Answered step by step
Verified Expert Solution
Question
1 Approved Answer
True or False: A business cannot be taxed as a corporation unless it is incorporated under local law. A limited liability company will always be
True or False:
- A business cannot be taxed as a corporation unless it is incorporated under local law.
- A limited liability company will always be taxed as a corporation.
- A corporation must adopt a natural business year.
- There is no tax on the first $400 of corporate taxable income.
- A disadvantage of corporate structure is that the C corporations gains and losses do not pass through to shareholders.
- A partnership is not a tax-paying entity.
- The dividends received deduction is 50 percent of dividends received out of the earnings and profits of taxable, domestic corporations.
- Code Sec. 351 is an elective provision.
- When a corporation receives property from a shareholder in exchange for stock its basis equals that of the shareholder, increased by any gain recognized by the shareholder.
- In order to fall within the parameters of Code Sec. 351 (i.e., to achieve tax-free treatment), when incorporating a business a transferor may not receive securities.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started