C-corps

Question 0

Calculation of basis to shareholder

Answer 0

Adj basis of transferred prop (incl cash)
\+ FMV services rendered
\+ gain recog by shareholder 
(Cash rec'd)
(Liab assumed by corp)
(FMV non-money boot rec'd)

Question 1

Basis of CS to shareholder

Answer 1

Cash - amt contributed
Property - NBV
    Asset NBV
    (Liab)
    -------------
    Net basis in stock

Question 2

If there is no boot OR when liab do NOT exceed basis (when someone contributes to a corp), then there is no _____

Answer 2

Gain

Question 3

To have boot when contrib to corp….

Answer 3

Liab must EXCEED basis

Question 4

M1 temporary differences

Answer 4

Int inc in advance
Rental inc in advance
Royalty inc in advance

GAAP = income later
Tax = pay tax now

Question 5

M1 permanent differences

Answer 5

Int inc from municipal/state oblig/bonds
Proceeds from life ins on officer where corp is beneficiary
Fed inc tax NOT deductible on tax return

Question 6

Qualified production activities income calc

Answer 6

DOMESTIC prod gross receipts
(COGS)
(Other directly allocable exp or loss)
(Proper share of other ded)

Question 7

Domestic production deduction

Answer 7

9% of lessee of:
QPAI
Taxable inc

Question 8

Charitable contribution limit

Answer 8

10%

Accrual must be paid w/i 2.5 mo of taxable year end

Question 9

Goodwill tax vs GAAP rule

Answer 9

Tax = amortize SL over 15 yrs
GAAP = test for impairment

Question 10

Corporate net cap loss carryover

Answer 10

3 back, 5 fwd

Question 11

NOL carryover

Answer 11

Back 2, fwd 20

Does not offset other inc

Question 12

Individual net cap loss carryover

Answer 12

0 back, unlimited fwd

Max $3000 offset Other Inc

Question 13

Calculate general business credit

Answer 13

Cannot exceed net inc tax less greater of:
25% tax liab above $25000
Or
“Tent min tax” for the yr

Question 14

Dividend received deduction

Answer 14

Ownership. DRD
0-20%. 70%
20-80. 80
80+. 100

Entities not eligible for DRD = don’t take it personally
PSC
Personal holding co
(Personally taxed) S-corps

Question 15

Small corps are required to pay what for tax?

Answer 15

Lesser of:
100% of current yr tax
Or
100% of previous year tax

Question 16

Large corps are required to pay what for tax?

Answer 16

100% of current year tax

Question 17

What are the 3 tax options for a c-corp?

Answer 17

1. Regular tax
2. Minimum tax
3. Earnings tax OR PHC tax

Question 18

GAAP vs. tax rules for consolidations

Answer 18

GAAP = over 50%
Tax = 80-100%

Question 19

General calculation for E&P

Answer 19

Accumulated E&P as of beg of yr 
\+/- current E&P for tax year less any distributions deemed from current E&P
(Distributions from accum E&P
----------------------
End accum E&P

Question 20

Dividends are distribution of property by corp out of E&P:
Current E&P (by yr end):
Accumulated E&P (distrib date):
Return of capital (no E&P):
Cap gain distrib (no E&P, no basis):

Answer 20

Taxable div
Taxable div
Tax free & reduce CS basis
TI as cap gain

Question 21

General rule for what is taxable for corp paying dividend

Answer 21

Pmt of div does not create taxable event (reduction of E&P)

Exception: property div