Chapter 11- Corporations Flashcards
Regular C corporations are taxed as
separate legal taxpaying entities
S corporations are taxed as
flow-through entities similar to partnerships.
Prior to 2018, the U.S. corporate tax rate structure had eight tax brackets with progressive marginal tax rates ranging from 15 percent to 39 percent. Starting in 2018, corporations are subject to a flat income tax rate of
21%
A personal service corporation is substantially ____ ____
employee owned
Health, Law, Engineering, Architecture, Accounting/Actuary, Performing Arts and Consulting are all activities of
Personal Service Corporations
If a corporation generates a net capital gain, the net gain is included in ____ ____and the tax is computed at the ____ rate
ordinary income;regular
Ordinary income and capital gains are taxed at ___ rates
same
Corporations are not allowed to deduct capital losses against ____ _____ and may only apply them to _____ _____
ordinary income; Capital gains
If capital losses cannot be used in the year they occur, they may be carried back _ years and forward _ years to offset capital gains in those years.
3,5
When a long-term capital loss is carried to another year, it is treated as a ____ ____ capital loss, and may be offset against either___ ____ or _____ _____ capital gains
short-term, long-term or short-term
corporations may also carryforward net operating losses (NOLs) to offset future ____ _____
taxable income
The use of an NOL generated after December 31, 2017 is limited to ___ percent of the current year’s taxable income
80
NOLs generated prior to January 1, 2018 continue to be used ___ percent
100
for NOLs generated after December 31, ____ , the carryback provisions are repealed and NOLs may only be carried _____ indefinitely
2017;forward
previous _-year carryback and __-year carryforward rules continue to apply to NOLs generated prior to January 1, ___
2; 20;2018
