Btax

The definition of a small business corporation (SBC) is a point-in-time test, which gives taxpayers an opportunity to purify the corporation to meet the SBC definition on the date the shares are sold. This is done in order to utilize the lifetime capital gains deduction on the gain from the sale of shares. True False QUESTION 14 The taxpayer has full discretion in the application of loss carryovers with the stipulation that the oldest loss carryover balance must be utilized first. True False QUESTION 15 Altornative minimum tax was added to the Act to ensure that wealthy taxpayers always pay federal income tax of at least 15% of a set amount of taxable income. True False