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Which of the following items cannot be deducted in the determination of taxable income for a corporation? Net Capital Losses. The lifetime capital gains deduction Charitable contributions. Dividends from taxable Canadian corporations.

why?

Select the best answer. Which of the following statements regarding transfers of property or services is true? For a transfer of property to a corporation, no gain is recognized by the taxpayer if the O A. transferred property is encumbered with liabilities in excess of the taxpayer's basis in the property. O O O If receipt of stock is subject to a substantial risk of forfeiture, income is recognized by th B. recipient in the year the stock is received even though the substantial risk of forfeiture h lapsed. If the contributing partner receives a capital interest in the partnership upon contributi C. services, the contributor will be taxed on the transfer when the contributor actually rec profits. In order for an exchange of services to a partnership for a profit interest to qualify as a D. nontaxable event, the service partner must provide services to the partnership or for it benefit, and the services must be provided by the service partner in his capacity as a p Submit Answers

Which of the following statements regarding losses is true? A. A personal net operating loss may be carried back but not forward to other tax years. B. A sole proprietor may deduct business losses against any form of income. C. In a regular corporation, entity level losses are passed through to the shareholders. D. In a S corporation, entity level losses are fully deductible by the shareholder under any circumstance.

Which of the following causes a temporary difference between taxable and pretax accounting income? A. Investment expenses incurred to generate tax-exempt income. B. MACRS used for depreciating equipment. C. The dividends received deduction. D. Life insurance proceeds received due to the death of an executive.

Which of the following statements with respect to the taxation of capital gains is not correct?     A. When government assistance is provided to acquire a capital asset, it is deducted from the adjusted cost base of the asset.   B. Gains resulting from dispositions of personal use capital assets are subject to tax.   C. When an individual sells shares in a Canadian small business corporation, any resulting capital gain can be deferred if the proceeds are reinvested in shares of another Canadian small business corporation.   D. When a part of a group of identical securities is sold, the adjusted cost base of the shares sold must be based on the average cost of the group.

What type of taxpayers (entities) are affected by the passive loss rules? What is the significance of a closely held corporation with regard to the deductibility of passive losses?

Which of the following statements is correct? When depreciable property is gifted to another individual taxpayer, the depreciation recapture potential is extinguished. When depreciable property is inherited by a taxpayer, the depreciation recapture potential is extinguished. When corporate depreciable property is distributed as a dividend, the depreciation recapture potential is generally not recognized. When depreciable property is contributed to charity, the depreciation recapture potential has no effect on the amount of the charitable contribution deduction. All of the above are correct.

Which of the following items can be included in the definition of investment income for purposes of computing the allowed investment interest deduction only if the trust makes a special election? OA. Qualified dividends B. Interest on corporate bonds C. Farm income D. Income from a working interest in oil and gas where the taxpayer does not materially participate in the activity

An S corporation is subject to the following tax(es). a.Corporate income tax. b.Built-in gains tax. c.Alternative minimum tax. d.None of these choices are correct.