if their is a fire, flood,a plumbing issue or other disasters. House hold inventories add up after getting so much. Technologies,...
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...||XXII| We have proceeded from the premises of political economy. We have accepted its language and its laws. We presupposed private property, the separation of labor, capital and land, and of wages, profit of capital and rent of land – likewise division of labor, competition, the concept of exchange value, etc. On the basis of political economy itself, in its own words, we have shown that the worker sinks to the level of a commodity and becomes indeed the most wretched of commodities; that the wretchedness of the worker is in inverse proportion to the power and magnitude of his production; that the necessary result of competition is the accumulation of capital in a few hands, and thus the restoration of monopoly in a more terrible form; and that finally the distinction between capitalist and land rentier, like that between the tiller of the soil and the factory worker, disappears and that the whole of society must fall apart into the two classes – property owners and propertyless workers. Political economy starts with the fact of private property; it does not explain it to us. It expresses in general, abstract formulas the material process through which private property actually passes, and these formulas it then takes for laws. It does not comprehend these laws – i.e., it does not demonstrate how they arise from the very nature of private property. Political economy throws no light on the cause of the division between labor and capital, and between capital and land. When, for...
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...states of matter that scientists know of; there are solids, liquids, gases, plasmas, and Bose-Einstein’s. Physical Properties Physical properties are things that are observed without changing the identity of the substance. You can think of changes in shape changes, in color, and in size. One example of physical change is if you have something that is a certain color and you change it, it doesn’t change the identity of the substance. Another property is in size. This is a physical property because if you change how big or small an object is you will still have the same substance just smaller. Finally the change in shape is a physical property because you still have the same identities of the object it just looks different. Chemical Properties Chemical properties of matter can only be observed and measured by preforming a chemical change or chemical reaction. You only can tell what a chemical property is by changing a substance's chemical identity. Chemical properties cannot be determined just by viewing or touching the substance you have to cause a chemical reaction between the two. For example hydrogen has the potential to ignite and explode given the right conditions; this is a chemical property. Metals in general have they chemical property of reacting with an acid. Zinc reacts with hydrochloric acid to produce hydrogen gas which is also a chemical property. Chemical Change Chemical...
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...Interest, Penalties: 3 Computation of the Estate and Gift Tax 3 General Description of Gift Tax: 4 General Description of the Estate Tax: 4 Role of State Law 4 Scope of the Estate Tax 5 Beneficial Ownership and § 2033: 5 Interests Arising at Death 5 “Property” versus “Expectancy” 6 Bank Deposits, Checks, and Notes 6 Right to Accrued Payments 7 The Scope of the Gift Tax: §§ 2501 and 2511 7 Is There a “Transfer” of “Property?” 7 Interest-Free Loans and Rent-Free Use of Other Assets 8 When is the Transfer “Completed?” 8 Transferred Interest Incapable of Valuation 9 Indirect Transfers 10 What is a “Gift”? 10 Donative Intent and “Adequate and Full Consideration” 10 Transfers of Property in Satisfaction of Marital Rights 11 Dower and Curtesy Interests in the Gross Estate 11 Marital Rights as Consideration 11 Transfers Incident to Separation and Divorce 12 Transfers with Retained Powers and Rights 13 Transfers with Retained Life Estates: § 2036 13 Reciprocal Trusts 14 Retention of Right to Income from Property: § 2036(a)(1) 14 Retention of Possession or Enjoyment of the Property: §§ 2036(a)(1) and 2036(b) 14 Retention of Power to Designate Who Shall Possess or Enjoy the Property: § 2036(a)(2) 16 Transfers with Retained Powers to Alter, Amend, Revoke or Terminate: § 2038 17 Differences Between § 2036(a)(2) and § 2038 19 Transfers with Retained Reversionary Interests: § 2037 19 The “Adequate and Full Consideration” Exception for...
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...Valuation of Intellectual Property: Approaches We have moved into an information age characterized by increasing competition and shorter product life cycles; companies are more dependent on their intellectual properties (IP), as it has being recognized as a Valuable Business Asset. The Value of IP is much different & Valuation is much difficult than the value of any other assets. IP is creation of Human mind but to know the value or to trade that property we have to “value” them. The three main approaches are Market Approach, Income Approach & Cost Approach. Introduction Business enterprise is comprised of Working Capital, Fixed Assets, Intangible Assets and Intellectual Property. The increasing challenges of corporate world everyone wants to earn competitive advantages over others resulting into more dependence on Intellectual Property . Intangible assets Working Business Fixed Capital Enterprise Assets Intellectual Property According to economic theory, the value of an asset is best determined by the market, in the form of a transaction between two unrelated entities dealing at arm’s length. Unfortunately, intangible assets and IP that will eventually support products seldom benefit from open market conditions, either due to novelty or secrecy factors. In consideration of the growing investments required to develop and market products, there is a growing need for assessing the economic value of...
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...an asset. Assets equal the sum of total resources for that particular business as opposed to liabilities. A few examples are office equipment, vehicles, cash, real estate, and other property owned by the business. In a business accounting point of view, there are different types of assets used, such as current, long-term, intangibles, property, plant, and equipment. This list is basically items that hold cash value, which bring in income to the business. Current assets are important to most companies as a source of funds for day-to-day operations. This asset considered as work in process or cash that’s always flowing in and out of the business. A balance sheet item which equals the sum of cash and cash, accounts receivable, inventory, marketable, prepaid expenses, and other assets that could be converted to cash in less than one year. Creditors of a company, will often be interested in how much that company has in current assets, so that if the company goes bankrupt; the creditors can use their assets to pay for their debt. In addition, current assets are important to most companies as a source of funds for day-to-day operations. On the other hand noncurrent assets are not to be turned into cash or be consumed within one year of the balance sheet date. Long – term assets are a value of property, equipment, and other capital assets minus the depreciation, and have a...
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...Solution Sec. 263 disallows current deductions for capital expenditures. Reg. Sec. 1.263(a)-1(b) defines capital expenditures as amounts incurred to add value to or substantially prolong the life of a property. Reg. Sec. 1.162-4 states that “... incidental repairs that neither materially add value to the property nor appreciably prolong its life, but keep it in an ordinarily efficient operating condition may be deducted as an expense.” The question to be resolved is whether Seaweed’s asbestos removal and replacement program adds value or substantially prolongs the useful life of the property (capital expenditure) or merely keeps it in an ordinary efficient operating condition (current period repair expense). In Indopco, the Supreme Court held that a corporate taxpayer was required to capitalize certain fees and other acquisition related expenses it incurred in connection with a friendly takeover by another company, where the transaction produced significant benefits to the taxpayer that extended beyond the tax year at issue. The Supreme Court stated that “... although the mere presence of an incidental future benefit —some future aspect— may not warrant capitalization, a taxpayer’s realization of benefits beyond the year in which the expenditure is incurred is undeniably important in determining whether the appropriate tax treatment is immediate deduction or capitalization.” In LTR 9240004, on facts similar to Seaweed’s, the IRS ruled that the replacement of...
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...A/B Trusts An A/B Trust is any type of trust that splits into two separate and distinct trusts upon the death of the grantor. One of the separate and distinct trusts is a Credit Shelter Trust, which is designed to hold as much of the grantor's property as is sheltered from the federal estate tax by virtue of the unified credit; i.e., $2,000,000 for decedent's dying in years 2006, 2007, and 2008, and $3,500,000 for decedent's dying in the year 2009. The other separate and distinct trust is a Marital Trust, which is designed to hold the remainder of the decedent's property, which is sheltered from the federal estate tax by virtue of the unlimited marital deduction. These separate and distinct trusts are designed to eliminate or reduce the federal estate tax liability of a married couple over the deaths of both spouses. An A/B Trust arrangement can be created under a living trust or a testamentary trust, since these provisions do not take effect until after the grantor's death. See "Credit Shelter Trusts" and "Marital Trusts." See also "Family Trusts" and "By-Pass Trusts." Back to Table of Contents Asset Protection Trusts An "Asset Protection Trust" is a type of trust that is designed to protect assets from the claims of creditors. There are two types of Asset Protection Trusts - a Domestic Asset Protection Trust (also known as an "Onshore Trust" or "DAPT") and a Foreign Asset Protection Trust (also known as an "Offshore Trust"). Both types of trusts are also referred to...
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...Chapter 09 Property Acquisition and Cost Recovery True / False Questions 1. | Like financial accounting, most business property must be capitalized for tax purposes. True False | 2. | Tax cost recovery methods include depreciation, amortization, and depletion. True False | 3. | If a business mistakenly claims too little depreciation, the business must only reduce the asset's basis by the depreciation actually taken rather than the amount of the allowable depreciation. True False | 4. | An asset's capitalized cost basis includes only the actual purchase price; whereas the other expenses associated with the asset are immediately expensed. True False | 5. | The basis for a personal use asset converted to business use is the lesser of the asset's cost basis or fair market value on the date of the transfer or conversion. True False | 6. | Depreciation is currently computed under the Modified Accelerated Cost Recovery System (MACRS). True False | 7. | The 200 percent or double declining balance method is allowable for five and seven year property. True False | 8. | Taxpayers may use historical data to determine the recovery period for tax depreciation. True False | 9. | Taxpayers use the half-year convention for all assets. True False | 10. | If a taxpayer places only one asset (a building) in service during the fourth quarter of the year, the mid-quarter...
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...Financial companies provide a variety of services to the customers. However, some of the biggest financial services which individuals seek is insurance for thir families, property, and even life. Here is a list of top 10 insurance companies in the world in 2014 based on their Market Capitalization (measured in USD for 1st quarter 2014). 10. Zurich Insurance: [pic] Zurich is a global Swiss insurance company, headquartered in Zurich, Switzerland. The company is Switzerland’s largest insurer, with three core business segments: General Insurance, Global Life and Farmers Management Services. Through General Insurance, the group provides motor, home and commercial products and services for individuals. Global Life provides wide range of protection and savings propositions to individual and corporate customers. Farmers provide non-claims administrative and management services for the Farmers Exchanges. The company ranks 84 in the Global 2000 list for 2014. Zurich Group employs around 55000 people, with operations in more than 170 countries and territories across the globe. The company has global network of subsidiaries and offices in Europe, North America, and Latin America, Asia Pacific and Middle East and other markets. Zurich’s strategy for 2014-16 is designed to deliver sustainable, profitable growth in a changing and more competitive business environment. Group is focusing more closely on the markets and consumer segments where the group has competitive edge. Revenues...
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...“meant to be” person for the whole life. When every newly married couple makes vows in front of minister, they say it from their deep down inside. However, life changes. Things don't always work out that way as we thought. Many marriages turn out bad. That’s when you find out prenuptial agreements useful and beneficial, especially for those people, who have family business. It’s a wise choice to protect your family wealth. If a couple does not develop a prenuptial agreement before they get married, the state law and federal law (to some extent) will dictate which party owns the property acquired during marriage, which party is responsible for debts incurred during the marriage, and what happens to the property and debts at death or divorce. State law may even dictate what happens to some of the property owned and some of the debts incurred by each spouse before marriage. However, a prenuptial agreement agreed by the couple themselves gives the prospective husband and wife an opportunity to decide how they want to divide property and debt, as well as handle other financial matters and provide for their children, upon death or divorce. The primary benefit of a prenuptial agreement is that the parties can sit down to discuss the priority of assets and financial conditions during the marriage rather than when they are in the midst of a hotly contested divorce proceeding. They can agree to any terms they want for the treatment of property and debts, as well as decide whether...
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...though, or under the grantor is a limited warranty deed | True | A default by a landlord under the lease generally gives the tenant the right to | Sue the landlord for performance | A determination as to whether property is located in a flood hazard zone is made by the title examiner | False | A farm owner who gives a person permission to fish in his lake gives the person | License | A fee simple absolute estate has a potential infinite duration and unrestricted inheritability | True | A fee simple on condition subsequent estate automatically expires on the happening or nonhappening of the event stated in the deed of conveyance or the will creating the estate | False | A fixture is classified as real property | True | A foreign person affidavit is for the benefit of the purchaser | True | A foreign person affidavit is for the benefit of the seller | False | A foreign person affidavit is signed by the purchaser | False | A foreign person affidavit is signed by the seller | True | A hazard waste indemnity found in many real estate contracts is for the benefit of the seller | False | A judgment that has been recorded in the public records becomes a lien on all property of the judgment debtor owned at the time of recording as well as any future property acquired by the debtor | True | A landlord's basic remedies for tenant's default under the lease are | Sue the tenant for performance and...
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