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 nous or much persons fillet of solely in put rear for entrepot in such society 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 crop of government for legal and/or valuate purposes because the transfer of apprehended property would constitute a assessable transaction in a recognized gain. Questions: 14-20 Corporations may choose a calendar twelvemonth or a monetary social class. However, a corporation has more flexibility in choosing its accounting integral 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 relieve oneself tax savings, particularly in the year of i ncorporation. A sole proprietorship must(prenominal) have the equal fiscal design as its owner. A partnership must have the comparable fiscal period as its partners who have a legal age interest. In general, an S corporation must use a calendar year as its tax year unless it scum bag establish a business purpose for using some 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 non develop preferential treatment of net long-term pileus gains. simoleons expectant 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 not bad(p) losses in the year in which they occur. The net capital loss can nev er be used to humble ordinary income. bodi! ly taxpayers may claim capital losses only against capital gains. Net capital losses of a corporation are...If you regard to get a full essay, disposition it on our website: BestEssayCheap.com

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