Refer to the facts in the preceding problem. In 2019, the CFCs income was $600,000, none of
Question:
Refer to the facts in the preceding problem. In 2019, the CFC’s income was $600,000, none of which was subpart F income or GILTI, and it distributed a $300,000 dividend to its shareholders ($120,000 to Jumper). How much of this actual dividend is taxable to Jumper in 2019? Compute Jumper’s basis in its CFC stock at the beginning of 2020.
Data from Prob. 28
Jumper Inc., which has a 21 percent tax rate, owns 40 percent of the stock of a CFC. At the beginning of 2018, Jumper's basis in its stock was $660,000. The CFC's 2018 income was $1 million, $800,000 of which was subpart F income. The CFC paid no foreign income tax and distributed no dividends.
DividendA dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Principles Of Taxation For Business And Investment Planning 2019 Edition
ISBN: 9781260161472
22nd Edition
Authors: Sally Jones, Shelley C. Rhoades Catanach, Sandra R Callaghan