When is the accumulated earnings tax imposed?

When is the accumulated earnings tax imposed?

When a corporation has accumulated earnings in excess of $250,000. ($150,000 if it is a PSC personal service corporation)


How do you calculate accumulated taxable income?

TI - federal income taxes - minimum accumulated earnings credit

What is a personal holding company?

Owned more than 50% by 5 or fewer individuals AND has at least 60% of ordinary income from investments.

How is a personal holding company taxed?

A PHC is subject to regular corporate income tax on taxable income. PHC's are also subject to an additional 15% tax on PHC income not distributed.

What amount of a loss is deductible for an S Corporation shareholder?
To the extent of the shareholder's basis. (Any losses beyond that may be carried forward indefinitely.)

What characteristics are necessary for a loss to be deductible on Schedule A?
Unexpected and uncontrollable

In a partnership, what are examples of some "separately-stated items"?
charitable contributions
dividend income
capital losses

When is Form 1041 (Tax Return for Estates and Trusts) due?
April 15th