Ch14_Part III

Ch14_Part III - 1 Chapter 14 Taxation of Corporations Basic...

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Unformatted text preview: 1 Chapter 14 Taxation of Corporations Basic Concepts Part III 2011 CCH. All Rights Reserved. 4025 W. Peterson Ave. Chicago, IL 60646-6085 1 800 248 3248 www.CCHGroup.com 2 of 57 Chapter 14 Exhibits Chapter 14, Exhibit Contents A 1. Determination of Corporate Taxable Income 2. Capital Gains and Losses 3. Net Capital Gain 4. Net Capital Losses 5. Capital Gains Example 1 6. Capital Gains Example 2 7. Depreciation Recapture 8. Depreciation Recapture Example 9. Net Operating Loss 10. Net Operating Loss - Example 3 of 57 Chapter 14 Exhibits Chapter 14, Exhibit Contents B 11. Charitable Contributions 12. Ten Percent Limitation 13. Initial Measure of Contribution 14. Long-Term Capital Gain Property 15. Ordinary Income Property 16. Inventory and Research Property 17. Charitable Contribution Deduction Example 1 18. Charitable Contribution Deduction Example 2 19. Related Taxpayers Losses and Expenses 20. Organizational Expenditures 4 of 57 Chapter 14 Exhibits Chapter 14, Exhibit Contents C 21. Organizational Expenses Example 22. Start-up Expenditures 23. Dividends-Received Deduction 24. Dividends-Received Deduction Example 1 25. Dividends-Received Deduction Example 2 26. Dividends-Received Deduction Example 3 27. Extraordinary Dividends 28. Extraordinary Dividends Example 29. Executive Compensation 30. Domestic Production Activities Deduction 31. Domestic Production Activities Deduction Example 5 of 57 Determination of Corporate Taxable Income Can use any calendar or fiscal tax year Regardless of tax years of its owners Ability to have a tax year different from that of its owners can produce tax savings, especially in year of incorporation Personal-service corporations must use a calendar year for their tax year unless they can establish a business purpose for a fiscal year Most corporations must use the accrual method S corporations, qualified farming businesses, qualified personal service corporations, and corporations with average annual receipts of $5 million for three prior tax years may use cash basis Chapter 14, Exhibit 1 6 of 57 Capital Gains and Losses Gains and losses resulting from taxable sale or exchange of capital assets must be classified as short-term or long-term Net short-term and net long-term positions must be computed Then determine corporations overall capital asset position There are six possible combinations: 1. NLTCG > NSTCL 2. NLTCG < NSTCL 3. NSTCG > NLTCL 4. NSTCG < NLTCL 5. NLTCG and NSTCG 6. NLTCL and NSTCL Chapter 14, Exhibit 2 7 of 57 Net Capital Gain Corporations do not receive preferential treatment on NLTCG Net capital gains (combinations 1, 3, and 5, in previous slide) are included in corporations gross income and taxed at regular rates Chapter 14, Exhibit 3 8 of 57 Net Capital Losses Corporations may not take a deduction for net capital losses in year in which they occur Capital losses only against capital gains...
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This note was uploaded on 01/14/2012 for the course ACCT 101 taught by Professor Smith during the Spring '11 term at UT Arlington.

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Ch14_Part III - 1 Chapter 14 Taxation of Corporations Basic...

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