True or False:
1) To prevent triple taxation, a corporation is entitled to deduct 50% of the dividends received from other domestic corporations.
2) If the election to amortize organizational expenses is not made in the first eligible year ,the organizational expenses may not be deducted until the coporation ceases to do business and liquidates?
1) False: To prevent double taxation, a corporation is entitled to deduct 50% of the dividends received from other domestic corporations, not triple taxation. To verify this information, you can refer to the Internal Revenue Code (IRC) Section 243.
2) True: If the election to amortize organizational expenses is not made in the first eligible year, the organizational expenses may not be deducted until the corporation ceases to do business and liquidates. This rule is based on the regulations outlined in the IRC Section 248.