1. Please describe the concept of “double taxation” and discuss which entity(ies) are subject to this type of taxation. (5 pts)
2. What type of taxpayers are considered “eligible” taxpayers with regard to special ordinary loss treatment of IRC Section 1244 stock? (5 pts.)
3. Please describe how the treatment of capital gains(losses) differ for a C Corporation as compared to an Individual. ( 5 pts.)
4. Please describe the concept of “Depreciation recapture”. ( 5 pts.)
4. What is the purpose of Code Sec. 351 in regard to transfers to corporations?
20. What tax years are available to corporations? How do the options differ from other forms of business organizations?
22. What are the differences in the treatment of capital gains and capital losses of corporations and of individuals?
55. Susan Sweets is a 40 percent shareholder in Acclaim Inc., a theatrical supplies company. She transfers a fully depreciated car with a value of $2,000 to the corporation, but does not receive any consideration for it.
a. What are the tax consequences to Susan?
b. What are the tax consequences to the corporation?
c. What, if any, changes if Susan received another 10 percent stock interest for the car?
62. A corporation has income of $62,000 from operations and a net long-term capital loss of $5,000. What is the corporation’s taxable income for the year?