If a Buyer Purchases Chattel Paper in the Ordinary Course

question 62

True/False

If a buyer purchases chattel paper in the ordinary course of business and without notice of any prior security interest,the buyer can obtain the good involved free of any security interest.

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Definitions:

2% Floor

A tax rule that limits the deductibility of certain miscellaneous expenses to only the portion that exceeds 2% of the taxpayer’s adjusted gross income.

Sales Taxes

Taxes levied by governments on the sale of goods and services, which are typically paid by the consumer at the point of purchase.

Schedule A

A form used with the U.S. federal tax return (Form 1040) to itemize deductions, including medical expenses, state and local taxes, and charitable donations.

Itemized Deduction

Itemized deductions are specific expenses allowed by the IRS that can decrease an individual's taxable income.