Charitable Contributions

A corporation cannot deduct charitable contributions that exceed 10% of its taxable income for the tax year. Figure taxable income for this purpose without the following:

• The deduction for charitable contributions
• The dividends-received deduction
• The deduction allowed under section 249 of the Internal Revenue Code
• The domestic production activities deduction
• Any net operating loss carry back to the tax year
• Any capital losses carry back to the tax year

Taken directly from: http://fastforwardacademy.com/index-page-test-subpage-questions-part-businesses.htm 

Business Gift

You can deduct no more than $25 for each business gift you give directly or indirectly to a person during your tax year. A deduction of $25 for each bottle of wine can be taken for a total gift deduction of $75.

http://fastforwardacademy.com/index-page-test-subpage-questions-part-businesses.htm

Farmer's estimated payment

Because two-thirds of Tim's gross income was from farming, he only paid one estimated tax payment for 2010. What is the required annual payment that Tim can make?

Smaller of two-thirds of his total tax for 2010 or 100% of the total tax shown on his 2009 tax return.

http://fastforwardacademy.com/index-page-test-subpage-questions-part-businesses.htm

Built-In Gain

http://cooklaw.co/blog/built-in-gain-s-corporations

Fast Forward Academy

http://fastforwardacademy.com/index-page-test.htm

Uniform Capitalization

"The uniform capitalization (UNICAP) rules require the capitalization of all direct costs and certain indirect costs properly allocable to real property and tangible personal property produced by the taxpayer. For purposes of the uniform capitalization rules, to "produce" means to construct, build, install, manufacture, develop, improve, create, raise or grow [§ 263A(g)(1); Treas. Reg. § 1.263A-2(a)(1)(i)]. Self-constructed assets and property built under contract are treated as property "produced" by the taxpayer and the rules under IRC § 263A(a) govern."

"In addition, § 263A(f) requires the capitalization of interest expense when the taxpayer produces certain property. The interest capitalization rules under Treas. Reg. § 1.263A-8 contain precise definitions of designated property and include inherently permanent structures in the definition of real property. In summary, all real property and certain tangible personal property are subject to the interest capitalization rules. Therefore, any change in the allocation of costs between real and tangible personal property may have an impact on the amount of capitalized interest."

http://www.irs.gov/Businesses/Cost-Segregation-Audit-Technique-Guide---Chapter-6.1-Uniform-Capitalization