Flashcards in Corp: Income Taxes: Revenues Deck (10):
Section 1231 property
assets in trade or bus. used for more than 1 year.
Section 1245 property
depr. personal property used in business (LT assets)
Section 1250 property
bus. land and most real property subject to depr.
Capital assets include...
investments in stocks, bonds, and land (held in hopes of appreciation in value).
The dividends received deduction is based on...
the lower of the dividend or the income.
Are corps allowed a capital loss deduction?
corp. capital loss carryback/carryforward
A net loss is carried back 3 yrs. and carried forward 5 yrs. to reduce other capital gains.
When a loss is carried back and forward, it is always handled as a...
In the sale of Section 1245 assets, what is reported as ordinary income?
1. Any gain up to the amount of the depr. is reported as ordinary income.
2. Any gain in excess of depr. is reported as a Section 1231 gain.