Chapter 17 - S Corporations Flashcards
What are Separately stated items?
Section 1231
Net Short term capital gains and losses
Net Long term Capital gains and losses
Dividends
Charitable Contributions
Taxes paid to a foreign country or to a US Possession
Tax Exempt interest and related expense
Investment income and related expense
AMont previously deducted
Real estate activities
Section 179 deduction
Credits
Deductions disallowed in computing S corporation’s income ( i.e., deductions whose separate treatment could affect a SH’s tax liability )
What items decrease S corporation’s AB?
1) Distributions by the S Corporation that were not included in income ( this is done before determining the allowable loss deduction )
2)All separately stated loss and deduction items
3) Any non separately stated loss of the S Corporation
4) Any expenses of the S Corp that are not deductible in figuring its taxable income or are not properly capitalized
5)The SH’s deduction for depletion of oil and gas property held by the S corporation to the extent it is not more than the SH’s share of the adjusted basis of property.