Gilbert Law Summaries on Tax of Business Entities

by Asimow, Michael R.

• ISBN13: 9780314143440
• ISBN10: 0314143440
• Edition: 13th
• Format: Paperback
• Copyright: 2004-06-30
• Publisher: WEST GROUP

Summary

This outline discusses taxation of partnerships, including current partnership income, contributions of property to partnership, sale of partnership interest, distributions, and liquidations. Other subjects covered include corporate taxation, including corporate distributions, sales of stock and assets, and reorganizations, S corporations, and federal income taxation of trusts.

Table of Contents

Taxation of Business Entities Text Correlation Chart	i
Taxation of Business Entities Capsule Summary	i
Approach to Exams	i
Partnership Taxation
Chapter Approach	1	(2)
Introduction	3	(1)
Chart: Outside vs. Inside Basis---A Comparison	3	(1)
Classification of Entity as Partnership or Corporation	4	(2)
Anti-Abuse Regulations	6	(2)
Definition of Partnership	8	(1)
Current Partnership Income	9	(13)
Chart: Checklist of Criteria Justifying Noncalendar Tax Year for Partnerships	16	(6)
Contributions of Property to the Partnership	22	(13)
Chart: Treatment of Contributions to Partnership---A Summary	27	(1)
Chart: Determining Partner's Basis In Partnership (Outside Basis)	28	(7)
Sales of Partnership Interests	35	(6)
Chart: Determining Capital Gain or Loss on Sale of Partnership Interest---An Approach	35	(6)
Partnership Distributions and Basis Adjustments	41	(7)
Chart: Distribution to Partners---A Comparison	45	(3)
Partnership Liquidations	48	(10)
Corporate Taxation---Problems of Entity, Penalty Taxes, and Formation
Chapter Approach	57	(1)
Corporation as a Taxable Entity	58	(10)
Chart: Checklist of Transactions Likely to Trigger Reallocation	62	(6)
Penalty Taxes on Corporations that Do Not Pay Dividends	68	(6)
Chart: Personal Holding Company (``PHC'') Tax---An Approach	72	(2)
Creating the Corporation	74	(14)
Chart: Taxation of Stock Issued in Exchange for Property upon Formation---An Approach	76	(12)
Corporation's Capital Structure---Debt or Equity?	88	(10)
Chart: Stock vs. Debt---Advantages of Each	92	(5)
Corporate Taxation---Distributions
Chapter Approach	97	(1)
Consequences to Shareholders of Corporate Distributions of Cash and Property	98	(28)
Chart: Taxation of Dividends to Corporation	102	(4)
Chart: Checklist of ``Disguised'' Dividends---Examples	106	(13)
Chart: Redemption vs. Dividend---A Summary of Tests	119	(7)
Distributions of Property in Kind---Impact on the Corporation	126	(4)
Stock Dividends	130	(5)
Corporate Taxation---Parent's Purchase of Subsidiary's Stock and Adjustment to Basis of Assets
Chapter Approach	135	(1)
Background	135	(1)
Election by Parent	135	(3)
Consolidated Groups	138	(2)
Corporate Taxation---Reorganizations
Chapter Approach	139	(1)
Divisive Reorganizations	140	(8)
Chart: Checklist of Requirements for a Tax-Free Corporate Division	146	(2)
Liquidation and Reincorporation	148	(1)
Combining Reorganizations	149	(14)
Chart: ``A'' Reorganization (Statutory Merger or Consolidation)	150	(1)
Chart: Disregarded Entity Mergers	151	(1)
Chart: ``B'' Reorganization (Stock-for-Stock Exchange)	152	(1)
Chart: ``C'' Reorganization (Stock-for-Assets Exchange)	152	(5)
Chart: Continuity of Interest Requirement---Sales Affecting Tax-Free Status	157	(3)
Chart: Triangular Reorganizations	160	(2)
Chart: ``A,'' ``B,'' and ``C'' Reorganizations---A Summary	162	(1)
Single Corporation Reorganizations	163	(1)
Boot in Reorganizations	164	(3)
Carry-Over of Tax Attributes	167	(2)
Capitalization of Costs of Corporate Reorganization	169	(2)
Corporate Taxation---S Corporations
Chapter Approach	171	(1)
Introduction	171	(1)
S Corporation Status	172	(4)
Chart: Checklist of Eligibility for Subchapter S Status	174	(2)
Taxation of S Corporations	176	(7)
Review Questions and Answers	183	(32)
Exam Questions and Answers	215	(24)
Table of Citations to Internal Revenue Code (I.R.C.)	239	(4)
Table of Citations to Revenue Rulings	243	(2)
Table of Cases	245	(4)
Index	249