Facts: In 2014 ABC Corporation, a calendar year taxpayer, properly deducted a $100,000 payment as an expense deduction. In late 2014, ABC elected S corporation status as of January 1, 2015. In March 2015, ABC received a recovery of $40,000 of the payment. The accountant for ABC asks “Must the repayment be reported as income by ABC (the S Corp) under that tax benefit doctrine?” If ABC reports income as a result of the refund, this income will be allocated to the shareholders of ABC for year 2015
Words: 320 - Pages: 2
1120S U.S. Income Tax Return for an S Corporation S Corporations or nominated S Corporations by filing or enclosing form 2553 are authorized to file their income tax returns with 1120S U.S. Income Tax Return for an S Corporation. This five-page form requires various financial particulars in Schedule B, K, L, M1, and M2. You may choose to terminate the nomination for being an S corporation using the provision in this form. Please provide accurate and truthful particulars of income, deductions, and
Words: 730 - Pages: 3
----------------------- CH. 13 Workout Problems PARTNERSHIP FORMATION – GENERAL GAIN/LOSS RECOGNITION Example: Two medical doctors, Dr. Do Little and Dr. Do Lot Decide to form a partnership whereby partner Little will have 1/3 interest and partner Lot will have a 2/3 interest in the LittleLot partnership. Partner Little contributes $50,000 while Partner Lot contributes $100,000 of assets described as follows: Dr. Do Little (33 1/3%) Little Lot Cash $50K $50K FMV Partnership int. $50K
Words: 2096 - Pages: 9
deduction limitations of § 280H will apply to the PSC. • An election was made under § 444 to retain its fiscal year ending 1987. p. 2-10 12. In general, a corporation is not allowed to use the cash method of accounting for Federal tax purposes. However, S corporations, qualified personal service corporations, and C corporations engaged in the trade or business of farming or timber are exceptions to this rule. Further, a C corporation with $5 million or less of average gross receipts over the past three
Words: 543 - Pages: 3
Children's upbringing We start in the first text called Why I love my strict Chinese mom from a newspaper. It is an inter-view from The New York Post interviewing Sophia Chua-Rubenfeld who describes her up-bringing as a child. She had a very strict mother who used methods as not letting the children attend sleep-overs, have play dates, be in school plays, complain about not being in a school play. The daughter goes on telling the interviewer that she does not think that her mother rose her badly
Words: 813 - Pages: 4
Executive Officer. Simone Williamson was also brought into the company in 1989 because of her extensive network among the Boston area caterers, and by 1996 she was appointed President of the firm. The company was growing rapidly from the early to late 1990’s, producing revenues of about $1 million in 1991 and reaching $2.7 million in 1997. They went from being a secondary firm who provided help to caterers when they had a bigger than usual event or needed some special service that regular suppliers could
Words: 754 - Pages: 4
a Swedish individual and Plantation Sugar partnership, may elect to be an S corporation, under section 1361(b)(1)(B), 1361(b)(1)(C) and 1361(b)(1)(D)? B. Whether all the shareholders must consent to the election of S status, under section 1362(a)(2)? C. Whether the election of S status is effective if a C corporation does not meet all the requirements in the election year, under Reg §1.1362-6(2)(ii)(B)? D. Whether an S corporation can keep its C corporation tax year, which ends in June 30, without
Words: 1892 - Pages: 8
re connected back to my past with nostalgia. My earliest memory of a song with lyrics is ‘’Reach’’ by S Club 7. Me and my friends used to play it on my sisters old Barbie radio and create our own dance routines in the living room of my house then later put on shows for our families in the green area outside the house. Every time I hear it now I cringe remembering dancing around the green to S Club 7 and laugh at how great dancers we thought we were. I still talk to those friends and we all remember
Words: 267 - Pages: 2
explored the market and determined their niche they should then figure out what type of business structure best suits their service or product. Three types of corporate business structures will be explained which include General Corporations, Subchapter S Corporations, and a Limited Liability Company followed by a discussion of the advantages and disadvantages of each type. General Corporations are one of the most common structures primarily used by business owners. The company is an individual legal
Words: 679 - Pages: 3
liquidity. Disadvantages are that the Firm as a Corporation faces Double taxation, separation of ownership and control. 5. Explain the difference between an S corporation and a C corporation. S corporations do not pay corporate taxes but income passed to its shareholders is taxable. S corporations have a limit on No of shareholders which is 75. S Corp cannot have corporate or foreign stockholders. C corporations pay corporate income taxes. 6. You are a shareholder in a C corporation. The corporation
Words: 954 - Pages: 4
