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Can a Corporation that comes into substantial profit from the sale of an asset use the profits to buy back outstanding shares to avoid capital gains tax?
Wiki User
∙ 17y ago
No. The sale of a property that results in a profit results in a capital gain. Capital Gains are reportable on the 1120 and the state form (if the state has an income tax). The repurchase of shares (buy-backs) are not a taxable transaction.
Wiki User
∙ 17y ago
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What is the word for money used to buy stocks that may provide substantial future profits?
The term used for money that is used to buy stocks that may provide substantial future profits, is capital.
How a corporation raises capital?
Corporations raise capital by borrowing in from other people or companies. They also may use profits the company makes or sell stock.
How does a corporation raise capital?
Corporations raise capital by borrowing in from other people or companies. They also may use profits the company makes or sell stock.
A corporation gives out its profits as dividends paid to its?
Stockholders
Who decides how profits should be spent in a corporation?
Ultimately, the Board of Directors decides how profits should be spent in a corporation.
What is the proper word to describe money used to buy stocks that may provide substantial future profits profits?
Money used to buy stocks that may provide substantial future profits are called investments.
An ownership position in a corporation and represents a claim in the corporation's assets and profits?
Stockholder.
Profits of a corporation that is distributed to its stockholders?
dividends
What signifies an ownership position in a corporation and represents a claim in the corporation's assets and profits?
Stockholder.
Signifies an ownership position in a corporation and represents a claim in the corporation's assets and profits?
Stockholder.
What is the proper word to describe money used to buy stocks that may provide substantial future profits?
Money used to buy stocks that may provide substantial future profits are called investments.
What is the goals of a Corporation?
The goal of a corporation is to maximize profits. Furthermore, the goal of a publicly traded corporation is to maximize value for its shareholders.
