C-Corporate Tax Questions and Answers

Can a taxpayer carry back capital losses to obtain a refund of prior year tax returns?​
Only C corporations can do this [§1212(a)(1)]. For all other taxpayers (e.g., individuals, trusts, estates), any unused capital losses are carried forward t...
Sun, 5 Feb, 2017 at 8:41 PM
Are small corporations subject to AMT tax?
AMT was repealed for qualifying small corporations for tax years beginning after December 31, 1997 [§55(e)], but some of these businesses continue to comp...
Sun, 5 Feb, 2017 at 9:05 PM
A corporation received land valued at $80,000 from the town as an incentive to develop an industrial park. The town has no ownership interest in the corporation. What is the basis of the land to the corporation?
The basis in the land to the corporation is zero. Under §362(c)(1)(B), property other than money contributed by a nonshareholder has a zero basis to the co...
Sun, 5 Feb, 2017 at 9:06 PM
A C corporation with a fiscal year ending September 30th is going to make an S election. The S corporation will have a calendar year end. What is the status of the short-year return, C or S?
Form 2553 asks for the year end that will be used by the S corporation, which is usually December 31.  It also asks for the effective date of the S status. ...
Sun, 5 Feb, 2017 at 9:07 PM
A corporation paid taxes, penalties and interest to the IRS and state. Can the corporation deduct any of these payments?​
The fines for Federal and state are nondeductible [§162(f)]. Federal income taxes are always nondeductible [§275(a)(1)]. State income taxes are deductible in...
Sun, 5 Feb, 2017 at 9:08 PM