C Corporations

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Question

When is a transfer of property for stock tax-free under ?

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Answer

When transferors control at least 80% immediately after the exchange.

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Question

What is the first tier in corporate distribution ordering?

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Answer

Dividends to the extent of current and then accumulated E&P.

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Question

How does apportionment differ from allocation?

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Answer

Apportionment splits business income; allocation assigns nonbusiness income to one state.

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Question

What is nexus in state tax law?

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Answer

A sufficient connection to a state to be subject to tax.

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