Chapter 11 Corporate Income Tax
|
|
- Allyson Hamilton
- 7 years ago
- Views:
Transcription
1 Chapter 11 Corporate Income Tax Income Tax Fundamentals 2012 Gerald E. Whittenburg Martha Altus-Buller
2 Learning Objectives This chapter pertains to corporations Calculate tax liability using tax rates Compute basic capital gains/losses Ascertain how special deduction may affect taxable income Identify components of Schedule M-1 Outline corporate tax return filing and estimated tax payment requirements Understand how S-Corporations operate and are taxed Understand basic tax rules when forming entity Describe accumulated earnings and personal holding company taxes Define elements of alternative minimum tax calculation
3 Corporate Tax Rates Corporate rates are progressive Marginal rates are from 15% to 39%, depending on taxable income There are eight brackets There are a number of tax bubbles these occur when tax rate schedules recapture savings from prior brackets For corporations with large income (more than $18.33 million) the rate is a flat 35% Qualified personal service corps taxed at flat 35% Architects, CPAs, consultants, etc.
4 Example Corporate Tax Rates Example Johnson & Kelby Inc. (a dental products wholesaler) has taxable income of $300,000 for the current year. What is the corporation s tax liability? How would the answer change if it was an architectural firm, and Johnson & Kelby were principals who provided personal services to their clients?
5 Example Solution Johnson & Kelby Inc. (a dental products wholesaler) has taxable income of $300,000 for the current year. What is the corporation s tax liability? How would the answer change if it was an architectural firm, and Johnson & Kelby were principals who provided personal services to their clients? Solution Corporate tax = $100,250 $22,250 + (39%)($300, ,000) If Johnson & Kelby is a qualified personal service corporation, corporate tax = $105,000 ($300,000 x 35%)
6 Corporate Capital Gains A corporation can choose from two alternative tax treatments on capital gains Taxed at ordinary rates or Elect to pay an alternative tax (35%) on net longterm capital gain (LTCG) Essentially equivalent to maximum regular corporate tax (no tax benefit to LTCG) Bottom line: there is no difference in tax on ordinary vs. capital income
7 Dividends Received Deduction Corporations are allowed a deduction for a percentage of the dividends received from other corporations Attempt to alleviate triple taxation Dividends received deduction is allowed based upon ownership Percentage Ownership Dividends Received % Deduction < 20% 70% 20% or more, less than 80% 80% > 80% 100% Dividends received deduction is limited by % of corporate taxable income shown above (calculated before certain deductions)
8 Organizational Expenditures & Start Up Costs Organizational expenditures pertain to LLCs, corporations and partnerships Start up costs can be incurred by any organization, including a sole proprietorship and entities mentioned above Examples of these type of costs include Investigatory costs to look at a business before deciding whether or not to pursue it Legal/accounting services incidental to organization, costs of a temporary board of directors and state incorporation fees Preopening costs such as advertising expenses, employee training costs, etc.
9 Amortization of Organizational Expenditures & Start Up Costs Organizational expenditures and start up costs are capitalized and then amortized over 180 months However, can make election to deduct up to $5,000 of organization costs in the year corporation begins business $5,000 amount is reduced $1 for each $1 that organizational expenses exceed $50,000
10 Charitable Contributions Corporations are allowed a deduction for charitable contributions Cash basis taxpayers can deduct when paid Accrual basis taxpayers have until the 15th day of the third month following year-end to contribute, as long as pledge is made by year-end Charitable contributions limited to 10% of taxable income* Carry forward unused deduction for five years *Calculated before any loss carry backs, net operating losses (NOLs) or the dividend received deduction
11 Example Charitable Contributions Example Ferndale Corp. had net operating income of $400,000 for the current year and made charitable contributions of $60,000. A dividends received deduction of $80,000 is included in the net operating income calculation. What is Ferndale s charitable contribution deduction; what is the charitable contribution carry forward?
12 Solution Example Ferndale Corp. had net operating income of $400,000 for the current year and made charitable contributions of $60,000. A dividends received deduction (DRD) of $80,000 is included in the net operating income calculation. What is Ferndale s charitable contribution deduction; what is the carry forward? Solution The charitable contribution deduction is $48,000 ($400, ,000) x 10% = $48,000 limit* Therefore, carry forward is $32,000 ($80,000 48,000) *Note: had to add back DRD first!!
13 Reconciliation of Income (Loss) per Books with Income Per Return Schedule M-1 of Form 1120 reconciles accounting (book) income to taxable income Amounts added to book income (left column) Federal tax expense Capital losses Income recorded on tax return but not on books Expenses recorded on books but not on tax return Amounts deducted from book income (right column) Income recorded on books but not on tax return Expenses recorded on tax return but not on books See chapter for other items included on Schedule M-1
14 Schedule UTP Now Required Schedule UTP (Uncertain Tax Position) is required beginning in 2010 for large corporations It requires that the corporation disclose any tax positions taken on prior year s returns that are uncertain o o Allows the IRS to engage in more pointed and directed audit Intended to generate additional revenue
15 Filing Requirements & Estimated Tax Form 1120 filed for regular corporation Form 1120S filed for S Corporation Returns are due by the 15th day of the third month after year-end Can file Form 7004 and receive automatic 6-month extension Corporations must make estimated tax payments in similar manner as self-employed taxpayers, in four installments
16 S Corporations Certain qualified small business corporations may elect to be taxed in a manner similar to partnerships Qualified small business corporation may elect S Corporation status if several criteria apply Operates as a domestic corporation Has 100 or fewer shareholders Shareholders may not be corporations or partnerships Has only one class of stock Has only shareholders that are U.S. citizens or resident aliens
17 S Corporations Corporation must make election of S status in a prior year Or within 2-1/2 months of the current tax year S Corp status stays in effect until revocation* Status can be voluntarily revoked by consent of shareholders or Involuntarily revoked If corporation ceases to be a small business corporation or If corporate passive income is 25% or more for three consecutive years and corporation has accumulated earnings and profits at the end of each of those years *Election is terminated on the date status is revoked
18 Example S Corporation Election Example Swannak Thermography Corporation is a calendar year corporation that makes an S Corporation election on May 25, In which year may the corporation first be treated as an S Corporation?
19 Solution Example Swannak Thermography Corporation is a calendar year corporation that makes an S Corporation election on May 25, In which year may the corporation first be treated as an S Corporation? Solution Since Swannak did not make the S Corporation election within the first 2-1/2 months of the tax year, it will be treated as a regular corporation for It will become an S Corporation for tax year 2012.
20 Income Reporting Must report all elements of income and expense separately on Form 1120S Then each shareholder reports his/her share of these items of corporate income/expense on personal return K-1 takes total shareholder income/expenses and allocates each item to each shareholder based upon his/her ownership percentage If shareholder dies, his/her portion of S Corp items will be included in shareholder s final return
21 Loss Reporting Each shareholder of an S Corp may also report his/her respective share of loss Individual taxpayer cannot take a loss in excess of adjusted basis in stock If loss exceeds adjusted basis in stock plus loans, shareholder can carry it forward If shareholder entered/departed S Corp mid-year, must allocate losses on a daily basis
22 S Corporation Pass Through Items Many items retain tax character when passing through to the S Corporation s shareholders on individual K-1 Examples of such items include Capital gains/losses 1231 gains/losses Dividend Income Charitable contributions Tax-exempt interest Most credits
23 Special Taxes S Corporations, in general, do not pay corporate taxes on their taxable income Certain exceptions exist such as: Built-in gains tax (paid on appreciated assets that were held by corporation prior to S Corp election) Certain tax imposed if corporation has large amount of passive income, such as dividends and income These rules are complex and will not be covered in this text
24 Corporate Formation Shareholders often transfer high-value low-basis assets to a corporation in exchange for stock in company No tax is due on gain from transfer of appreciated assets if following conditions met Shareholder transferred cash or property and Shareholder made transfer solely in exchange for stock* Shareholder is not providing a service and all taxpayers together own at least 80% of stock after transaction *If shareholder receives boot in addition to stock, transaction may qualify for partial nonrecognition of gain
25 Shareholder Basis in Stock A shareholder s initial basis in his/her stock is calculated as follows Basis of property transferred Less Boot received* Plus Gain recognized Less Liabilities transferred Equals Basis in stock Note: generally, corporate assumption of shareholder liabilities that are attached to property are not considered boot received The corporation has a carry-over basis in the property contributed equal to the basis in the hands of the shareholder, increased by any gain recognized by shareholder on the transfer *Boot is any property other than stock
26 Accumulated Earnings Tax (AET) Penalty tax designed to prevent a corporation from avoiding tax by retaining earnings 15% AET imposed on unreasonable accumulation of earnings; this is in addition to corporate income tax o o Corporation may accumulate up to $250,000 a year that is exempt from AET tax or $150,000 for a service corporation May accumulate more if can prove a valid business purpose
27 Example Accumulated Earnings Tax Example Xinix Corporation (a medical device manufacturing firm) has accumulated earnings of $800,000. The corporation can establish reasonable needs for $500,000 of the accumulation. What would Xinix accumulated earnings tax be?
28 Solution Example Xinix Corporation (a medical device manufacturing firm) has accumulated earnings of $800,000. The corporation can establish reasonable needs for $500,000 of the accumulation. What would Xinix accumulated earnings tax be? Solution Xinix AET = $45,000 ($800, ,000) x 15% Note: this is paid in addition to regular tax
29 Personal Holding Company Tax Penalty tax designed to encourage Personal Holding Companies to distribute earnings to shareholders Tax is 15% on undistributed earnings Corporation is not liable for both the personal holding company tax and the AET in the same year
30 Corporate AMT Corporate AMT - calculated similar to the individual AMT AMT is 20% of Alternative Minimum Taxable Income (defined below) Taxable Income +/- Adjustments + Preferences - Exemption* Alternative Minimum Taxable Income (AMTI) Small corporations are not subject to the AMT Defined as having average annual gross receipts < $7.5 million over a three-year period *Exemption is $40,000, but is phased out when AMTI > $150,000
31 You re Done with Chapter 11
U.S. Income Tax Return for an S Corporation
Form 1120S U.S. Income Tax Return for an S Corporation Do not file this form unless the corporation has filed or is attaching Form 2553 to elect to be an S corporation. Information about Form 1120S and
More informationCHOICE OF ENTITY CONSIDERATIONS. A Basic Guide to Entrepreneurs. October 9, 2012
CHOICE OF ENTITY CONSIDERATIONS A Basic Guide to Entrepreneurs October 9, 2012 Bill Osterbrock, Of Counsel Baker Donelson wosterbrock@bakerdonelson.com 404-589-3418 Iliana Malinov, Tax Manager HLB Gross
More informationPresentation of Income and Deductions
TAXATION OF S CORPORATIONS Accounting 551T - Lecture 8 Schlesinger: Chapters 6-8 Robert A. Scharlach Presentation of Income and Deductions Two Categories Separately stated items Non-separately stated items
More informationPresentation for. CSEA IRS/Practitioner Fall Seminars. S Corporation. Darrell Early, IRS. Date September 27, 2012
Presentation for CSEA IRS/Practitioner Fall Seminars S Corporation Darrell Early, IRS Date September 27, 2012 Agenda What is an S Corporation? Why would a Corporation make the S election? How does a Corporation
More informationChoice of Entity: Corporation or Limited Liability Company?
March 2014 Choice of Entity: Corporation or Limited Liability Company? By Gianfranco A. Pietrafesa* Attorney at Law There are many different types of business entities, including corporations, general
More informationU.S. Corporation Income Tax Return For calendar year 2015 or tax year beginning, 2015, ending, 20
Form 1120 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).. 3 Personal
More informationS Corporation Update. Charles E. Marston, CPA, MST Tax Principal, S.R. Snodgrass, P.C. cmarston@srsnodgrass.com
Charles E. Marston, CPA, MST Tax Principal, S.R. Snodgrass, P.C. cmarston@srsnodgrass.com Agenda I. S Corp basics overview II. What s new? Late election relief NII tax Reasonable comp/sh loans Self employment
More information2015 S CORPORATION INCOME TAX RETURN CHECKLIST (FORM 1120S) (MINI)
Client name and number Prepared by Date Reviewed by Date GENERAL INFORMATION DONE N/A 1) Identify authorized officer who will sign the return. 2) Consider if any conflict(s) of interest exist(s) between
More informationThe Business Organization: Choosing an Entity
The Business Organization: Choosing an Entity The subject matter is divided into two sections: 1. Section A shows direct comparison of different types of organizational structures. 2. Section B details
More informationInstructions for Form 1118
Instructions for Form 1118 (Rev. December 2009) Foreign Tax Credit Corporations Department of the Treasury Internal Revenue Service Section references are to the Internal Part III; Schedule H; and Schedule
More information2014 S CORPORATION INCOME TAX RETURN CHECKLIST (FORM 1120) (MINI)
(FORM 1120) (MINI) Client name and number Prepared by Date Reviewed by Date GENERAL INFORMATION DONE N/A 1) Consider if any conflict(s) of interest exist(s) between the entity and its shareholders and/or
More informationWillamette Management Associates
Valuation Analyst Considerations in the C Corporation Conversion to Pass-Through Entity Tax Status Robert F. Reilly, CPA For a variety of economic and taxation reasons, this year may be a particularly
More informationS Corporation Questions & Answers
S Corporation Questions & Answers Provisions in Chapter 173, P.L. 1993 provide that a corporation may elect to be treated as a New Jersey S corporation. The following is designed to address the most commonly
More informationThe S-Corporation Election; Advantages & Disadvantages
The S-Corporation Election; Advantages & Disadvantages Presented by: National Society of Accountants 1010 N. Fairfax Street Alexandria, VA 22314 800-966-6679 www.nsacct.org 1 Learning Objectives At the
More information1/5/2016. S Corporations. Objectives. Define an S Corp
S Corporations Objectives Define an S corp. Identify the benefits of being an S corp. Determine how an entity elects to be an S corp. Establish how an S corp is taxed. Describe the S corp shareholder s
More informationBusiness Types and Payroll Taxes
Minority Business Development Division (MBDD) Prince George s County Office of Central Services Legal Issues and Taxes Facing Small and Minority Businesses October 26, 2010 Business Types and Payroll Taxes
More informationConsiderations in the Health Care Company Tax Status Conversion from C Corporation to Pass-Through Entity
Health Care Forensic Analysis Insights Considerations in the Health Care Company Tax Status Conversion from C Corporation to Pass-Through Entity Robert F. Reilly, CPA For a variety of economic and taxation
More informationA person. who wants BACKGROUND. corporation. corporation. action, the. The C corporation. subject to. qualify to make. or certain
CHOOSING THE FORM OF BUSINESS ORGANIZATION A person who wants to start a business can choose from a variety of different types of business entity formations. For instance, a person can form a business
More informationS and C Corporations Create Different Tax Consequences
Tax information about corporate entities and strategies S and C Corporations Create Different Tax Consequences An S corporation is a pass-through tax entity, while a C corporation is a completely separate
More informationChoosing the Right Entity for Maximum Tax Benefits for Your Construction Company
Choosing the Right Entity for Maximum Tax Benefits for Your Construction Company Timely re-evaluation of choice of entity will enhance the shareholder value of your contractor client By Theran J. Welsh
More informationChoice of Entity. Shareholders of publicly traded corporations can come and go with ease
One of the most important decisions facing a new business owner is the selection of the most appropriate legal entity for their new business. There are several options including C Corporations, S Corporations,
More informationREAL ESTATE OPERATIONS IN THE CORPORATE FORM -- WHEN DOES IT MAKE SENSE?
REAL ESTATE OPERATIONS IN THE CORPORATE FORM -- WHEN DOES IT MAKE SENSE? I. INTRODUCTION A. Historically real estate owned by partnership or limited partnership. B. Many circumstances favor the use of
More informationCorporations: FAQ's. Is my Corporate Name Available?
Is my Corporate Name Available? Corporations: FAQ's Money Matters Tax Service will perform a non-binding name check for name availability within the state of incorporation. We perform the name check at
More informationCHOOSING THE RIGHT BUSINESS STRUCTURE
CHOOSING THE RIGHT BUSINESS STRUCTURE One type of business structure is not necessarily better than another, therefore, it is important to evaluate your needs now and into the future, and consider the
More information2013 ATHENS INSTRUCTIONS
2013 ATHENS INSTRUCTIONS WHO MUST FILE CITY OF ATHENS INCOME TAX RETURN Non Mandatory Filing: If your only income is from W-2 wages and your employer has withheld 100% of the Athens tax due, you are not
More informationChoice of Entity. Paul E. Costantino, CPA, MST Costantino Richards Rizzo, LLP, Wakefield
Choice of Entity Paul E. Costantino, CPA, MST Costantino Richards Rizzo, LLP, Wakefield I. Overview of Entities The entity selection process is one of the first steps in the formation of any business,
More informationBasic Tax Issues in Choosing a Business Entity 2015
Basic Tax Issues in Choosing a Business Entity 2015 By Robert M. Finkel and Diana C. Española mbbp.com Corporate IP Licensing & Strategic Alliances Employment & Immigration Taxation Litigation 781-622-5930
More informationCompleting and Filing Schedule O
Department of the Treasury Instructions for Schedule O Internal Revenue Service (Form 1120) (Rev. December 2012) Consent Plan and Apportionment Schedule for a Controlled Group Section references are to
More informationBy: Philip J. Clements and Cassie Glynn. October 2011
C TO S TAX CONVERSION By: Philip J. Clements and Cassie Glynn Fundamental Tax Planning Principles: October 2011 General Principles: When everything is done, you should find that income or gains are taxed
More informationComparing REITs. kpmg.ca
Comparing REITs US vs. Canada January 2013 kpmg.ca Table of Contents REITs US & Canada Tax at Shareholders Level el US & Canada Corporate domestic shareholders Individual domestic shareholders Foreign
More informationDifferent Types of Corporations: Advantages/ Disadvantages of Corporations
Different Types of Corporations: Advantages/ Disadvantages of Corporations Article published at: http://www.morebusiness.com/getting_started/incorporating/d934832501.brc Anyone who operates a business,
More informationWhen Acquirer or Target is Spelled with an S Special Considerations for S Corporations in Mergers and Acquisitions. C. Wells Hall January 25, 2007
When Acquirer or Target is Spelled with an S Special Considerations for S Corporations in Mergers and Acquisitions C. Wells Hall January 25, 2007 40160935 IRS CIRCULAR 230 NOTICE. Any advice expressed
More informationSCORE SAS 64 Sponsored by U. S. Small Business Administration ORANGE COUNTY CHAPTER 114, (714) 550-7369 www.score114.org
SCORE SAS 64 Sponsored by U. S. Small Business Administration ORANGE COUNTY CHAPTER 114, (714) 550-7369 www.score114.org The subject matter is divided into two sections: THE BUSINESS ORGANIZATION CHOOSING
More informationA Comparison of Entity Taxation
A Comparison of Entity Taxation Sean W. Brewer, CPA Daniel N. Messing, CPA Pugh & Company, P.C. 315 N. Cedar Bluff Road; Suite 200 Knoxville, TN 37923 Sole Proprietorships Single Owner Advantages Easy
More informationSmall Business Tax Saving Strategies for the 2012 Filing Season
Small Business Tax Saving Strategies for the 2012 Filing Season Few business sectors embody today s entrepreneurial spirit, drive for innovation and unwavering perseverance more than the small business
More informationA Guide to LLCs. Forming a Limited Liability Company
A Guide to LLCs Forming a Limited Liability Company Advantages of Forming an LLC Real Estate Investments and LLCs Operating and Maintaining an LLC Comparing LLCs to Other Business Structures Table of Contents
More informationNumber, street, and room or suite no. If a P.O. box, see the instructions. City or town, state or province, country, and ZIP or foreign postal code
Form 1065 Department of the Treasury Internal Revenue Service A Principal business activity U.S. Return of Partnership Income For calendar year 2015, or tax year beginning, 2015, ending, 20. Information
More informationEffective Planning with Life Insurance
Effective Planning with Life Insurance The Tax Considerations... Ken Knox, CLU, ChFC Regional Director The Penn Mutual Life Insurance Company 1304529TM_Sept17 Retirement Planning Case Scenario #1... Client
More informationSmall Business and Work Opportunity Act of 2007 January 12, 2007
Small Business and Work Opportunity Act of 2007 January 12, 2007 Small Business Incentives Section 179 Small Business Expensing. In lieu of depreciation, small business taxpayers may elect to deduct (or
More informationModule 10 S Corporation/Corporation Workbook Introduction
Module 10 Workbook Introduction Running your own business presents many challenges. One of the most difficult is complying with complex and ever-changing tax laws. This small-business tax education program
More information2010 Actual 2011 Proposed Budget* Married [1] Single Rate Married [1] Single Rate
This article contains general information and is not intended to be a specific analysis of the tax issues that could affect an individual s specific circumstances. In 2011, changes in capital gains and
More informationHow To Get A Small Business Tax Credit
2010 FOCUS ON BUSINESS December 1, 2010 FEDERAL TAX UPDATE 2010 SMALL BUSINESS JOBS ACT & MISCELLANEOUS TAX PROVISIONS PRESENTED BY: DAVID P. VENISKEY, CPA TAX PARTNER EFP ROTENBERG, LLP TAX RATES Income
More informationENTITY CHOICE AND EFFECTIVE TAX RATES
ENTITY CHOICE AND EFFECTIVE TAX RATES Prepared by Quantria Strategies, LLC for the National Federation of Independent Business and the S Corporation Association ENTITY CHOICE AND EFFECTIVE TAX RATES CONTENTS
More informationTypes of Business Ownership
Types of Business Ownership Sole Proprietorship A sole proprietorship is the easiest and simplest form of business ownership. It is owned by one person. There is no distinction between the person and the
More informationIssues Relating To Organizational Forms And Taxation. U.S.A. NEW YORK Alston & Bird LLP
Issues Relating To Organizational Forms And Taxation U.S.A. NEW YORK Alston & Bird LLP CONTACT INFORMATION Stephanie Denkowicz/ William Ruehl/ Edward Tanenbaum Alston & Bird LLP 90 Park Avenue New York,
More informationWithumSmith+Brown, PC Certified Public Accountants and Consultants BE IN A POSITION OF STRENGTH. withum.com
1 Objectives for Today s Webinar What are the different types of K-1s? K-1 line items where do they end up? My income is greater than the cash I received why would that be? 2 What is a Schedule K-1 Form?
More informationThe IRA Rollover. Making Sense Out of Your Retirement Plan Distribution
The IRA Rollover Making Sense Out of Your Retirement Plan Distribution Expecting a Distribution? You have been a participant in your employer s retirement plan for a number of years, and you have earned
More informationChapter 18. Corporations: Distributions Not in Complete Liquidation. Eugene Willis, William H. Hoffman, Jr., David M. Maloney and William A.
Chapter 18 Corporations: Distributions Not in Complete Liquidation Eugene Willis, William H. Hoffman, Jr., David M. Maloney and William A. Raabe Copyright 2004 South-Western/Thomson Learning Taxable Dividends
More informationTAX ASPECTS OF MUTUAL FUND INVESTING
Tax Guide for 2015 TAX ASPECTS OF MUTUAL FUND INVESTING INTRODUCTION I. Mutual Fund Distributions A. Distributions From All Mutual Funds 1. Net Investment Income and Short-Term Capital Gain Distributions
More informationUSA Taxation. 3.1 Taxation of funds. Taxation of regulated investment companies: income tax
USA Taxation FUNDS AND FUND MANAGEMENT 2010 3.1 Taxation of funds Taxation of regulated investment companies: income tax Investment companies in the United States (US) are structured either as openend
More information8.0 DISTRIBUTIONS/ACCUMULATED ADJUSTMENTS ACCOUNT (AAA)
Page 1 of 23 Table of Contents 8.0 DISTRIBUTIONS/ACCUMULATED ADJUSTMENTS ACCOUNT (AAA) 8.1 The Accumulated Adjustments Account (AAA) 8.2 The Importance of the Accumulated Adjustments Account 8.3 Do I Have
More informationA partnership having one or more general partners and one or more limited partners.
1. Definition A business association of two or more persons to conduct a business unless formed under any other statute. A partnership having one or more general partners and one or more limited partners.
More informationChoice of Entity: Corporation or Limited Liability Company?
September 2012 Choice of Entity: Corporation or Limited Liability Company? By Gianfranco A. Pietrafesa* Attorney at Law There are many different types of business entities, including corporations, general
More informationS CORP vs. C CORP vs. LLC: WHICH IS RIGHT FOR YOUR BUSINESS?
S CORP vs. C CORP vs. LLC: WHICH IS RIGHT FOR YOUR BUSINESS? One of the significant decisions you face when starting a company is deciding through which type of legal entity you will operate the business.
More informationHow are trusts and estates taxed for income tax purposes?
Income Taxation of Trusts and Estates How are trusts and estates taxed for income tax purposes? What are the general income tax rules for trusts? What are the general income tax rules for estates? What
More informationUnited States Corporate Income Tax Summary
United States Corporate Income Tax Summary SECTION 1: AT A GLANCE CliftonLarsonAllen LLP 222 Main Street, PO Box 1347 Racine, WI 53401 262-637-9351 fax 262-637-0734 www.cliftonlarsonallen.com Corporate
More informationCHOICE OF BUSINESS ENTITY
CHOICE OF BUSINESS ENTITY Presented by James M. Jimenez, Esq. Pacific Business Law Group A Professional Corporation 1601 Cloverfield Boulevard Suite 200 South Tower Santa Monica, California 90401 July
More informationbusiness owner issues and depreciation deductions
business owner issues and depreciation deductions Individuals who are owners of a business, whether as sole proprietors or through a partnership, limited liability company or S corporation, have specific
More informationU.S. Property and Casualty Insurance Company Income Tax Return. For calendar year 2014, or tax year beginning, 2014, and ending, 20.
Form 1120-PC Department of the Treasury Internal Revenue Service A Check if: 1 Consolidated return (attach Form 851). 2 Life-nonlife consolidated return.. 3 Schedule M-3 (Form 1120-PC) attached... U.S.
More informationSOME MAJOR ISSUES TO CONSIDER WHEN INCORPORATING
SOME MAJOR ISSUES TO CONSIDER WHEN INCORPORATING Once the decision to incorporate has been made, there are a number of important issues that require consideration. Like most things in life, incorporating
More informationValuation of S-Corporations
Valuation of S-Corporations Prepared by: Presented by: Hugh H. Woodside, ASA, CFA Empire Valuation Consultants, LLC 777 Canal View Blvd., Suite 200 Rochester, NY 14623 Phone: (585) 475-9260 Fax: (585)
More informationA DOZEN SECRET TECHNIQUES OF A BUSINESS AND TAX ATTORNEY 1. William C. Staley, Attorney www.staleylaw.com 818 936-3490
A DOZEN SECRET TECHNIQUES OF A BUSINESS AND TAX ATTORNEY 1 William C. Staley, Attorney www.staleylaw.com 818 936-3490 Warner Center Estate and Tax Planning Council Woodland Hills October 1, 2008 1 This
More informationS Corporation C Corporation Partnership. Company (LLC)
Description An LLC can only be formed by making appropriate filing with the state (see below). Owners are called members and the LLC may be managed by the members, similar to a partnership, or by managers
More informationTrader Entities. Should You Incorporate Your Trading Business?
Trader Entities Should You Incorporate Your Trading Business? A Little Accountant Humor What is the difference between an introverted accountant and an extroverted accountant? A Little Accountant Humor
More informationModule 10 S Corporation/Corporation Study Guide Introduction
Module 10 Study Guide Introduction Running your own business presents many challenges. One of the most difficult is complying with complex and ever-changing tax laws. This small-business tax education
More information2016 Tax Planning & Reference Guide
2016 Tax Planning & Reference Guide The 2016 Tax Planning & Reference Guide is designed as a reference and is not intended to function as tax advice. Please consult your professional accounting advisor
More informationOverview. Texas Tax Code Chapter 171. Teresa Bostick, Claire Jamal, Jerry Oxford, Martha Preston, Nat Robberson & Jennifer Specchio
Overview Texas Tax Code Chapter 171 Presented by: Organizer: Panelists: Franchise Tax Policy Staff Janet Spies Teresa Bostick, Claire Jamal, Jerry Oxford, Martha Preston, Nat Robberson & Jennifer Specchio
More informationTax Law Snapshot for Small Businesses 2014 Filing Season
Tax Law Snapshot for Small Businesses 2014 Filing Season As the economy recovers, you want to position your business for growth. By combining unrivaled education, training and experience and adherence
More informationTHEME: S CORPORATIONS
THEME: S CORPORATIONS By John W. Day ACCOUNTING TERM: S Corporation Here is a good definition of an S Corporation from the Nolo website: A term that describes a profit-making corporation organized under
More informationOVERVIEW OF THE FEDERAL TAX SYSTEM AS IN EFFECT FOR 2012
OVERVIEW OF THE FEDERAL TAX SYSTEM AS IN EFFECT FOR 2012 Prepared by the Staff of the JOINT COMMITTEE ON TAXATION February 24, 2012 JCX-18-12 CONTENTS Page INTRODUCTION... 1 I. SUMMARY OF PRESENT-LAW FEDERAL
More informationBRIEF OVERVIEW OF PENNSYLVANIA PERSONAL INCOME TAX
CHAPTER 6: BRIEF OVERVIEW OF PENNSYLVANIA PERSONAL INCOME TAX TABLE OF CONTENTS I. OVERVIEW 2 II. TAX RATE...3 III. EIGHT CLASSES OF INCOME 3 A. Gross Compensation... 3 B. Interest... 4 C. Dividends...
More informationSC REVENUE RULING #06-12. All previous advisory opinions and any oral directives in conflict herewith.
State of South Carolina Department of Revenue 301 Gervais Street, P. O. Box 125, Columbia, South Carolina 29214 Website Address: http://www.sctax.org SC REVENUE RULING #06-12 SUBJECT: Tax Rate Reduction
More informationLLC Classification. Tax Law Basics of an LLC Kristy S. Maitre, Tax Specialist Center for Agricultural Law and Taxation
Tax Law Basics of an LLC Kristy S. Maitre, Tax Specialist Center for Agricultural Law and Taxation What is a Limited Liability Company? A creation of an entity based on state law varies from state to state
More informationThe sole proprietor is free to make any decision he or she wishes to concerning the business. The major disadvantage is
Chapter 11 Corporate Governance & Business Organizations An entrepreneur is one who initiates and assumes the financial risks of a new enterprise and undertakes to provide or control its management. One
More informationCorporate Taxation Chapter Seven: Complete Liquidations
Presentation: Corporate Taxation Chapter Seven: Complete Liquidations Professors Wells March 4, 2013 Chapter 7 Corporate Complete Liquidations p.318 The Structure of Part II of Subchapter C Subpart A Effects
More informationLOCATION OF OFFICES TOLL-FREE TELEPHONE NUMBER (DELAWARE ONLY) 1-800 - 292-7826 WILMINGTON. Division of Revenue
STATE OF DELAWARE 2014 S Corporation Reconciliation 2014 And Shareholders Information Return INSTRUCTION HIGHLIGHTS CALENDAR YEAR 2014 AND FISCAL YEAR ENDING 2015 TAX YEAR Section 1158(a) of Title 30 of
More informationSMALL BUSINESS LENDING BILL PROVISIONS September 20, 2010
SMALL BUSINESS LENDING BILL PROVISIONS September 20, 2010 Below is a summary of provisions of the Small Business Lending bill that was debated and passed in the Senate during the week of September 13,
More informationCORPORATE FORMATIONS AND CAPITAL STRUCTURE
2 C H A P T E R CORPORATE FORMATIONS AND CAPITAL STRUCTURE LEARNING OBJECTIVES After studying this chapter, you should be able to 1 Explain the tax advantages and disadvantages of alternative business
More informationForeign Investment in Real Property Tax Act 1980 Buyer AND Seller Beware. By R. Scott Jones, Esq.
Foreign Investment in Real Property Tax Act 1980 Buyer AND Seller Beware By R. Scott Jones, Esq. This article summarizes the tax withholding rules imposed on a buyer and his/her agent when purchasing U.S.
More informationTechnology Companies Practice Tax Practice Goodwin Procter LLP. 2010. Goodwin Procter LLP
Technology Companies Practice Tax Practice 2010. Entity Type Number of People Separate Entity? Limited Liability Formation/ Existence Formalities C-Corporation 1+ Yes Yes Filings/Fees On-going S-Corporation
More informationWhat s the right business entity choice? Entity Choices. State Law vs. Federal Law 5/4/2010. C Corporation. S Corporation LLC.
Winning Business Strategies Webinar Series What s the right business entity choice? Presented by: Michael E. Stover, CPA/ABV & Michael P. Moloney, JD, CFP Entity Choices C Corporation S Corporation LLC
More informationMEXICO TAXATION GUIDE
THE FLORES LAW FIRM Attorney and Counselor at Law 9901 IH-10 West, Suite 800 San Antonio, TX 78230 TEL. (210) 340-3800 FAX (210) 340-5200 MEXICO TAXATION GUIDE I. RECOGNIZED MEXICAN BUSINESS ENTITIES A.
More informationOUT IN FRONT LLC OR INC.? ENTITY SELECTION FOR A SMALL TO MEDIUM SIZED BUSINESS S CORPORATIONS IN DETAIL
OUT IN FRONT LLC OR INC.? ENTITY SELECTION FOR A SMALL TO MEDIUM SIZED BUSINESS S CORPORATIONS IN DETAIL Presented by: William C. Perez Adams and Reese LLP December 17, 2013 Topics to be Discussed: Why
More informationEstate Planning and Income Tax Issues for Nonresident Aliens Owning US Real Estate
Estate Planning and Income Tax Issues for Nonresident Aliens Owning US Real Estate 1. Introductory Matters. Presented by Paul McCawley Greenberg Traurig, P.A. mccawleyp@gtlaw.com 954.768.8269 October 24,
More informationTax Planning Strategies. Sponsored by Watkins Meegan and Success in the City
Tax Planning Strategies Sponsored by Watkins Meegan and Success in the City Goals Introduction Identify at Least One Tax Saver Raise Awareness Have Some Fun Compliance is Important, Too! Please Silence
More information1999 Instructions for Schedule E, Supplemental Income and Loss
1999 Instructions for Schedule E, Supplemental Income Loss Use Schedule E (Form 1040) to report income or loss from rental real estate, royalties, partnerships, S corporations, estates, trusts, residual
More informationCHAPTER 5 Itemized Deductions & Other Incentives
CHAPTER 5 Itemized Deductions & Other Incentives Income Tax Fundamentals 2011 Gerald E. Whittenburg Martha Altus-Buller Learning Objectives Understand nature/treatment of medical expenses Calculate itemized
More informationTrader or Investor? What is the best tax position?
Interactive Brokers presents Trader or Investor? What is the best tax position? Nancy Nelson, CPA, Tax Director, Interactive Brokers Webinar begins @ 12:00 pm EST webinars@interactivebrokers.com www.ibkr.com/webinars
More informationTax Planning for Form 1040
Steven I. Yeh Invest Financial Corp Anthony S. Scalise Financial Advisor SY Associates 1408 Sweet Home Road, Suite 6 Amherst, NY 14228 716-348-3425 steven.yeh@investfinancial.com Tax Planning for Form
More information2014 Business Tax Organizer. Limited Liability Companies, S Corporations, C Corporations & Sole Proprietors
2014 Business Tax Organizer Limited Liability Companies, S Corporations, C Corporations & Sole Proprietors 1553 W. Todd Dr., Suite 112 Tempe, AZ 85283 (480) 517-0988 January 2015 Good Afternoon! We have
More informationObjectives. Discuss S corp fringe benefits.
S Corporations Objectives Define an S corp. Identify the benefits of being an S corp. Determine how an entity elects to be an S corp. Establish how an S corp is taxed. Describe the S corp shareholder s
More informationTHE INCOME TAXATION OF ESTATES & TRUSTS
The income taxation of estates and trusts can be complex because, as with partnerships, estates and trusts are a hybrid entity for income tax purposes. Trusts and estates are treated as an entity for certain
More informationSusan & David Example
Personal Retirement Analysis for Susan & David Example Asset Advisors Example, LLC A Registered Investment Advisor 2430 NW Professional Drive Corvallis, OR 97330 877-421-9815 www.moneytree.com IMPORTANT:
More informationChapter 1 What Is a Partnership? Reading: Paragraphs 101 106. 1. What is a partnership?
Chapter 1 What Is a Partnership? Reading: Paragraphs 101 106. 1. What is a partnership? 2. Define each of the following in terms of the liability of the partners: General partnership Limited partnership
More informationCrunch or Crucible? Upcoming Changes in the Federal Tax Law A Special Edition Tax Guide for Friends and Alumni of Pomona College
Upcoming Changes in the Federal Tax Law A Special Edition Tax Guide for Friends and Alumni of Pomona College Pomona College, Office of Trusts & Estates, 550 N. College Ave., Claremont, CA 91711 www.pomona.planyourlegacy.org
More informationCHOOSING A BUSINESS ENTITY IN TODAY S BUSINESS WORLD
CHOOSING A BUSINESS ENTITY IN TODAY S BUSINESS WORLD Kenneth L. Wenzel Bourland, Wall & Wenzel, P.C. City Center Tower II 301 Commerce Street, Suite 1500 Fort Worth, Texas 76102-4115 The information set
More informationA worker cooperative may find the LLC model to offer many advantages.
Limited Liability Companies as Worker Cooperatives By Sarah Sexton, Law Clerk What is a Worker Cooperative? A worker cooperative is a business comprised of members that are both workers and owners of the
More informationTax Night: Planning for Higher Income, Estate, and Medicare Taxes
Tax Night: Planning for Higher Income, Estate, and Medicare Taxes after the 2012 Elections, Attorney Tax Section of the Los Angeles County Bar Association 1, Business and Tax Attorney Law Office of 818-936-3490
More informationIncluding: Qualified S Trusts S Terminations LLC Conversions Shareholder Agreements Community/Separate Property Issues
Including: Qualified S Trusts S Terminations LLC Conversions Shareholder Agreements Community/Separate Property Issues Robert H. Kroney and M. Seth Sosolik Kroney Morse Lan, P.C. State Bar of Texas - 34
More informationIllinois Institute for Continuing Legal Education. Limited Liability Companies vs. S Corporations. Essential Tax Issues
Illinois Institute for Continuing Legal Education Limited Liability Companies vs. S Corporations Essential Tax Issues By James A. Nepple Nepple Law, PLC 1515 Fourth Avenue, Suite 300 Rock Island, Illinois
More information