[REG] Corporate Tax payments, NOL, capital loss

Estimated payments, Credits

- Filing: U.S Corporation income tax return, F1120, 15th fourth month after the close

- Extension of six months: F7004

 

Estimated payments of Corporate Tax

- 15th of fourth, sixth, ninth, 12th months 

individual

corporate

	Individual	Corp
Threshold(other than large corp)	1) 90% of current year tax or 2) 100% of last year tax	TI never >1M, 3 tax years 1) 100% of current year tax or 2) 100% of last year tax
Threshold(large corp)	AGI > $75K(2024) 1) 90% of current year 2) 110% of last year	Taxable income ≥ $1M, 3yrs -100% of current year tax - tax due is less than $500 * 500미만 패널티 없음
Regular installment method	분기별 균등분할납부 가능(0)	분기별 균등분할납부 가능(0)
Annulizaiton installment method	차등분할납부 가능(0) 10%-25%-25%-40%	차등 분할 납부 가능(0) 10%-25%-25%-35%

 

Underpayment penalty

- not made on a timely basis

- owed on the return $500 or more

1) penalty for underpaid estimated tax(int in nature: tax + int)

 4/15 2500 * 3.5%*365/365 

 6/15 2500 * 3.5%*305/365

 

2) Penalty for underpaid required tax

0.5% / M (max 25%)

 

3) Penalty for non-filed return

5% / M (max 25%)

 

Tax Credits

General Business Credit

- investment credit, work opportunity tax credit. Alternative fuels credit, m Research and development tax credit

- CB 1yr, CF 20yrs

 

 

Foreign Tax Credit

- Either deduct or credit, not both

- Calculating foreign Tax credit

Lessor of   foreign tax or  foreign tax limitation(FI / WTI* US tax rate)

- CB 1y, CF 10yrs

 

 

Accumulated Earnings Tax or Personal Holding Company tax

C corporations pay regular tax only

some regular tax + AET, some regular tax + PHC, but not both

 

Accumulated Earnings tax

Personal Holding Company tax

- accumulated earnings in excess of $250K - tax rate 20%( highest tax rate in capital gain) - IRS assessed as a result of IRS audit not imposed on - Personal holding companies - Tax exempt corporation - passive foreign investment corp

corporations set up by high tax bracket taxpayers to shelter income through the lower regular tax rate - more than 50% owned by 5 or fewer individual(오너주주?) - having 60% of adjusted ordinary gross income consisting of Passive income Net rent( if less than 50% of ordinary gross income) Interest that is taxable Royalties(not mineral, oil, gas or copyright royalties) Dividends unrelated to domestic corporations - 20% on PHC - self-assessed by filing a separate schedule 1120PH along with F1120

 

 

Net Operating Loss

	Offset other income	CarryBack	CarryForward
NOL (before Dec 31.2017) 2017	X	2	20
NOL (after Dec 31.2017, before Dec 31, 2020) 2018-2020	X	5	Indefinitely
NOL (after Dec 31.2020) 2021~	X	0	Indefinitely
Corporate net capital loss	X	3	5
Individual net capital loss	$3K max	0	Indefinitely