REG — Quick Sheet
C Corporation Taxation
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- §351: no gain if transferors control 80% after; services ≠ property
- Permanent differences: muni interest, federal tax expense, key-person life insurance, fines, 50% meals
- Temporary: depreciation, bad debts, warranty accruals
- DRD: <20% → 50%; 20–80% → 65%; ≥80% → 100%
- Distributions: dividend (to E&P) → return of capital (reduces basis) → capital gain
- Distributing appreciated property → corporation recognizes gain (never loss)
- Charitable limit 10% of taxable income, 5-year carryforward