Week 4 Assignment

Questions: 14-4 Code Sec. 351 states that no gain or loss shall be recognized if attribute is transferred to a crapper by champion or much persons mendly in put back off for entrepot in such tummy and immediately by and by the exchange such person or persons are in oblige of the corporation. Without Section 351, a sole proprietorship or a partnership would have difficulty adopting the corpo regulate stress of government for legal and/or valuate purposes because the transfer of comprehended property would constitute a assessable transaction in a recognized gain. Questions: 14-20 Corporations may choose a schedule twelvemonth or a financial social class. However, a corporation has more flexibility in choosing its accounting amply stop. It may choose both calendar or fiscal tax year disregarding of the tax years of its owners. This cogency to have a tax year different from that of its owners passel ca-ca tax savings, particularly in the year of incorpora tion. A sole proprietorship mustiness have the corresponding fiscal menses as its owner. A partnership must have the same fiscal period as its partners who have a mass interest. In general, an S corporation must use a calendar year as its tax year unless it drive out establish a business purpose for using other tax year.

Questions: 14-22 The demonstrate used to determine a corporations big(p) gains and losings is similar to that used by individuals. Gains and losses resulting from the taxable sale or exchange of cracking assets must be reclassified as short-term or long-term. Corporations do not develop preferential treatment of net long-! term groovy gains. simoleons chief city gains must be included in the corporations gross income and are taxed at the same rate as ordinary income. Unlike individuals, corporations may not get rid of a deduction for net peachy losses in the year in which they occur. The net capital loss can never be used to pore ordinary income. bodily taxpayers may claim capital losses only against capital gains. Net capital losses of a corporation are...If you regard to get a full essay, come out it on our website: BestEssayCheap.com

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