Surgent's Understanding Corporate Taxation: Accounting Methods, Deduction Timing, and Losses

Overview

In corporate taxation, the general rule is that a corporation can deduct any expenditure that is ordinary, necessary, and reasonable. However, there are nuances that we need to be aware of, such as a floor on charitable contributions, limits on meals, and even a maximum amount that may be available to take on as a loss from a prior year. In tax planning, simply put, the details matter! In this course, we will explore those details, discuss when a deduction is available for your accrual basis clients, and identify when small contractor exceptions may be helpful. If you want to sharpen your ability to spot opportunities and navigate the fine print for your corporate clients, this course will give you the tools to do just that.

Highlights

Accounting methods and cash method availability
All events test and economic performance
Contingent liabilities
Dividends received deduction
Charitable contributions and limits
Employer-provided meals
Accelerated depreciation — bonus, Section 179, and full expensing of manufacturing property
Bad debt deductions and the service business exception
Strict substantiation requirements
Losses: net operating losses, capital losses, passive activity losses

Prerequisites

A basic understanding of corporate tax laws

Designed For

Accounting and finance professionals with corporate tax clients

Objectives

Identify when a C corporation is eligible for the small contractor exceptions under Section 448
State the elements of the all events test
Recognize charitable contribution deduction restrictions for corporations
Recall the various types of corporate NOL