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Printable Form 1120 (Schedule G) Visalia California: What You Should Know

Side 2) 2. 3660112. SECTION. 1. IN GENERAL. Section 1. This Act shall take effect immediately if it is enacted into law on the date hereof. Section 2. This Act shall be read and construed according to its terms. 3. 3660119. SECTION. 2. S CORPORATION. (a) The term “company” means a corporation. (b) The term “corporation” means an unincorporated association or other entity that is organized for profit and exists for profit for purposes of a commercial activity. (c) (1) An organization, not specifically exempted by the Secretary from taxation under Section 501(c)(3) of the Code or Section 511 of the Internal Revenue Code, whose primary purpose is the organization and operation of a trade or business shall be treated as a “corporation” by reason of its existence as an organization, its ownership or control of capital stock in an unrelated trade or business, or the sale or other transfer of property to an unrelated trade or business. (2) Property used in a trade or business to carry on the trade or business shall not be considered a trade or business for purposes of the definition of that term unless such property is used in connection with the trade or business or in connection with the conduct of activities in connection with a trade or business, if the activities in connection with a trade or business are not commercial conduct. If property used in any trade or business to carry on the trade or business by the organization in its capacity as an owner, officer or agent under this Act or any related statute or regulations is sold, transferred, ceded, assigned, leased or hypothesized by such organization to an unrelated trade or business, the sale, transfer, ceding, assignment, leasing or hyphenation shall be deemed not to constitute the “dividends” or “irrevocable contracts” of the unrelated trade or business; and the sale, transfer, ceding, assignment, leasing or hyphenation shall not be a sale, transfer, ceding, assignment, leasing or hypothesized transfer unless the sale, transfer, ceding, assignment, leasing or hyphenation is for cash in whole or in part.

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