Forms
This tax form is filed by individuals annually to report income tax.
What is Form 1040?
This may be reduced if the S Corporation owns ordinary income assets when stock is gifted to charity.
What is the charitable income tax deduction?
This is the term used to describe how distributions must be made among S Corporation shareholders.
What is pro-rata?
This is the acronym for business income that charity reports as taxable income.
What is UBTI?
This is a type of entity where all of the income and deductions flow through to its owners.
What is a pass-through entity? (or S Corp or partnership)
This tax form is filed by an S Corporation every year.
What is Form 1120-S?
This is currently the highest federal tax rate for individuals and trusts.
What is 37%?
This is the only "exception" to the one-class of stock rule for S Corporations.
What is voting and non-voting stock?
This is the rule that may require a donor advised fund to dispose of gifted stock within 5 years of the date of gift.
What is the excess business holdings rule?
This is a transaction in which a corporation acquires its stock from a shareholder in exchange for cash.
What is a corporate redemption?
This schedule must be provided to all S Corporation shareholders every year.
What is a Form 1120-S K-1 (or What is a K-1)?
This is the general name for the type of assets that generate ordinary income in a company sale.
What are "hot" assets (or ordinary income assets or Section 751 assets)?
These two types of entities can elect to be taxed as an S Corporation under the Internal Revenue Code.
What are corporations and limited liability companies?
This form is filed by charity when it sells a non-cash asset within 3 years of the date of gift.
What is Form 8282?
This is an election to restart the allocation of income and expenses to S Corporation shareholders in the middle of the tax year.
What is a closing of the books election?
This form is filed with an individual's tax return when claiming a charitable deduction for a non-cash gift.
What is Form 8283?
Inventory, equipment, accounts receivable, goodwill
What are examples of "hot" assets (ordinary income assets)?
Capital gains, interest, dividends, rent, royalties, and operating income
What types of income from S Corporations are taxable to charity?
This is a type of fund at NCF that can be used to solve an excess business holdings (EBH) issue.
What is a single charity fund?
This is the minimum percentage of an S Corporation’s outstanding stock required to be transferred in a 30-day period to close the books in the middle of the tax year.
What is twenty percent (20%)?
This document is required to substantiate the value of a non-cash charitable deduction and must be attached to the tax return if the gift is $500,000 or greater.
What is a qualified appraisal?
This is the Code section that requires a charitable deduction reduction if the S Corporation would pay some ordinary income if it sold its assets.
What is Section 170(e)?
The allocation of this causes income recognition to the donor when partnership interest is gifted to charity but not when S Corporation stock is gifted to charity.
What is debt?
This is a type of trust that can solve the problem of excess business holdings for S Corporation stock in a donor advised fund.
What is a voting trust?
This is a type of tax-free reorganization that often happens before the sale of an S Corporation to a third party.
What is an F-reorg?