U.S. Corporation Income Tax Return
Department of the Treasury
Internal Revenue Service
A Check if:
1a Consolidated return
(attach Form 851)
b Life/nonlife consolidated return .
2 Personal holding co.
(attach Sch. PH) .
, 20 11
Generally, dividends paid to individuals are taxed according to their income tax brackets.
Ordinary dividends paid are subject to the taxpayers income tax rate. However, qualified
dividends paid are taxed at the capital gains tax rate which is usu
S and C corporations share many similarities. First, they both offer limited liability protection to
their owners and shareholders so they are not personally liable or responsible for business debts.
Next, both are considered separate legal entiti
Complete liquidation of a corporation is defined by Reg. Sec. 1.332-2(c). This regulation states
that any distributions made by the liquidating corporation must completely cancel or redeem all
its stocks or be one of a series of payments that will
The term arms length, in any sense, means that something takes place between two or more
parties that are not related in any way. To be more specific, Bell Corporation wants to sell one of
their buildings to Wedde Corporation. The two corporations
The factors Congress mandated for consideration in regards to what is classified as a debt or
equity are stated in Sec. 385 and are as follows:
Whether there is a written unconditional promise to pay on demand or
on a specified date a certain