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Flashcards in REG 4 Corporation Deck (12):
1

______ of meals and entertainment for employees is deductible
______ of a skybox

50% unless you report it to them as income
Can only deduct up to the most expensive non-luxury seat

2

Casualty Losses
________ basis
what doesn't apply

business-property adjusted basis immediately before the casualty
apparently the $100 floor and 10% of AGI limitations do not apply

3

What is goodwill, franchises and trademarks amoritized over

15 years

4

R and D expenses how written off?

Immediately or over a minimum of 60 months

5

How are dividends handled that are paid to a corporation

Reportable in gross income
BUT... Get dividends received deductions
Own less than 20% then 70% deductible
Own greater than 20% to 80% then 80% deductible
Own greater than 100% then 100% deductible

6

When does investor not qualify for DRD?

If dividends are from a Foreign corporation (irs didn't tax the investee)
Borrowed money to buy the investment (you get the interest expense deduction)
Get dividend from a tax exempt org such as muni bonds
Owned for less than 46 days.

7

Charitable Contributions where do they appear in the equation

Come after the regular deductions, is a special deduction along with Dividend received deduction

8

Charitable Contribution what's the limitation

10% of adjusted taxable income (ATI)

9

What's adjusted taxable income?

Net income adjusted for:
Charity
DRD
NOL Carryback
Caital Loss Carryback

10

Charitable Deductions How long carry forward unused deductions.

5 years
No carryback is allowed

11

You know that DRD and foreign corporations not being applicable?

Well it it is allowable if the domestic corp owns at least 10% of the foreign corp and the foreign subject to US federal income tax, effectively connected with trade or business in US, foreign corp. is not a personal holding company

basically if they can tax it here, eligible for DRD if domestic corp owns more than 10%

12

What type of interest can a corporation not deduct?

On money borrowed to purchase tax-exempt investments.