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Tax planning for C corporations

TCP Chapter 13 · Area III · Blueprint III.B

Compliance looks back; planning looks ahead. A C corporation's adviser decides when to use loss carryovers, where to put a new plant, when to take income and deductions as rates and laws change, how much estimated tax to pay, and how to structure contributions and distributions after the company is formed. The Blueprint asks you to calculate those savings and derive the results. Tessa and Leo plan for Northwind Outfitters, Inc., a growing C corporation whose CFO is Mr. Brooks and controller is Dana. Figures are for 2026.

In this chapter

1. Getting value from loss carryovers
2. State and local tax planning
3. Timing income and deductions when rates or laws change
4. Estimated tax payments for a C corporation
5. Planning transactions after formation
6. Avoiding the corporate penalty taxes

This chapter has 6 lessons, 50 practice MCQs with explanations and 20 simulations, plus flashcards and a recall sheet.

What this chapter covers

• Capital structure
• compensation versus dividends
• using loss carryovers
• state and local planning
• timing under changing rates
• estimated tax
• §531 and PHC defenses

Chapter 12: Forming and liquidating entities · Chapter 14: Tax planning for S corporations