Questions from General Taxation

Q: In what year are casualty losses deducted? What choices are available

In what year are casualty losses deducted? What choices are available if the casualty occurs in a presidentially declared disaster area?

Q: What is the difference between accumulated and current earnings and profits?

What is the difference between accumulated and current earnings and profits?

Q: Can a corporation have negative amounts in both its current and accumulated

Can a corporation have negative amounts in both its current and accumulated earnings and profits accounts? Explain.

Q: List five items that are added to a corporation’s taxable income to

List five items that are added to a corporation’s taxable income to determine earnings and profits. List five items that are deducted from a corporation’s taxable income to determine earnings and prof...

Q: Why would a business elect to use the ADS straight-line

Why would a business elect to use the ADS straight-line method to compute regular income tax depreciation rather than the 200 percent declining-balance method allowed under MACRS?

Q: What is a corporate redemption? What are the tax consequences to

What is a corporate redemption? What are the tax consequences to the shareholder in a qualifying redemption? What are they if it is not a qualifying redemption?

Q: What is a corporate liquidation? What are the tax consequences for

What is a corporate liquidation? What are the tax consequences for a corporation that distributes property as part of a complete liquidation? What are the tax consequences to the shareholders?

Q: What is the difference in tax treatment for losses realized in a

What is the difference in tax treatment for losses realized in a partial liquidation and a complete liquidation?

Q: What is the purpose of the personal holding company tax? What

What is the purpose of the personal holding company tax? What is the penalty tax rate that applies to a personal holding company? How does a personal holding company avoid this tax?

Q: What is the purpose of the accumulated earnings tax? What is

What is the purpose of the accumulated earnings tax? What is the penalty tax rate that applies to excess accumulated earnings? How does a company avoid this tax?