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Flashcards in REG 13 Deck (15):
1

WHAT IS PERSONAL HOLDING COMPANY TAX

Broadyly looks like its a corporation set up for the benefit of a few people. Levy personal holding company tax on if it doesn't distribute it's income. Ques 1005

2

Undistributed Personal Holding Company Income is taxable income less two things

PHCI = Taxable Income less federal income taxes and cap gains (net of federal taxes)

3

PHCI Personal Holding Company tax may be imposed 2 conditions

More than 60% of income is PHCI
Stock Ownership Test (a few people own). more than 50% by not more than 5 people

4

Personal Holding Company Tax is self-

PHCT is self assessed by a corporation files schedule PH along with 1120

5

WHAT'S THE NUMBER OF A CORPORATE TAX RETURN

1120

6

Can an S corp deduct NOL carryovers?

No

7

Can an S corp Deduct compensation of officers?

Yes

8

Can an S corp deduct charitable contributions?

No

9

Can an S corp deduct entertainment expenses?

Yes 50% not a separately stated item.

10

If you get more money back from your S corporation than your basis, how is it taxed.

As a capital gain.

11

Conditions which cause S corp to be subject to tax on excess passive income.

1. It had pre-S corp earnings from when it was a corp (Acculated E and P)
2. It's passive investment income is more than 25% of it's gross receipts.

12

What is the tax rate for an S corp with built in gains tax.

Highest corporate tax rate.

13

Debt basis is an S Corp is what?

Just the basis that represents money owed to shareholder

14

What order do you reduce basis when there's losses (regular versus debt)

Reduce the regular first, balance to debt, balance if left (i.e., after reducing basis to 0 is called "suspended" and carried forward indefinitely).

15

How long are suspended loses carried forward in an s corp.

Indefinitely.