ANCT 1347 Research Assignment
1. ABC, Inc. sustained a Net Operating Loss in 2011. If ABC, Inc. Does not elect to forego the carryback period, how many preceding tax years is ABC allowed to carryback its net operating loss?
2. Under what Internal Revenue Code section is a person allowed to transfer property to a corporation in exchange for stock without recognizing any gain or loss, if the person transferring property to such corporation, immediately following the transfer of property, obtains control of the corporation (80% or more ownership) as a result of the stock exchanged for the property?
3. In 2011 XYZ Corp has taxable income before the charitable contribution deduction, dividends received deduction, net operating loss carryback, and capital loss carryback of $150,000. In 2011, XYZ made a cash contribution to the American Red Cross of $20,000. What is XYZ's deductible charitable contribution for 2011?
4. Reed Corp has $20,000 of losses from the sale of capital assets in 2011. What will be Reed Corp's capital loss deduction if the company does not have any capital gains in 2011?
5. In general, what is the maximum number of years that a corporation is allowed to carryback a net capital loss? What is the maximum number of years that a corporation is allowed to carryforward a net capital loss?
6. In 2011 John Smith, a non-shareholder of ABC Corp, contributed $100,000 to the capital of ABC Corp. How much income does ABC Corp have to recognize from John Smith's contribution to the corporation?
7. XYZ Corp received $200,000 in dividends from ABC Corp in 2011. XYZ Corp has owned 15% of ABC Corp since purchasing the stock of ABC in 2002. In general, how much income does XYZ Corp have to recognize in 2011 from the receipt of the dividend from ABC Corp. Both corporations are domestic corps and neither corporation is an insurance company.
8. Sam owns 62% of ABC Corp. In 2011 ABC Corp sold Sam a piece of land for $100,000. ABC Corp's adjusted basis in the land was $150,000. What is the amount of loss on the property that ABC can deduct on its 2011 Federal Income Tax return?
9. Yada Corp has alternative minimum taxable income of $100,000 in 2011. What is Yada Corp's alternative minimum tax exemption amount? (Yada Corp is not considered a small corporation for alternative minimum tax purposes)
10. What is the tentative alternative minimum tax rate for corporations?