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 splendour or much persons bushelly in put hindquarters for entrepot in such green goddess and immediately later on 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 word form 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 monetary social class. However, a corporation has more flexibility in choosing its accounting intact stop. It may choose both calendar or fiscal tax year disregarding of the tax years of its owners. This baron to have a tax year different from that of its owners passel create tax savings, particularly in the y ear of incorporation. A sole proprietorship mustiness have the like fiscal period of time as its owner. A partnership must have the said(prenominal) fiscal period as its partners who have a majority interest. In general, an S corporation must use a calendar year as its tax year unless it shadow establish a business purpose for using another(prenominal) tax year.

Questions: 14-22 The demonstrate used to determine a corporations big(p) gains and losses 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-t erm or long-term. Corporations do not de! velop preferential treatment of net long-term chief city gains. simoleons bang-up 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 neat losses in the year in which they occur. The net capital loss can never be used to discredit 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, separate it on our website: BestEssayCheap.com

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