Term
| gain/loss on exchange of property solely for stock |
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Definition
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Term
| gain/loss on exchange of property and boot for stock |
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Definition
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Term
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Definition
| no gain but reduces basis in stock |
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Term
| shareholder's basis in stock (property exchanged for stock |
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Definition
| adjusted basis of property transferred + gain recognized - net boot received |
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Term
| gain realized on exchange of property |
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Definition
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Term
| gain recognized on exchange of property |
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Definition
| lesser of gain realized or boot received |
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Term
| filing requirements for Corporation |
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Definition
form 1120 due March 15
extend with for, 7004 for 6 mos. |
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Term
| deduction for organizational and startup costs |
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Definition
$5,000 for each but reduced $1 for $1 for expenses > $50,000
Remaining balance amortized 15 years |
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Term
| nonallowable costs for organizational and startup costs |
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Definition
| anything to do with stock issuance |
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Term
| Dividend received deduction percents |
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Definition
<20% owned, deduct 70%
20-80% owned, deduct 80%
> 80% owned, deduct 100% |
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Term
| length of time to hold stock to be part of dividend rec'd deduction |
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Definition
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Term
| charitable contributions limit & carryforward |
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Definition
| 10% of taxable income; 5 years forward |
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Term
| carryforward on capital gains/losses; treatment |
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Definition
| back 3 years, forward 5; short term capital loss |
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Term
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Definition
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Term
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Definition
< $5m gross receipts in 1st year
<$7.5m 3 year average |
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Term
| Adjustments to taxable income for AMT |
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Definition
long term contracts
installment sales
excess depreciation -- recalculate
basis adjustments
passive activities
certain loss limitations |
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Term
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Definition
percentage depletion over adjusted basis
tax-exempt interest
appreciated property
intangible drilling costs
accelerated depreciation |
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Term
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Definition
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Term
| Reconcile book to taxes: Add to Book |
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Definition
federal income tax expense
excess capital losses
income -- prepaid rents, royalties, interest, service fees
expenses -- premiums on key-life insurance, gifts > $25, charitable contributions > 10% |
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Term
| Reconcile book to taxes: deduct from book |
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Definition
income not taxable -- interest on municipal bonds, key-life proceeds
expenses not on books -- dividend received deduction, charitable contribution carryover |
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Term
| Distributions from corporations are taxable to the extent of ________ |
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Definition
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Term
| how are distributions to taxpayers treated |
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Definition
1 - dividends to earnings and profits
2 - ROC to basis
3 - capital gain |
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Term
| gain/loss recognized by stockholder on redemption |
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Definition
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Term
| gain/loss recognized by shareholder in complete liquidation |
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Definition
| extent that $ and FMV differ from basis |
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Term
| Credit for accumulated earnings |
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Definition
| $250,000 + dividends pd - accum E&P |
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Term
| Personal holding companies: 2 tests |
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Definition
1 - income: 60% of AGI is passive
2 - stock ownership: >50% value o/s stock owned by <= 5 people |
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Term
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Definition
| parent-subsidiary and brother sister |
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Term
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Definition
| parent-subsidiary -- may file consolidated |
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Term
| Eligibility to be a S-Corp |
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Definition
no more than 100 shareholders (family = 1)
one class of stock |
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Term
| Fringe benefits to S-Corp employees |
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Definition
| provided to > 2% shareholder-employee, must be included in SH income |
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Term
| 3 ways to terminate S-Corp |
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Definition
consent of majority of SHs
passive income > 25% receipts for 3 years |
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Term
| re-election of S-Corp status after terminated |
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Definition
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