Practical Guide to Corporation Taxation

by Daher, Dominic; Joshua Rosenberg; Johnson, Steve

• ISBN13: 9780808027898
• ISBN10: 0808027891
• Format: Paperback
• Copyright: 2012-04-05
• Publisher: Cch Inc

Summary

Practical Guide to C Corporations offer practitioners current and practical explanation and analysis on corporations, giving them the guidance needed to manage the C Corporation election, compliance, tax planning, and life cycle needs. In addition to thorough coverage of how the tax laws impact C corporations, the Practical Guide details corporate formation, distributions, redemptions, liquidations, reorganizaitons and issues related to corporate tax practice and procedure. Practical Guide to C Corporations provides business entity practitioners with complete coverage of C corporation taxation issues.

Table of Contents

Formation of a Corporation
Introduction	p. 101
Qualifying for Code Sec. 351 Treatment	p. 102
Code Sec. 351(a)	p. 102.01
The Operative Provisions	p. 103
The Shareholder	p. 103.01
Consequences to the Corporation	p. 103.02
Contributions to Capital	p. 104
Shareholder Contributions to Capital	p. 104.01
Nonshareholder Contributions to Capital	p. 104.02
Application of the Federal Income Tax to Corporations
Accounting Methods	p. 201
Tax Year	p. 202
Gross Income	p. 203
Generally	p. 203.01
Code Sec. 243 and Related Sections	p. 203.02
Deductions	p. 204
Deductions Generally	p. 204.01
Limitations on Deductions Generally	p. 204.02
Deductions as to Organic Corporate Changes	p. 204.03
Deductions as to Corporation-Shareholder Transactions	p. 204.04
Judicial Anti-Abuse Doctrines	p. 204.05
Tax Rates	p. 205
Rates on Ordinary Income	p. 205.01
Rates on Capital Gains and Treatment of Capital Losses	p. 205.02
Credits	p. 206
Foreign Tax Credit	p. 206.01
General Business Credit	p. 206.02
Credit for Prior Year Minimum Tax Liability	p. 206.03
AMT	p. 207
Generally	p. 207.01
AMTI	p. 207.02
Exemption for Small Corporations	p. 207.03
Recent Legislation	p. 208
Jobs Act	p. 208.01
Tax Relief Act	p. 208.02
Corporate Penalty Taxes
Accumulated Earnings Tax	p. 301
Corporations Subject to the Accumulated Earnings Tax	p. 301.01
Computing Accumulated Taxable Income	p. 301.02
Determining the Corporation's Tax Avoidance Purposes	p. 301.03
Contesting the Accumulated Earnings Tax: Defining Reasonable Needs in More Detail	p. 301.04
Conclusion	p. 301.05
Personal Holding Tax	p. 302
Introduction	p. 302.01
Defining a Personal Holding Company	p. 302.02
Computing Undistributed Personal Holding Company Income	p. 302.03
Considerations When Filing Returns for a Personal Holding Company	p. 302.04
Corporations Excepted from Personal Holding Company Status	p. 302.05
Nonliquidating Distributions
Introduction	p. 401
Earnings and Profits: the General Concept	p. 402
Areas Where Taxable Income Understates Actual Profits	p. 402.01
Areas Where Taxable Income Overstates Actual Profits	p. 402.02
Timing Differences between Accounting for Tax Income and) Earnings and Profits	p. 402.03
Consequences of Distributions	p. 403
Corporate Level Consequences	p. 403.01
Characterization of Distributions at the Shareholder Level	p. 403.02
Final Corporate Level Consequences: Effect of Distributions on Following Year's Accumulated Earnings and Profits	p. 403.03
Constructive Dividends	p. 404
Corporate Shareholders: Dividends Received Deduction and Anti-Abuse Restrictions	p. 405
Dividends Received Deduction	p. 405.01
Anti-abuse Restrictions on the Code Sec. 243 Deduction	p. 405.02
Bootstrap Sales	p. 406
Redemptions
Introduction	p. 501
Attribution	p. 502
Introduction	p. 502.01
Sequential Attribution	p. 502.02
Specifics	p. 502.03
Cutting Off Family Attribution	p. 502.04
Entities Cutting Off Family Attribution	p. 502.05
Treatment of Redemptions: Sale or Exchange or Dividend	p. 503
Complete Termination of Interest: Code Sec. 302 (b) (3)	p. 503.01
Substantially Disproportionate Distribution: Code Sec. 302(b) (2)	p. 503.02
Not Essentially Equivalent to a Dividend	p. 503.03
Redemptions Combined with Stock Sales	p. 503.04
Tax Consequences of Redemptions	p. 504
Sales or Exchanges	p. 504.01
Redemptions Treated as Dividends	p. 504.02
Common Uses of Redemptions to Get Cash from Corporations	p. 504.03
Stock Sales to Affiliated Corporations: Code Sec. 304	p. 505
Introduction	p. 505.01
Brother-Sister Specifics: When Code Sec. 304 Applies	p. 505.02
How Code Sec. 304 Changes the Outcome	p. 505.03
Parent-Subsidiary Transactions	p. 505.04
Concurrent Brother-Sister, Parent-Subsidiary Transactions under Code Sec. 304	p. 505.05
Liquidations and Partial Liquidations
Introduction	p. 601
What is a "liquidation" for Tax Purposes	p. 602
Taxable liquidations	p. 603
Shareholders	p. 603.01
The Liquidating Corporation	p. 603.02
Tax Free Liquidations	p. 604
Qualification	p. 604.01
Consequences to the Parent Distributee	p. 604.02
Consequences to the Liquidating Corporation: Code Sec. 337	p. 604.03
Consequences on Distributions to Minority Shareholders in the Context of a Code Sec. 332 liquidation	p. 604.04
Partial Liquidations	p. 605
Corporate Divisions
Types of Corporate Divisions	p. 701
Spin-Offs	p. 701.01
Split-Offs	p. 701.02
Split-Ups	p. 701.03
Examples	p. 701.04
Purposes of Corporate Divisions	p. 701.05
Statutory Requirements	p. 702
Distribution	p. 702.01
Stock or Securities	p. 702.02
Control	p. 702.03
Device	p. 702.04
Active Business	p. 702.05
Regulatory Requirements	p. 703
Business Purpose	p. 703.01
Continuity of Interest	p. 703.02
Continuity of Enterprise	p. 703.03
Recognition and Nonrecognition of Gain	p. 704
Treatment of Distributee Shareholders	p. 704.01
Treatment of Distributing Corporation	p. 704.02
Procedural Aspects	p. 705
Distributing Corporations	p. 705.01
Significant Distributees	p. 705.02
Acquisitive Corporate Reorganizations
Introduction	p. 801
Acquisitive Reorganizations Involving Only Two Entities	p. 802
Mergers	p. 802.01
Asset Acquisitions in the Absence of a Merger: Code Sec. 368(a)(1)(c)	p. 802.02
Stock Acquisitions: Code Sec. 368 (a) (1) (B)	p. 802.03
Tax Consequences of a Two-Entity (linear) Acquisitive Reorganization	p. 802.04
Triangular Reorganizations	p. 803
Linear Reorganizations Followed by Drop Downs	p. 803.01
Acquisitions Using Stock of A Parent Corporation	p. 803.02
Reverse Triangular Mergers: Code Sec. 368 (a) (2) (E)	p. 803.03
Tax Consequences of Triangular Reorganizations	p. 803.04
Additional Corporate Actions in Conjunction with Reorganizations	p. 804
Full or Partial Drop Downs	p. 804.01
Distributions of Acquired Stock or Assets	p. 804.02
Liquidating Transfers: Step Transaction Doctrine Can Apply	p. 804.03
Acquisitive D Reorganizations	p. 805
Related Corporations
Limitations on Multiple Benefits: Code Sees. 1551 to 1563	p. 901
Code Sec. 1551	p. 901.01
Code Sec. 1561	p. 901.02
Transfer Pricing: Code Sec. 482	p. 902
Need for Code Sec. 482	p. 902.01
Predicates to Application of Code Sec. 482	p. 902.02
Arm's Length Standard	p. 902.03
Reach of Code Sec. 482	p. 902.04
Specific Transaction Types	p. 902.05
Administrative Aspects	p. 902.06
Tax Attributes: Code Sees. 269 and 381 to 384	p. 903
NOLs Generally	p. 903.01
Code Sec. 269	p. 903.02
Code Sec. 381	p. 903.03
Code Sec. 382	p. 903.04
Code Sec. 383	p. 903.05
Code Sec. 384	p. 903.06
Consolidated Returns: Code Sees. 1501 to 1504	p. 904
Overview	p. 904.01
Eligibility and Election	p. 904.02
Procedural Aspects
Filing Returns and Paying Associated Liabilities	p. 1001
Filing Corporate Returns	p. 1001.01
Return Disclosure	p. 1001.02
Reporting as to Tax Shelters	p. 1001.03
Corporate Estimated Tax Payments	p. 1001.04
Examination of Returns	p. 1002
Examination of Corporate Returns Generally	p. 1002.01
Privileges Against IRS Information Gathering	p. 1002.02
Litigation and Assessment	p. 1003
Burden of Proof as to the AET	p. 1003.01
Accuracy-Related Penalties	p. 1003.02
Interest	p. 1003.03
Means-Tested Litigation-Related Provisions	p. 1003.04
Collection of Tax	p. 1004
Trust Fund Recovery "Penalty" and Related Mechanisms	p. 1004.01
Transferee liability and Related Mechanisms	p. 1004.02
Capacity and Identity Issues	p. 1005
Extending the Statute of Limitations	p. 1005.01
Conducting Litigation	p. 1005.02
Table of Internal Revenue Code Sections	p. 343
Index	p. 349
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