There Any Depreciation Recapture Under a Code free essay sample

14. Is there any depreciation recapture under a Code Sec. 351 exchange? Under Code Sec. 351 if gain is recognized on the exchange because boot is received, it is characterized as ordinary income to the extent of depreciation recapture. 20. What tax years are available to corporations? How do the options differ from other forms of business organizations? The two tax years available to corporations are fiscal or calendar. However other business forms, such a sole proprietorships or partnerships limited to filing the regular calendar year.However there is an opportunity which allows partners to use fiscal year. The tax year can be the one used by the partners with the most controlling interest. I have worked for numerous companies whose fiscal year ends March 31 vs. December 31. This again is the flexibility enjoyed by corporate entities. 22. What are the differences in the treatment of capital gains and capital losses of corporations and of individuals? Corporations do not receive preferential treatment of net long-term capital games. We will write a custom essay sample on There Any Depreciation Recapture Under a Code or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Unlike individuals, corporations may not take a deduction for net capital losses in the year in which they occur. The net capital loss can never be used to reduce ordinary income. Corporate taxpayers can claim capital losses only against capital gains. Corporate capital loss carryovers become short-term losses regardless of their original status. They are carried back three years to offset net capital gains claimed in those years, or they can be carried forward five years. 55. Susan Sweets is a 40 percent shareholder in Acclaim Inc. a theatrical supplies companyThe receipt of stock would depend on the value of the stock at the time of the transfer. If the value exceeds $2000, the difference over would be included as income. 62. A corporation has income of $62,000 from operations and a net long-term capital loss of $5,000. What is the corporations taxable income for the year? Corporations may not take a deduction for net capital losses in the year in which it occurred. Therefore $62,000 would be the taxable income for the year. Top of Form