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16 Cards in this Set
- Front
- Back
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How is the Corporation's G/L calculated during the formation of a corporation?
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Do not not recoganize G/L during the formation for a corporation
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How is the Coroporations basis in the property calculated during the formation
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Greater of Adj. NBV or Debt assumed by corp.
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How is the shareholder's G/L calculated during the formation of a corporation?
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No G/L recognized if :
80% Control Boot not received a. cash received b. CoD |
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How is the shareholder's basis in common stock calculated during the formation of a corporation?
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Cash Contributed
Property-NBV, reduced by COD Added taxable boot(zero) Service-FMV |
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How is prepaid income (interest, rent, royalty) treated concerning taxable or not?
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In advance is still income. Unless the income is going to be refunded, such as rent deposits.
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How does GAAP treat Interest income on municipal or state bonds, and proceeds from life insurance on officer's lifes?
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Not considered taxable income.
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Domestic Production Deduction
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Deduction of a specific % of their qualified production income, may not exceed 50%
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How do you calculate Domestic Production Ded. (DPD)
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% of the Lesser of:
Qualified Production Activities income Taxable income |
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What is and how do you calculate Qualified Production Activities Income
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Domestic Production Gross Rec.
(COGS) (Other Directly related Exp) (Proper share of other Ded) |
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What are the types of income that can be considered for DPD
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Manufactured, Produced, Grown, Constructed, Engineering, Architectural
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What are the rules concerning Executive Compensation deduction
-C Corp |
Can not deduct expense in excess of $1,000,000 paid to CEO or top 4 most highly compensated officers.
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What are the rules concerning Bonus accruals deduction
-C Corp |
Are deductible if all events have occured, must be paid within 2.5 months after year end.
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What are the rules concerning Bad Debt Specific Charge
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Accrual-Must use direct write off
Cash-not deductible |
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What are the rules concerning Charitible Contribution
-C Corp |
10% of taxable income, maybe carried forward.
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How does a C Corp Handle Causalty Losses
Partially Damaged |
NO $100 or 10% AGI
-loss is limited -Decline in FMV -AJB immediately before damage |
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How does a C Corp Handle Causalty Losses
Fully Damaged |
AJB of property
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