Rose Corporation (a calendar year taxpayer) has taxable income of $300,000, and its financial
records reflect the following for the year.
Federal income taxes paid
Net operating loss carryforward deducted currently
Gain recognized this yea
Federal excise taxes that are no longer imposed include:
None of the above.
Taxes not imposed by the Federal government include:
Tax on rent cars.
Taxes levied by both states and the Federal government include:
None of the a
There are a number of important topics that we will cover in Chapter 20. The first one is the Current
Distribution such as corporation writing checks to the shareholders and the question is that how the shareholders
treat the received funds? Is
We are beginning two chapters focusing on Corporation transactions. Basically, there are two main subjects:
1. Forming a corporation.
2. Corporate operation with variety of topics.
351deals with how we fund the corporation. We a
There are two main concepts in Chapter 17. One deals with the disposition of the BUSINESS property, another
deals with the depreciation recapture rule.
If you think of the term, I think it will be easy to deal with. The entire chapter is dealin
Its a chapter that focuses on capital gain and capital loss.
Its very important to distinguish between capital gain and loss for various reasons.
For one thing, for individual, I mean the human being like me and you. The net long
There are 2 main concepts in Chapter 15. One is Involuntary Conversion. The other is the like-kind exchange.
Both of these concepts allow us to DEFER the recognition of the gain.
What type of transactions may be label as
CHAPTER 14 PROPERTY TRANSACTIONS: BASIS DETERMINATION AND
RECOGNITION OF GAIN OR LOSS
I. Determination of Gain or Loss
A. Gain or loss is the mathematical different between the amount realized in a sale
or other disposition and the adjusted basis of the p
It is the first four chapters to deal with PROPERTY TRANSACTION.
The basic theme we have to be aware of is that Congress has chosen to tax gain from the disposition of any
properties. It does not matter if the properties are related to business
Alternative Minimum Tax
There are a few very rich people that do not need to pay taxes. They are not illegal avoid the tax, but they can
find a way in the tax rule that write-off all the taxable income. Congress sees this situation and so they
Three areas are very important in Chapter 10.
1. Bad debts
2. Net Operating Loss
When we get into the subject for bad debts, we have to distinguish the business bad debts to Nonbusiness bad
If it is business bad de
There are two types of tangible property: Real Property and Personal Property.
Real property (or realty) is land and anything attached to the land (building, curbs, fences, streets).
Personal Property is property that is not realty and is usuall
Chapter 7 Class Note
Expensenothing is deductible unless the Congress indicates they are in fact deductible. It is a opposite in
terms of the Income.
There is a code section cover the broad matter. Most business expense is in 162 in Internet Reven
Income is broadly construed for tax purposes to include virtually any type of gain, benefit, or profit that has
Three basic questions to address concerning income:
1. Did the taxpayer have income?
2. If the taxpayer had income, wa
Taxable Entities: those entities that are subject to taxation and those that are merely conduits.
Tax Formulas: mathematical relationships used to compute the tax for the various taxable entities.
Property Transactions: tax treatment of sales, e
Tax compliance: encompasses all of the activities necessary to meet the statutory requirements of the tax law.
Everyone can get into the tax preparation business. However, only CPA, attorneys, enrolled agents are
authorized to practice before IR
The Nature of a tax
1. US defined tax as an exaction for the support of the Government; derives a majority or revenues.
2. Taxes have become powerful instrument to attain social and economic goals
3. No direct relationship between exaction of re