do the rules that apply to individuals with regards to tax exempt (free) interest also apply to c-corps? I've spent a good deal of time researching this, but do not feel comfortable with the results. Any help?
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Dave, EA -
TTB, page 18-9, "Unless otherwise stated in the tax code, rules on income and deductions for corporations are the same as for individuals."
There is nothing in the code that says C corporations are subject to tax on tax exempt interest income. -
The tax exempt income only shows up on the 1120, page 4, Sch-M1, line 7, as an adjustment to balance to the books in Sch-L.Comment
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