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Taxes

In: Business and Management

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CHAPTER 2
CORPORATIONS: INTRODUCTION AND OPERATING RULES
SOLUTIONS TO PROBLEM MATERIALS

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Topic
Choice of entity: tax and nontax factors in entity selection
Corporation versus S corporation: treatment of operating income and tax-exempt income; no distributions
Corporation versus proprietorship: treatment of losses
Corporation versus partnership: treatment of operating income and STCG
Corporation versus LLC and S corporation
Closely held corporations: shareholder transactions Double taxation
LLCs: single member
LLCs: multi-owner default rule
Accounting periods: general rule and fiscal year limitation
Accounting periods: PSC fiscal year limitation Accounting methods: limitation on cash method Accounting methods: limitation on accrual of expenses to cash basis related party
Net capital gain: corporate and individual tax rates contrasted
Net capital loss: corporation and individual contrasted
Recapture of depreciation: § 291 adjustment
Passive loss rules: closely held C corporations and PSCs contrasted
Passive loss rules: closely held C corporation Status:
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