Flashcards in Taxes: Income & Basis Deck (5)
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1
Taxes:
Income & Basis
Operating Rules
Operating Rules
- S Corp: year end consistent with shareholders
- Calendar year-end is general default
- may elect another if no more than 3 months of deferral
2
Taxes:
Income & Basis
Reporting Operations
Reporting Operations
- may use cash basis unless tax shelter
- reports TI and separately stated items on K-1
- not entitled to most corporate deductions
- don't pay AMT, PHC, or ACE
- S corp's use tax elections
3
Taxes:
Income & Basis
Flow-Through to Shareholders
Flow-Through to Shareholders
- if interest changes during year, calc on daily basis
= (annual income / days in year)*days prior to change*interest
4
Taxes:
Income & Basis
Adj Basis
Adj Basis
+ contributions of capital
+ share of income
- distributions to shareholder
- share of loss
5
