Outline the differences between IRC Section 311 and 336/337 for non-liquidating and liquidating distributions. In your answers, include the consequences for the tax attributes (E&P, recapture, installment sales)

Outline the differences between IRC Section 311 and 336/337 for non-liquidating and liquidating distributions. In your answers, include the consequences for the tax attributes (E&P, recapture, installment sales)

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter14: Taxes On The Financial Statements

Section: Chapter Questions

Problem 40P

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Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.

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