I made a spreadsheet with a bunch of tabs.
Tab 1) The different business entities= sole proprietorship, general & limited partnerships, LLP, LLLP, LLC, Corps,& S-Corps. for each one i listed how it was formed, operated, how profits split, authority of owners, rights & duties
Tab 2) Taxes for Individual= Sec. 1231 vs. Sec. 1245 vs. 1250; a chart of the tax bracket for ordinary income, LT capital gains, collectible, & 3.8% surcharge; involuntary conversion; installment sale; stock incentive plans (incentive vs. non-qualified); NOL calculation, AMT formula with list of credits, adjustments, & tax preferences; kiddie tax; & tax credits (american opportunity, lifetime learning, and child & dependent care)… I tried to have an example for each one because doing it with numbers makes it easier to remember
Tab 3) Corp Taxes- Special Deduction Formula, Corp AMT, ACE adjustment, brother/ sister company example, & corp reorganization- A vs. B vs. C.
Tab 4) Basis in stock (outside vs. inside), distributions, liquidations/redemption, loss limitations if any for Corps, Partnerships, and S-Corp. THIS ONE WAS VERY IMPORTANT at least for me because this topic is very easy to get confused between the 3 types of entities
Tab 5) Gift tax formula; federal estate tax; distributable net income for beneficiaries
Tab 6) Carry-back and carry-forward rules for different situations like corp capital loss, charity for individuals, business & casualty loss, Foreign tax credit, disallowed passive losses and so on
Tab 7) Lower of or Greater of rules & examples: the lower of 1) loss basis for gifts ( lower of FMV @ date of gift or adjusted basis of donor) 2) recognized gain for like kind exchange 3) contribution limit for Keogh Plan 4) casualty loss deduction 5) child & dependent care credit 6) Foreign tax credit 7) shareholder gain on formation of corp with boot received 8) shareholder gain on reorganization… the greater of 1) Max gain eligible for exclusion on qualifying small business stock 2) itemized deduction- sales tax or state taxes 3) kiddie tax standard deduction 4) penalty for no health insurance 5) Accumulated Earnings Tax credit 6) Property distributions for reduction in E&P for Corps 7) Penalty to willful attempts to understate tax liability. 8) penalty if tax preparer takes unreasonable position
Tab 8) Contracts- Offer & acceptance, timing rules for UCC vs. common law; risk of loss- FOB shipment vs. FOB destination; Warranties (creation, restriction, and disclaimer)
Tab 9) Bankruptcy- 7 vs. 11 vs. 12 vs. 13.. the proceeds and distributions of debtor's estate
Some of this stuff might be overkill, but it is just very easy to mix up how something is treated by a different form of business or for an individual. Having it in chart form is a great way to study and remember and will help with the SIMS.
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