Chat2 - Corporate Distributions 1 Corporate Distributions...

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1 Corporate Distributions
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2 Corporate Distributions Non-liquidating Distributions  (Dividends) A distribution in the ordinary course of  the corporation’s business, not intended  to distribute anything needed by the  corporation to continue in business The nature of a non-liquidating  distribution is determined by the status  of the corporation’s earnings and profits
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3 Corporate Distributions Reduced by: Federal income taxes Capital losses Losses from related-party transactions Charitable contributions in excess of 10% Unreasonable compensation Penalties and fines
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4 Corporate Distributions Tax-exempt municipal bond interest Life insurance proceeds Federal income tax refunds from  previous years Depreciation Capital loss carry-overs Net operating loss carry-overs
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5 Corporate Distributions Earnings and profits: Distributions made during the year are  reduce accumulated E&P
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6 Corporate Distributions Corporate distributions Value of cash is the amount of cash Value of property is the FMV on the  date of distribution If property distributed is subject to a  liability, value of distribution is the FMV  of the property less the amount of the  liability
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7 Corporate Distributions
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Chat2 - Corporate Distributions 1 Corporate Distributions...

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