R3

Question 1

Small business stock Section 1244 ordinary loss deduction limit?

Answer 1

MFJ-100,00

All other filers–50,000

Question 2

Section 1244 deduction limit?

Answer 2

MFJ-100,00

All other filers–50,000

Question 3

Small business stock Section 1244 loss deduction qualifications?

Answer 3

Issued to original individual/ partnership (noncorporate) stockholder.
Only for the first 1M capital stock

Question 4

Small business stock gain exclusion limit? requirements?

Answer 4

1. noncorporate original holder of c corp with 5 years
2. exclude 50% (or 75 or 100 during recent bad economy years) limit to 10 X basis and 5M
3. rest is 28% rate

Question 5

Estimated Payments requirements for Corporate income Tax?

Answer 5

underpayment penalty if amount owed >500;

must pay 100% current year’s tax or 100% last years (if last year >0 and last 3 years’ taxable income all less than 1 M.

Question 6

How is gain or loss recognized upon corporate liqudation by shareholder? by corporation?

Answer 6

Compare basis with FMV. Corporation-treat as if sold assets. (FMV-nbv(basis))