Final Countdown
I am now at the point where I understand enough Corporate and Partnership Tax that I know I will not fail the exam. This is a relief. All else is gravy.
End of transmission.
posted by great sandwich! @ 5:14 PM
NIGHTSOIL
notes from a disgruntled, depressed, soon to be traveler
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Monday, May 02, 2005
End of transmission.
5 Comments:
Good luck Dooooge.
Can you tell me about corporate taxation so I won't fail my exam?
jkf-i cannot tell you anything about corporate tax that will help you with a larry brown exam.
c corp--calculate the e&p before you figure out dividends.
s corp--it passes thru (and it is spelled "thru" in the code. see section 1366).
right...brown exam. maybe if i talk ad nausem about the legislature and how I used to work for the senate, that'll help me on the exam.
Thanks for the basics, I'm ready now!
Yes, more funny stories, I need procrastination material.
i got it now:
calculate current and accumulated E&P, any distribution up to that amount is a dividend and taxed at ordinary income rates (though now not so bad as at 15%, same as cap gains), any distribution in excess of E&P reduces basis in the stock with no immediate tax consequences (best case would be to reduce to 0, then die and get stepped-up basis - ahhh, death as the ultimate tax avoidance technique); any remaining amount of a distribution is taxed as a return of capital and taxed at cap gains rates.
I love having death be a consideration for tax planning. This is fun!
WOOO, HOOO, thanks for the starter, now i feel ready too.
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