Corp Tax - Ninja

Question 1

1244 worthless stock

Answer 1

Loss on worhtless stock is an ordinary loss
-Taxpayer must be the original stock owner
-must be an individual or partnership
50000 limit / 100000 mfj - remainder is capital loss

Question 2

Form 1120

Answer 2

Corp income tax return

Question 3

Rules for filing 1120

Answer 3

Return due regardless of income level
return due 3.15 if on a calendar year basis
automatic 6 month extension available

Question 4

How to find deductible charitable contributions

Answer 4

Taxable income before Charitable contributions, DRD, NOL carry backs
x 10%
= Deductible Charitable contributions

Question 5

DRD %

Answer 5

Qualified dividends from domestic corporations only

0-19 70% DRD
20-79 80% DRD
80> 100% DRD

Question 6

Corporate Losses

Answer 6

• Capital Losses deductible to extent of capital gains
• Net ST capital gains taxed at ordinary rate
• Corps can carryback losses 3 years and carry forward losses 5 years as STCL only
• Bad debt losses classified as ordinary

Question 7

M1

Answer 7

Reconciles book to tax income before NOL/DRD
Permanent differences (tax exempt interest)
Temporary differences (accelerated depreciate tax, SL)

Question 8

M2

Answer 8

Reconciles Beg RE to End RE

Question 9

M3

Answer 9

Like M1, but for corporations with 10m+ in assets

Question 10

Corporate distributions

property
accum E/P

Answer 10

Property - use FMV

Distribution is a dividend to the extent of current AEP (Ordinary income)

Remainder is a return of basis

then remainder is a capital gain