Owned by Shareholder A Business Income - $1,000,000 NYS Bond Interest - $2,000 Dividend received from 25% owned Corporation - $8,000 Business Expenses - $150,000 Reasonable Compensation - $500,000 Compensation of Family Members Not Active in the Company - $100,000 Capital Loss – $5,000
2022 Corp X – (Corp. Aggregate Receipts > $27 Mil.)
100% Owned by Shareholder A
Business Income - $1,000,000
NYS Bond Interest - $2,000
Dividend received from 25% owned Corporation - $8,000
Business Expenses - $150,000
Reasonable Compensation - $500,000
Compensation of Family Members Not Active in the Company - $100,000
Capital Loss – $5,000
Interest Expense paid to Bank - $250,000
§179
Bonus Depreciation Heavy Truck - $50,000
Questions:
What is taxable income? _______________ Show calculation.
What is 2022 E&P? _______________ Show calculation.
Does shareholder A receive any dividend? _______________ Show calculation.
If yes to #3, how much? _______________
If aggregated corporate receipts are under $27 million, what is the taxable income? _______________ Show calculation.
Taxable Income -
Any gross income received and utilised to determine your tax liability is referred to as taxable income. It can be stated simply as your adjusted gross income less any deductions. This covers all pay, gratuities, salaries, and bonuses received from employers. Investments and ill-gotten gains are also mentioned.
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