Effective tax rate on taxable income

The Kammerling Corporation has $250,000 of taxable income. It distributes $100,000 of that income as a dividend to its sole shareholder whose other income puts him in the 35 percent marginal tax bracket. Calculate the effective tax rate on the corporation's $250,000 of taxable income?

1099-DIV forms

Blanton Corporation had a deficit in its current earnings and profits of $36,500 for the current year. It has $75,000 in accumulated earnings and profits. The corporation made two distributions to its shareholders. On April 30, it distributed $40,000, and on November 30, it distributed $20,000. When the corporation sends out its 1099-DIV forms to its shareholders, how much of the distribution will be taxable to the shareholders as dividends?

Tax Liability Comparisons

June and John decide to start a business. They plan to contribute $20,000 in exchange for a 50 percent interest in the business. They expect that the business will make a profit of $80,000 in the first year and that it will not make any cash distributions that year. Excluding the business income, June, who files as the head of household, has $350,000 of other taxable income. John is married and files a joint return. He and his wife have $79,500 worth of other taxable income. They want to know how much tax the business will pay and how much additional tax they will personally pay if they form the business as a partnership, S corporation, or C corporation. Consider only income taxes. B... click for more

A firm has an operating profit for the year of 1994 of $100000.

A firm has an operating profit for the year of 1994 of $100000. It has net operating losses carry forward of -$60000 from 1992 and -$80000 from 1993. Assume its average tax rate is 25%. Further, assume that its operating profit for the year of 1995 is $150000. What is Taxable income in 1995?

Tax: Administrative Procedures - Tax Strategy

The IRS is disputing a deduction reported on your 2005 tax return, which you filed on April 17, 2006. On April 2, 2009, the IRS audit agent asks you to waive the statute of limitations for the entire return so as to give her additional time to obtain a Technical Advice Memorandum. The agent proposes in return for the waiver a "carrot" - the prospect of an offer in compromise - and a "stick" - the possibility of a higher penalty. Although you have substantial authority for the deduction, you consider the following alternatives: (1) waive the statute of limitations for the entire return, (2) waive the statute of limitations for the deduction only, or (3) do not waive the sta... click for more