Corporate Tax Flashcards
1
Q
When contributing cash to Corp.:
A
If less than 80% test, then it’s taxable but no gain or loss is recognized
2
Q
Consolidated:
A
Have to own 80%. Only C Corps. not S Corps
3
Q
PSCs:
A
Matching Rule.
4
Q
Inheritance:
A
Always FMV and always long term
5
Q
Gift taxes are included in Basis.
A
Inheritance taxes are not included.
6
Q
By Gifts:
A
If FMV is higher than basis, then use basis
7
Q
By Gifts:
A
If FMV is lower than Basis, then you have the 3 Rules of Sale
8
Q
Like-kind exchange:
A
Must be real property, but same country. Then No taxable effect
9
Q
Capital gains or Losses for Corp:
A
Add them together and they can offset against any gain
