Which statement is incorrect? a. S corporations are treated as corporations under state law. b. S corporations are treated as partnerships for Federal income tax purposes. c. Distributions of appreciated property are taxable to the S corporation. d. All of these choices are correct.
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Which statement is incorrect? a. S corporations are treated as corporations under state law. b. S corporations are treated as
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- An S corporation is subject to the following tax(es). a.Corporate income tax. b.Built-in gains tax. c.Alternative minimum tax. d.None of these choices are correct.Which of the following is correct? a) An item of gross income that is subject to tax in one scheme will not be taxed by the other schemes. b) An item of income that is exempt from regular income taxation may be subject to capital gains taxation. c) In final income taxation, the taxpayer remits the tax to the government. d) All capital gains from capital assets are subject to capital gains tax.Which circumstance is an example of why Congress established the nonrecognition of gain or loss when an individual forms a corporation? O A taxpayer's choice of entity formation is impeded by Congress. O A substantive change in a taxpayer's investment has occurred. O A substantive change in a taxpayer's investment has not yet occurred. O A taxpayer's economic status has changed.
- Which of the following set of taxes are prohibited? I. Imposition at the same time of income tax and value-added tax on the same transaction.II. Imposition of donor’s tax (a transfer tax) and local transfer tax on the same donation of a parcel of land. A. Only I is prohibited.B. Only II is prohibited.C. Both I and II are prohibited.D. Neither I nor II are prohibited.1. All associations or corporations enumerated under Sec. 30 of the NIRC on exempt association are automatically exempt from income tax. 2. Exemption from tax is privilege viewed with disfavor by the state. As such a taxpayer, to become exempt, must comply with the requirements for tax exemption by laws or regulations. A= 1st statement is true, second statement is false. B=1st statement is false, second statement is true. C= Both statements are false. D= Both statement are true. OA O O D PWhich of the following best describes the tax treatment described in IRC Section 351? Multiple Choice The gain on the transfer of the property is deferred because the transferor retains ownership of the property The gain on the transfer of the property is deferred because the corporation is newly formed The gain on the transfer of the property is accelerated because the transferor retains ownership of the property The gain on the transfer of the property is accelerated because the
- MC: Topic: Income Taxation Which of the following statements is not correct? * The “Benefit-Protection Theory” is the source of the “Doctrine of Symbiotic Relationship” while the Theory of Taxation is based on the Lifeblood Doctrine. The power to tax is unlimited, comprehensive, plenary and supreme that it can reach over into any jurisdiction to seize upon person or property. The Constitution grants exemption from income tax on its revenues and from real property tax on assets used actually, directly and primarily for educational purposes. Tax law can be imposed for a special purpose and not merely aimed at revenue collection. A person cannot object or resist the payment of taxes solely because no personal benefit to him can be pointed as arising from the tax.Explain why the ultimate tax treatment of Net §1231 Gains is more advantageous for flow through entities (partnerships, S corporations, etc.) than it is for C Corporations. Is the treatment of Net §1231 Losses more advantageous for flow through entities than it is for C Corporations?Which statement is true? In computing the net taxable income of a corporation availing of the optional standard deduction, the OSD shall be deducted from the total sales or revenue. A corporate taxpayer is not qualified to avail of NOLCO as this is only applicable to individual taxpayers. The income of a business partnership shall be taxed with the regular corporate income tax and the share of each partner from the income of the partnership shall be subject to the regular income tax as well. Generally, government owned or controlled corporations are taxable.
- In general terms, indicate how the following separate entities are subject to the Federal income tax. a. C corporations are separate taxable entities, (but not district from/distinct from) their shareholders. b. How are partnerships taxed?Income & losses pass-through to the partners/at the partnership level/at the partnership and partner level . c. S corporations ( never/normally/rarely) incur Federal income tax liabilities. d. Fiduciary entities are subject to Federal income tax when income (exceeds expenses/ is distributed to the beneficiaries/ is retained by the entity) .WHAT ARE THE BASIC PRINCIPLES OF A SOUND TAX SYSTEM? HOW ARE THE GOVERNMENT SHOWS THAT SUCH BASIC PRINCIPLES WERE APPLIED IN THE CURRENT TAX SYSTEM WHAT ARE THE DIFFERENCES AND SIMILARITIES OF THE APPLICATION OF OPTIONAL STANDARD DEDUCTION BETWEEN CORPORATION AND INDIVIDUAL? WHAT IS SPECIAL ALLOWABLE ITEMIZED DEDUCTION? IS IT APPLICABLE TO RESIDENT FOREIGN CORPORATION? GIVE 1 EXAMPLE. WHAT IS NET OPERATING LOSS CARRY OVER? CAN IT BE APPLIED TO QUARTERLY INCOME TAX RETURN?True or False:An S Corporation is never subject to any federal income tax.