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Regulation-CorpTax

Corporate Taxation

QuestionAnswer
Minimum tax credit offset only reg., tax, no CB(only CF)
AMT small corp., exemption first year ALL exempt, gross receipts<5m, 2nd year exempt; years 3&4 exempt if avg previous year gross receipts<7.5m
ACE adj. curr. earngs (ACE-preACE if neg. is lim to PY pos.)= preACE AMTI b4NOL+exempt int., exempt life benef. +70%DRD-cost completion depl.-ADS depr-/+cap'd org& circulation exps., +(FIFO-LIFO), no installment mthd for non-dealers, intangibles amort 5 yrs
DRD deduction if own >80% then all divs excluded from tax, >20% exclude80%, <20% exclude 70% All subject to TI lim., debt financed stock NTE interest deduction, held <46days, no DRD for personal srvcs and holdco's
Non-deductible stock issuance costs printing, underwriters commissions, prof fees for issuance All non-ded., just reduce APIC
Corporate charitable contribution limited to 10% b4 NOLs (CB,except CF is deducted), DRD.  Board authorized but made within 2.5 mos of new year is deductible on curr. TR
RE recon items reductions are contingency reserves , dividends, etc., INCREASES are state refunds from years before last.
Div distributions when AEP has deficit #83 div distribution does NOT affect AEP deficit, but reduces positive AEP
Gain on Corp distribution of property w/liability to shareholder treated as sale @ FMV, if liability assumed by shareholder more than FMV, then corp's gain=liab-BV (losses are not recognized)
Corp's distribution of appreciated property in excess of AEP corp has to recognize gain on prop distribution in excess of basis, which increases AEP.  Taxable divs., to stockholder is the AEP+CEP(due to the gain), if excess the return of capital.
Corp's sale to shareholder prop for less than FMV is "CONSTRUCTIVE " div., distribution = excess of FMV over cash rec'd
Complete liquidation of shareholder interest in a corp is CAP Gain to shareholder
Corp redemption of stock is CAPGAIN to shareholder if(5) does NOT essentially=divs, 2 substantially disproportionate, 3 terminates shareholder interest, 4 partial liquidation,5 to pay death tax
Corp loan to buy back it's stock only the interest is deductible, other fees NON-deductible , unless complete liquidation, then ORDINARY
Corp liquidation of a sub charit contr and NOLs carryover to parent.
Corp complete liquidation all capital gain at FMV( property and inventory)
PHC if corp earns 60% passive income (excluding tax exempt) & fewer than 5 people own 50% of the corp then in addition to reg tax 15% on undistributed PHC income
Accumulated Earnings Tax & Credit imposed on corps @ 15% on earnings accumulated beyond reasonable business needs. Credit is 250k-PYaccum.earnings, or reasonable business needs stmnt
Tax-free Reorganization of corps., A,B,C,D, E, F,G A-stat., merger or consol;B- voting of P for 80%voting of S; C-voting of P for 80%assets of S;D-asset Xfer to P;E-recapitalization of the same corp (bonds for stck);F-mere change in identity,form,place;G-forced asset Xfer to creditors who become owners.
Boot securities securities exchanged by corps that are NOT parties to reorg.
Acquired NOL limitations Sec381&Sec382 P's TI*days owned/365; Sec382, if acquired >50%, FMVofStck*fedTaxExemptRate*days owned/365
Created by: baurjan on 2011-11-18



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