Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Regulation-CorpTax
Corporate Taxation
| Question | Answer |
|---|---|
| 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
Popular Accounting sets