R4

Question 1

DRD Levels

Answer 1

70%
80%
100%

Question 2

Are business gifts deductible?

Answer 2

Maximum $25/yr per recipient

Question 3

Charitable contribution limit

Answer 3

50% AGI (Only cash and hot assets)

30% with appreciated property

Question 4

Uniform Capitalization rules of sec 263a

Answer 4

kjhfv

Question 5

consent dividends

Answer 5

count as paid out, shareholders pick up the amount without the corporation paying anything out

Question 6

Half-year and mid Quarter conventions are for…

Mid-month convention is for…

Answer 6

Personal Property

real property

Question 7

Personal Holding Companies

Answer 7

Dividends paid deduction includes Actual dividends paid and consent dividends. (non-taxable income is not included in the PHC eligibility requirement)
-could retain up to 250,000 in the corporation (minimum Accumulated earnings credit)

Question 8

Corporate liquidation tax ramifications

Answer 8

distributions are subject to 2 levels of taxation. 1) corp. must recognize the gain (as if it sold at FMV) 2) shaareholders would do the same thing.

Question 9

Could corporations deduct capital losses in excess of capital gains?

Answer 9

No! Only individuals can deduct up to $3,000 towards ordinary income.

Question 10

Which entity has the most flexibility in chosing an accounting period?

Answer 10

c Corps!

Question 11

How to deduct Organization Costs?

Answer 11

The first 5,000 are automatically expensed (deducted) (Unless expenditures exceed $50,000) and the rest are amortized over 180 months.

expenditures relating to issuing and selling stock are not organizational costs.

Question 12

is gain recognized when submitting PPE into a Corporation (c&s)?

Answer 12

gain is not usually recognized, unless, the liabilties assumed by the corporation are more than the distributor’s basis.