Tagged: corporations

When is a Form 1125-E Required to be Completed and Attached to a Corporate Return?

SUMMARY Question When is a Form 1125-E Required to be Attached to a Corporate Return (Form 1120, 1120S, 1120-C, 1120-F, 1120-RIC, 1120-REIT)? Answer Form 1125-E must be completed and attached to the Form 1120, 1120S, etc. whenever the total receipts of the Corporation exceeds $500,000 during the tax year (see below for definitions of total receipts) Tax professionals and self-filing...

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Basics of the Dividends Received Deduction for Corporations

The dividends received deduction is a so-called “special deduction” that is allowable only for C Corporation (1120-series) businesses. The dividends received deduction is not allowed for any S Corporation, Partnership, Individual, Trust, etc.[1] The reason for this has everything to do with the real purpose behind the deduction, which is to help corporations avoid being double taxed in circumstances where...

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Jobs Tax Credits: Are Wages Used to Qualify for Credits Still Deductible?

The issue we’re discussing relates to tax credits afforded to businesses based on certain wages and salaries paid to employees that will qualify the business for certain federal tax credits. A few examples of these tax credits are the Work Opportunity Tax Credit,[1] the Empowerment Zone Tax Credit,[2] and the Indian Employment Tax Credit.[3] The question is basically this: if...