Module 38: Corporate Taxation

Overview

This module covers corporate taxation and reviews the rules that apply throughout the life cycle of a corporation. The tax consequences of corporate formation are covered first, followed by a review of some of the special rules that apply to the income and deductions of a corporation, including the charitable contributions deduction and the dividends received deduction. The Schedule M-1 reconciliation of book income to taxable income, and the tax concepts of affiliated and controlled groups are next reviewed. This is followed by a review of the tax treatment of corporate distributions to shareholders and their taxability as dividends. Next reviewed are the tax consequences of a complete liquidation, as well as the accumulated earnings and personal holding company penalty taxes. The module then continues with a review of the special rules that apply to S corporations and their shareholders, and the tax effects of corporate reorganizations. The module concludes with a comparison of C corporations, S corporations, and partnerships.

I. Corporations

A. Transfers to a Controlled Corporation (Sec. 351)

B. Section 1244–Small Business Corporation (SBC) Stock

C. Variations from Individual Taxation

D. Affiliated and Controlled Corporations

E. Dividends and Distributions

F. Personal Holding Company and Accumulated Earnings Taxes

G. S Corporations

H. Corporate Reorganizations

II. Comparison of C Corporations, S Corporations, and Partnerships

Key Terms ...

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