Corporation U holds 25% of the total stock of Corporation I (holding period over 1 year). Corporation
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Corporation U holds 25% of the total stock of Corporation I (holding period over 1 year). Corporation I makes a taxable dividend out of E&P of $25,000 to Corporation U. Before considering the Corporation I dividend, Corporation U otherwise has an overall current year taxable loss from operations ("CYNOL") of $10,000. Corporation U has a carryforward operating loss ("NOL carryforward") from a prior year of $5,000. There is no other activity for the year. What is Corporation U's recomputed income for purposes of determining its dividend received deduction limit under IRC 246(b)?
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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