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Unformatted text preview: 70% of the dividend received. The corporation's dividends-received deduction is equal to the 70% times the lesser of: 1. dividends received from taxable, unaffiliated domestic corporations or 2. the firm's taxable income, as adjusted. 30) Net operating loss (NOL) is carried back two years and forward 20 years for a corporation. For small businesses, a NOL carryback period is five years. 62) Income = $62,000 from operations Net capital loss = $5,000 The income from operations is its ordinary income, so there will be no capital loss allowed since a corporation's capital loss is only allowed to offset any capital gains. At this point the capital loss of $5,000 will be set to carryover, and so the taxable income is $62,000 for the year....
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This note was uploaded on 10/17/2010 for the course TAX 5761 taught by Professor Wolod during the Spring '10 term at Nova Southeastern University.
- Spring '10