Flashcards in REG 4 Corporation Deck (12):
______ 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
what doesn't apply
business-property adjusted basis immediately before the casualty
apparently the $100 floor and 10% of AGI limitations do not apply
What is goodwill, franchises and trademarks amoritized over
R and D expenses how written off?
Immediately or over a minimum of 60 months
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
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.
Charitable Contributions where do they appear in the equation
Come after the regular deductions, is a special deduction along with Dividend received deduction
Charitable Contribution what's the limitation
10% of adjusted taxable income (ATI)
What's adjusted taxable income?
Net income adjusted for:
Caital Loss Carryback
Charitable Deductions How long carry forward unused deductions.
No carryback is allowed
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%