Taxable & Non-Taxable Entities

Corporate Income Tax - Lecture 6

This week we will look at taxable and non-taxable entities. For nontaxable entities, such as LLCs, S Corporations and Partnerships, only informational returns are submitted to the IRS, those organizations do not pay taxes directly, but their proportionate share of income is passed through to owners whom will pay taxes on their individual tax returns. Corporations on the other hand, are taxed twice, once on the earnings of the corporation, and again to the owners on dividends received. You will examine net profit or loss from a sole proprietorship, and compute FICA payroll taxes and the federal SE tax. In addition, you will learn to differentiate between a distributive share of partnership income and cash flow. Moreover, you will be exposed to adjusting the tax basis in a partnership interest, and apply basis limitations on the deduction of partnership losses. In connection to limited liability companies (LLCs), you will examine how they are treated for federal tax purposes. Also, you will also determine if a corporation is eligible to be an S corporation and apply basis limitations on the deduction of S corporations. Finally, for the taxable entity, a corporation, you will learn to compute the corporate dividends received deduction, and compute the regular tax on corporate taxable income.This week your lecture will revolve around corporate income tax, please reference the following YouTube Video. To make the YouTube video larger, click on the [ ] in the lower right corner.
Corporate Taxation 2014