When do corporations have to pay estimated taxes?
B) Corporations must pay estimated taxes only if they have a federal income tax liability greater than $10,000 (including the alternative minimum tax). C) Even though a corporation extends its tax return, it still must pay its tax liability for the year by three and one-half months after year-end.
Which of the following is an unfavorable book-tax difference?
Explanation: Any book-tax difference that requires an add-back to book income to compute taxable income is an unfavorable book-tax difference because it requires an adjustment that increases taxable income relative to book income.
Are any of the listed expenses deductible by the corporation?
None of the listed expenses are deductible by the corporation as Powers Enterprises furnishes K-1s to the shareholders who then report items of revenue and expense on their personal income tax returns.
What forms do S corporations use to report their income?
B) Form 1120S used by S corporations to report their income. C) Form 1065 used by partnerships to report their income. D) Form 1040, Schedule C used by sole proprietorships to report their income.
Why is the day of acquisition included in the holding period?
What is an annual exclusion gift?
When is restricted stock included in employee income?
Is gift property taxed?
Is consulting fee included in retirement?
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Why is the day of acquisition included in the holding period?
The day of acquisition is included in the holding period for purposes of determining whether gain is long term or short term.
What is an annual exclusion gift?
1. Annual exclusion gifts will escape gift taxation and will not be included in the donor's gross estate.
When is restricted stock included in employee income?
restricted stock to be included as employee income if there is no longer a substantial risk of forfeiture
Is gift property taxed?
3. Income from gift property will generally be taxed to the donee for income tax purposes.
Is consulting fee included in retirement?
future consulting fees to be paid after retirement to be currently included as employee income
When are shareholders taxed?
A) Shareholders will be taxed when they sell their shares at a gain.
What is a C corporation 1120?
A) Form 1120 used by C corporations to report their income.
Why is an unfavorable temporary book-tax difference so named?
6) An unfavorable temporary book-tax difference is so named because it causes taxable income to decrease relative to book income.
Why do corporations have a larger standard deduction than individual taxpayers?
3) Corporations have a larger standard deduction than individual taxpayers because they generally have higher revenues.
What is Schedule M-1?
34) Schedule M-1 reconciles from book income to bottom line taxable income (the taxable income that is applied to the tax rates to determine the corporation's gross tax liability).
Why is book tax difference unfavorable?
Explanation: Any book-tax difference that requires an add-back to book income to compute taxable income is an unfavorable book-tax difference because it requires an adjustment that increases taxable income relative to book income.
When is Generus tax deduction allowed?
Explanation: The deduction is allowed in the year authorized by the board of directors provided the payment is made within three and a half months after year-end. 23) GenerUs Inc.'s board of directors approved a charitable cash contribution to FoodBank, a qualified nonprofit organization, in November of 2019.
What is the tax rate for a C corporation?
32) Taxable income of all C corporations is subject to a flat 21 percent tax rate.
What is compensation expense?
Explanation: The corporation deducts as compensation expense the excess of the fair market value of the stock acquired over the exercise price on the date the NQO is exercised.
Why is the day of acquisition included in the holding period?
The day of acquisition is included in the holding period for purposes of determining whether gain is long term or short term.
What is an annual exclusion gift?
1. Annual exclusion gifts will escape gift taxation and will not be included in the donor's gross estate.
When is restricted stock included in employee income?
restricted stock to be included as employee income if there is no longer a substantial risk of forfeiture
Is gift property taxed?
3. Income from gift property will generally be taxed to the donee for income tax purposes.
Is consulting fee included in retirement?
future consulting fees to be paid after retirement to be currently included as employee income
