Student Reviews
( 5 Of 5 )
1 review
Video of The 5 Factors of Section 385 for Classifying as Debt or Equity (U.S. Corporate Tax) in Tax Accounting course by Edspira channel, video No. 22 free certified online
In some cases, the IRS may reclassify a corporation's debt as equity (e.g., if it believes the corporation is merely trying to engage in earnings stripping).
When is something truly debt, and not a capital contribution. The IRS says it is most likely debt when:
1. there is a written promise to pay on a certain date and a fixed, reasonable rate of interest
2. the debt is not subordinate to other liabilities
3. the debt is not convertible to stock
4. shareholders don't hold the exact same proportion of debt that they have in stock
5. the debt-to-equity ratio isn't excessive
—
Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education accessible to all people.
—
SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS:
• A 23-PAGE GUIDE TO MANAGERIAL ACCOUNTING
• A 44-PAGE GUIDE TO U.S. TAXATION
• A 75-PAGE GUIDE TO FINANCIAL STATEMENT ANALYSIS
• MANY MORE FREE PDF GUIDES
http://eepurl.com/dIaa5z
—
GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT
https://edspira.thinkific.com
—
LISTEN TO THE SCHEME PODCAST
Apple Podcasts: https://podcasts.apple.com/us/podcast/scheme/id1522352725
Spotify: https://open.spotify.com/show/4WaNTqVFxISHlgcSWNT1kc
Website: https://www.edspira.com/podcast-2/
—
GET TAX TIPS ON TIKTOK
https://www.tiktok.com/@prof_mclaughlin
—
ACCESS INDEX OF VIDEOS
https://www.edspira.com/index
—
CONNECT WITH EDSPIRA
Facebook: https://www.facebook.com/Edspira
Instagram: https://www.instagram.com/edspiradotcom
LinkedIn: https://www.linkedin.com/company/edspira
—
CONNECT WITH MICHAEL
Twitter: https://www.twitter.com/Prof_McLaughlin
LinkedIn: https://www.linkedin.com/in/prof-michael-mclaughlin
—
ABOUT EDSPIRA AND ITS CREATOR
https://www.edspira.com/about/