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.
Learning 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
Major Topics
- 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
