Which of the following is true? The MCIT applies only when income is zero or when there is an operating loss. A partnership organized under our domestic laws is not a domestic corporation for purposes of taxation. Non-resident foreign corporations are subject to minimum corporate income tax. The MCIT is not due when RCIT is greater than MCIT.

Which of the following is true? The MCIT applies only when income is zero or when there is an operating loss. A partnership organized under our domestic laws is not a domestic corporation for purposes of taxation. Non-resident foreign corporations are subject to minimum corporate income tax. The MCIT is not due when RCIT is greater than MCIT.

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter2: Gross Income And Exclusions

Section: Chapter Questions

Problem 4MCQ

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Identify the false statement: A. Dividends earned by a resident foreign corporation from a domestic corporation is inter-corporate dividend exempt from income tax. B. Dividends earned by a domestic corporation from a foreign source is inter-corporate dividend exempt from income tax, with certain conditions. C. Dividends earned by a domestic corporation from another domestic corporation is inter-corporate dividend exempt from income tax. D. A corporation may be formed by one person only. E. Every partnership shall be taxed in the same manner as a corporation. F. The share of a partner in the income of a professional partnership shall be subject to regular income tax. G. None of the above.
Which corporate taxpayer is not subject to regular income tax? Resident foreign corporation Domestic corporation Non-resident foreign corporation Business partnership
In general terms, indicate how the following separate entities are subject to the Federal income tax. a. C corporations are separate taxable entities, (but not district from/distinct from) their shareholders. b. How are partnerships taxed?Income & losses pass-through to the partners/at the partnership level/at the partnership and partner level . c. S corporations ( never/normally/rarely) incur Federal income tax liabilities. d. Fiduciary entities are subject to Federal income tax when income (exceeds expenses/ is distributed to the beneficiaries/ is retained by the entity) .
Which of the following is true? Non-profit corporations are exempt from corporate income tax. Domestic corporations shall choose ether MCIT or RCIT. Whenever MCIT is payable, there is a Net Operating Loss Carry-Over. MCIT does not apply to foreign corporations.
What tax remedy is provided by the Tax Code to minimize the impact of indirect double taxation on those income that have already been subject to tax in other countries but still taxable in the Philippines? Allowable deduction Tax credit Tax refund Tax exemption All of the following, except one, are considered as “constructive receipts” for income tax purposes. Which is the exception? Interest credited on bank savings account. The share of the profits of a partner in a general professional partnership. Bond interest coupons which have matured but which have not been redeemed. Property borrowed by the taxpayer.
Why would smaller partnerships and other businesses for that matter use only the tax basis of accounting, which does not follow GAAP?
Which statement is true? In computing the net taxable income of a corporation availing of the optional standard deduction, the OSD shall be deducted from the total sales or revenue. A corporate taxpayer is not qualified to avail of NOLCO as this is only applicable to individual taxpayers. The income of a business partnership shall be taxed with the regular corporate income tax and the share of each partner from the income of the partnership shall be subject to the regular income tax as well. Generally, government owned or controlled corporations are taxable.
Which of the following taxpayers cannot claim deductions from gross income? General professional partnership Domestic corporation Resident foreign corporation Non-resident foreign corporation
Which one of the following statements regarding partnership taxation is incorrect? a.Partnership income is comprised of ordinary partnership income or loss and separately stated items. b.A partnership is required to file a return with the IRS. c.A partner's profit-sharing percentage may differ from the partner's loss-sharing percentage. d.A partnership is a tax-paying entity for Federal income tax purposes.
For Federal income tax purposes, a distribution from a partnership to a partner is treated the same as a distribution from a C corporation to its shareholders. True False
Unless a “check the box” election is made on Form 8832, a Limited Liability Company (LLC) formed in the United States with a single member is disregarded as a separate entity for US Income Tax purposes. (TRUE or FALSE)
Which of the following income derived from within the Philippines by a resident individual is not subject to the rates in Section 24(a) of the NIRC? a. Salary received by a managing director of a general professional partnership. b. A passive income in the form of a prize win in a raffle amounting to P4,000.00. c. A gain from sale of his personal motor vehicle as another income of a taxpayer who is a compensation earner. d. A gain on sale of a real property for private use of the family of the taxpayer.