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Corporate tax in the United States
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Corporate tax is imposed in the United States at the federal, most state, and some local levels on the income of entities treated for tax purposes as corporations. Federal tax rates on corporate taxable income vary from 15% to 35%. State and local taxes and rules vary by jurisdiction, though many are based on federal concepts and definitions. Taxable income may differ from book income both as to timing of income and tax deductions and as to what is taxable. Corporations are also subject to a federal Alternative Minimum Tax and alternative state taxes. Like individuals, corporations must file tax returns every year. They must make quarterly estimated tax payments. Controlled groups of corporations may file a consolidated return.
Some corporate transactions are not taxable. These include most formations and some types of mergers, acquisitions, and liquidations. Shareholders of a corporation are taxed on dividends distributed by the corporation. Corporations may be subject to foreign income taxes, and may be granted a foreign tax credit for such taxes.
Shareholders of most corporations are not taxed directly on corporate income, but must pay tax on dividends paid by the corporation. However, shareholders of S corporations and mutual funds are taxed currently on corporate income, and do not pay tax on dividends.
In 2014 the United States had the third highest general top marginal corporate income tax rate in the world at 39.1 percent (consisting of the 35% federal rate plus a combined state rate), exceeded only by Chad and the United Arab Emirates.[1] However, the average corporate tax rate in 2011 dipped to 12.1%, its lowest level since before World War I, largely due to the great recession and a bonus depreciation tax break.[2]
Contents
[hide]
1 Overview
2 State and local income taxes
3 History
4 Entity classification
5 Taxable income
6 Tax rates
6.1 Federal tax rates
6.2 State income tax rates
7 Tax credits
8 Tax deferral
9 Interest deduction limitations
10 Other corporate events
10.1 Formation
10.2 Acquisitions
10.3 Reorganizations
11 Distribution of earnings
12 Earnings and profits
13 Liquidation
14 Foreign corporation branches
15 Consolidated returns
16 Transfer pricing
17 Alternative taxes
18 Tax returns
19 Further reading
20 References
Overview[edit]
Corporate income tax as a share of GDP, 1946–2009.
Corporate income tax is imposed at the federal level[3] on all entities treated as corporations (see Entity classification below), and by 47 states and the District of Columbia. Certain localities also impose corporate income tax. Corporate income tax is imposed on all domestic corporations and on foreign corporations having income or activities within the jurisdiction. For federal purposes, an entity treated as a corporation and organized under the laws of any state is a domestic corporation.[4] For state purposes, entities organized in that state are treated as domestic, and entities organized outside that state are treated as foreign.[5]
Some types of corporations (S corporations, mutual funds, etc.) are not taxed at the corporate level, and their shareholders are taxed on the corporation's income as it is recognized.[6] Corporations which are not S Corporations are known as C corporations.
Domestic corporations are taxed on their worldwide income at the federal and state levels.[7] Corporate income tax is based on net taxable income as defined under federal or state law. Generally, taxable income for a corporation is gross income (business and possibly non-business receipts less cost of goods sold) less allowable tax deductions. Certain income, and some corporations, are subject to a tax exemption. Also, tax deductions for interest and certain other expenses paid to related parties are subject to limitations.
Corporations may choose their tax year. Generally, a tax year must be 12 months or 52/53 weeks long. The tax year need not conform to the financial reporting year, and need not coincide with the calendar year, provided books are kept for the selected tax year.[8] Corporations may change their tax year, which may require Internal Revenue Service consent.[9] Most state income taxes are determined on the same tax year as the federal tax year.
[show]Table of corporate income taxes
as a percentage of GDP
for the US and OECD countries, 2008[10][11]
Country
Tax/GDP
Country
Tax/GDP
Norway 12.4 Switzerland 3.3
Australia 5.9 Netherlands 3.2
Luxembourg 5.1 Slovak Rep. 3.1
New Zealand 4.4 Sweden 3.0
Czech Rep. 4.2 France 2.9
South Korea 4.2 Ireland 2.8
Japan 3.9 Spain 2.8
Italy 3.7 Poland 2.7
Portugal 3.7 Hungary 2.6
Britain 3.6 Austria 2.5
Finland 3.5 Greece 2.5
Israel 3.5 Slovenia 2.5
OECD avg. 3.5 United States 2.0
Belgium 3.4 Germany 1.9
Canada 3.4 Iceland 1.9
Denmark 3.3 Turkey 1.8
Federal corporate income tax is imposed at graduated rates. The lower rate brackets apply to lower rates of income when compared to higher tax brackets that coincide with higher rates of taxable income. All taxable income is subject to tax at 34% or 35% where taxable income exceeds $335,000. Tax rates imposed below the federal level vary widely by jurisdiction, from under 1% to over 16%. State and local income taxes are allowed as tax deductions in computing federal taxable income.
Groups of companies are permitted to file single returns for the members of a controlled group or unitary group, known as consolidated returns, at the federal level, and are allowed or required to do so by certain states. The consolidated return reports the members' combined taxable incomes and computes a combined tax. Where related parties do not file a consolidated return in a jurisdiction, they are subject to transfer pricing rules. Under these rules, tax authorities may adjust prices charged between related parties.
Effective corporate tax rate for OECD countries averaged between 2000 and 2005. The effective tax rate equals corporate taxes/corporate surplus.[12]
Shareholders of corporations are taxed separately upon the distribution of corporate earnings and profits as a dividend. Tax rates on dividends are at present lower than on ordinary income for both corporate and individual shareholders. To ensure that shareholders pay tax on dividends, two withholding tax provisions may apply: withholding tax on foreign shareholders, and “backup withholding” on certain domestic shareholders.
Corporations must file tax returns in all U.S. jurisdictions imposing an income tax. Such returns are a self-assessment of tax. Corporate income tax is payable in advance installments, or estimated payments, at the federal level and for many states.
Corporations may be subject to withholding tax obligations upon making certain varieties of payments to others, including wages and distributions treated as dividends. These obligations are generally not the tax of the corporation, but the system may impose penalties on the corporation or its officers or employees for failing to withhold and pay over such taxes.
State and local income taxes[edit]
See also: State income tax
Nearly all of the states and some localities impose a tax on corporation income. The rules for determining this tax vary widely from state to state. Many of the states compute taxable income with reference to federal taxable income, with specific modifications. The states do not allow a tax deduction for income taxes, whether federal or state. Further, most states deny tax exemption for interest income that is tax exempt at the federal level.
Most states tax domestic and foreign corporations on taxable income derived from business activities apportioned to the state on a formulary basis. Many states apply a "throw back" concept to tax domestic corporations on income not taxed by other states. Tax treaties do not apply to state taxes.
Under the U.S. Constitution, states are prohibited from taxing income of a resident of another state unless the connection with the taxing state reach a certain level (called “nexus”).[13] Most states do not tax non-business income of out of state corporations. Since the tax must be fairly apportioned, the states and localities compute income of out of state corporations (including those in foreign countries) taxable in the state by applying formulary apportionment to the total business taxable income of the corporation. Many states use a formula based on ratios of property, payroll, and sales within the state to those items outside the state.
History[edit]
The U.S. federal effective corporate tax rate has become much lower than the nominal rate because of tax shelters such as tax havens.
The first federal income tax was enacted in 1861, and expired in 1872, amid constitutional challenges. A corporate income tax was enacted in 1894, but a key aspect of it was shortly held unconstitutional. In 1909, Congress enacted an excise tax on corporations based on income. After ratification of the Sixteenth amendment to the U.S. Constitution, this became the corporate provisions of the federal income tax.[14] Amendments to various provisions affecting corporations have been in most or all revenue acts since. Corporate tax provisions are incorporated in Title 26 of the United States Code, known as the Internal Revenue Code. The present rate of tax on corporate income was adopted in the Tax Reform Act of 1986.[15]
In 2010, corporate tax revenue constituted about 9% of all federal revenues or 1.3% of GDP.[16]
Entity classification[edit]
Main article: Entity classification election
Business entities may elect to be treated as corporations taxed at the entity and member levels or as "flow through" entities taxed only at the member level. However, entities organized as corporations under U.S. state laws and certain foreign entities are treated, per se, as corporations, with no optional election. The Internal Revenue Service issued the so-called “check-the-box” regulations in 1997 under which entities may make such choice by filing Form 8832. Absent such election, default classifications for domestic and foreign business entities, combined with voluntary entity elections to opt out of the default classifications (except in the case of “per se corporations” (as defined below)).[17] If an entity not treated as a corporation has more than one equity owner and at least one equity owner does not have limited liability (e.g., a general partner), it will be classified as a partnership (i.e., a pass-through), and if the entity has a single equity owner and the single owner does not have limited liability protection, it will be treated as a disregarded entity (i.e., a pass-through).
Some entities treated as corporations may make other elections that enable corporate income to be taxed only at the shareholder level, and not at the corporate level. Such entities are treated similarly to partnerships. The income of the entity is not taxed at the corporate level, and the members must pay tax on their share of the entity's income. These include:
S Corporations, all of whose shareholders must be U.S. citizens or resident individuals; other restrictions apply. The election requires the consent of all shareholders. If a corporation is not an S corporation from its formation, special rules apply to the taxation of income earned (or gains accrued) before the election.
Regulated investment companies (RICs), commonly referred to as mutual funds.
Real Estate Investment Trusts (REITs).
Taxable income[edit]
Federal corporate income tax receipts have declined relative to corporate profits.
Determinations of what is taxable and at what rate are made at the federal level based on U.S. tax law. Many but not all states incorporate federal law principles in their tax laws to some extent. Federal taxable income equals gross income[18] (gross receipts and other income less cost of goods sold) less tax deductions.[19] Gross income of a corporation and business deductions are determined in much the same manner as for individuals.[20] All income of a corporation is subject to the same federal tax rate. However, corporations may reduce other federal taxable income by a net capital loss[21] and certain deductions are more limited.[22] Certain deductions are available only to corporations. These include deductions for dividends received[23] and amortization of organization expenses.[24] Some states tax business income of a corporation differently than nonbusiness income.[25]
Principles for recognizing income and deductions may differ from financial accounting principles. Key areas of difference include differences in the timing of income or deduction, tax exemption for certain income, and disallowance or limitation of certain tax deductions.[26] IRS rules require that these differences be disclosed in considerable detail for non-small corporations on Schedule M-3 to Form 1120.
Tax rates[edit]
Federal tax rates[edit]
For regular income tax purposes, a system of graduated marginal tax rates is applied to all taxable income, including capital gains. Through 2015, the marginal tax rates on a corporation's taxable income are as follows:
Taxable income ($)
Tax rate[27]
0 to 50,000 15%
50,000 to 75,000 $7,500 + 25% of the amount over 50,000
75,000 to 100,000 $13,750 + 34% of the amount over 75,000
100,000 to 335,000 $22,250 + 39% of the amount over 100,000
335,000 to 10,000,000 $113,900 + 34% of the amount over 335,000
10,000,000 to 15,000,000 $3,400,000 + 35% of the amount over 10,000,000
15,000,000 to 18,333,333 $5,150,000 + 38% of the amount over 15,000,000
18,333,333 and up 35%
State income tax rates[edit]
[show]State corporate income tax rates
in the United States in 2010[28]
State
Tax Rate(s)
Tax Bracket(s)
Alabama (a) 6.5% $0
Alaska 1%
2%
3%
4%
5%
6%
7%
8%
9%
9.4%
$0
$10K
$20K
$30K
$40K
$50K
$60K
$70K
$80K
$90K
Arizona 6.968% $0
Arkansas (h) 1%
2%
3%
5%
6%
6.5%
$0
$3K
$6K
$11K
$25K
$100K
California (g) 8.84% $0
Colorado 4.63% $0
Connecticut 7.5% $0
Delaware 8.7% $0
Florida (g) 5.5% $0
Georgia 6% $0
Hawaii 4.4%
5.4%
6.4%
$0
$25K
$100K
Idaho 7.6% $0
Illinois 7.3% $0
Indiana 8.5% $0
Iowa 6%
8%
10%
12% $0
$25K
$100K
$250K
Kansas [29] 3% $0
Kentucky 4%
5%
6% $0
$50K
$100K
Louisiana 4%
5%
6%
7%
8% $0
$25K
$50K
$100K
$200K
Maine (g) 3.5%
7.93%
8.33%
8.93% $0
$25K
$75K
$250K
Maryland 8.25% $0
Massachusetts 8.8% $0
Michigan (b), (f), (g) 4.95% $0
Minnesota (g) 9.8% $0
Mississippi 3%
4%
5% $0
$5K
$10K
Missouri (i) 6.25% $0
Montana (j) 6.75% $0
Nebraska 5.58%
7.81% $0
$100k
Nevada None None
New Hampshire (k) 8.5% $0
New Jersey (c), (g) 9% $0
New Mexico 4.8%
6.4%
7.6% $0
$500K
$1M
New York (a), (f), (g), (h) 7.1% $0
North Carolina 6.9% $0
North Dakota (j) 2.1%
5.3%
6.4% $0
$25K
$50K
Ohio (d), (f) 0.26% $0
Oklahoma 6% $0
Oregon (e) 6.6%
7.9% $0
$250K
Pennsylvania (f), (g) 9.99% $0
Rhode Island 9% $0
South Carolina 5% $0
South Dakota None None
Tennessee 6.5% $0
Texas (l) Franchise Tax rate Franchise Tax rate
Utah (g) 5% $0
Vermont 6%
7%
8.5% $0
$10K
$25K
Virginia 6% $0
Washington (g) None None
West Virginia 8.5% $0
Wisconsin 7.9% 0
Wyoming None None
District of Columbia 9.975% $0
Notes: The rates above are for regular corporate taxes based on income (including those called franchise taxes) and exclude the effect of alternative taxes and minimum taxes. Most states have a minimum income or franchise tax. The above rates generally apply to entities treated as corporations other than S Corporations and financial institutions, which may be subject to different rates of tax. Tax rates are before credits and reductions for corporations operating in certain parts of the state.
(a) Excludes the effect of graduated tax rates based on level of income.
(b) The Michigan Business Tax applies to incorporated and unincorporated businesses, and is based on alternative measure of income that may not relate to net income.
(c) Businesses with an entire net income greater than $100K pay 9% in all taxable income, companies with entire net income greater than $50K and less than or equal to $100K pay 7.5% on all taxable income, and companies with entire net income less than or equal to $50K pay 6.5% on all taxable income.
(d) A tax on gross receipts, the commercial activity tax (CAT), was phased in from 2005 to 2008 while the corporate franchise tax (CFT, Ohio's corporate net income tax) was phased out. Beginning April 1, 2009, the CAT rate was fully phased in at 0.26%.
(e) The top income tax rate (7.9% on income over $250K) applies to tax years beginning on or after January 1, 2009, and before January 1, 2011.
(f) Excludes local corporate income tax.
(g) Excludes the effect of alternative tax bases, such as sales or assets.
(h) Other tax rates may apply to certain corporations.
(i) Missouri allows a deduction for federal income tax payments, reducing the effective state tax rate.
(j) A higher rate applies if the corporation elects "water's edge" apportionment.
(k) Also applies to unincorporated entities.
(l) While not called an income tax, Texas imposes a franchise tax at the higher of a tax based on capital or a graduated tax based on income.
The table to the right lists the tax rates on corporate income applied by each state, but not by local governments within states. Because state and local taxes are deductible expenses for federal income tax purposes, the effective tax rate in each state is not a simple addition of federal and state tax rates.
It should be noted that while a state may not levy a corporate income tax, they may impose other taxes that are similar. For example, Washington state does not have an income tax but levies a B&O (business and occupation tax) which is arguably a larger burden because the B&O tax is calculated as a percentage of revenue rather than a percentage of net income, like the corporate income tax. This means even loss-making enterprises are required to pay the tax.
Tax credits[edit]
Corporations, like other businesses, may be eligible for various tax credits which reduce federal, state or local income tax.[30] The largest of these by dollar volume is the federal foreign tax credit.[31][32] This credit is allowed to all taxpayers for income taxes paid to foreign countries. The credit is limited to that part of federal income tax before other credits generated by foreign source taxable income. The credit is intended to mitigate taxation of the same income to the same taxpayer by two or more countries, and has been a feature of the U.S. system since 1918. Other credits include credits for certain wage payments, credits for investments in certain types of assets including certain motor vehicles, credits for use of alternative fuels and off-highway vehicle use, natural resource related credits, and others. See, e.g., the Research & Experimentation Tax Credit.
Tax deferral[edit]
Deferred U.S. corporate foreign earnings 2001–2010.
Main articles: Tax deferral and Companies of the United States with untaxed profits
Deferral is one of the main features of the worldwide tax system that allows U.S. multinational companies to delay paying taxes on foreign profits. Under U.S. tax law, companies are not required to pay U.S. tax on their foreign subsidiaries’ profits for many years, even indefinitely until the earnings are returned to U.S. Therefore, it is one of the main reasons that U.S. corporations pay low taxes, even though the corporate tax rate in the U.S. is one of the highest rates (35%) in the world.
Deferral is beneficial for U.S. companies to raise the cost of capital relatively to their foreign-based competitors. Their foreign subsidiaries can reinvest their earnings without incurring additional tax that allows them to grow faster. It is also valuable to U.S. corporations with global operations, especially for corporations with income in low-tax countries. Some of the largest and most profitable U.S. corporations pay exceedingly low tax rates[33] through their use of subsidiaries in so-called tax haven countries. Eighty-three of the United States’s 100 biggest public companies have subsidiaries in countries that are listed as tax havens or financial privacy jurisdictions, according to the Government Accountability Office.[34]
[show]United States companies with
deferred foreign cash balances
that are greater than $5 billion, 2012[35]
Company
($ Billions)
Total
Cash
Foreign
Cash
Foreign Cash
% Total Cash
Apple 110.2 74.0 67%
Microsoft 59.5 50.0 89%
General Electric 83.7 >41.9 >50%
Cisco 46.7 41.7 89%
Google 49.3 25.7 48%
Oracle 29.7 25.1 84%
Johnson & Johnson 24.5 24.5 100%
Pfizer 24.0 ~19.2 ~80%
Amgen 19.4 16.6 82%
Qualcomm 26.6 16.5 62%
Coca-Cola 15.8 >13.9 >88%
Dell 13.9 ~11.8 ~85%
Merck 19.5 >9.2 >47.2%
Medtronic 8.9 8.3 93%
Hewlett-Packard 8.1 ~8.1 ~100%
eBay 8.0 7.0 88%
Wal-Mart 6.6 5.6 85%
However, tax deferral encourages U.S. companies to make job-creating investments offshore even if similar investments in the United States can be more profitable, absent tax considerations. Furthermore, companies try to use accounting techniques to record profits offshore by any way, even if they keep actual investment and jobs in the United States. This explains why U.S. corporations report their largest profits in low-tax countries like the Netherlands, Luxembourg, and Bermuda, though clearly that is not where most real economic activity occurs.[34][dead link]
Interest deduction limitations[edit]
A tax deduction is allowed at the federal, state and local levels for interest expense incurred by a corporation in carrying out its business activities. Where such interest is paid to related parties, such deduction may be limited.[36] The classification of instruments as debt on which interest is deductible or as equity with respect to which distributions are not deductible is highly complex and based on court-developed law. The courts have considered 26 factors in deciding whether an instrument is debt or equity, and no single factor predominates.[37]
Federal tax rules also limit the deduction of interest expense paid by corporations to foreign shareholders based on a complex calculation designed to limit the deduction to 50% of cash flow.[38] Some states have other limitations on related party payments of interest and royalties.
Largest tax deductions, credits, and deferrals
for corporations 2005–2009[39]
Total amount
(2005–2009)
(billions of dollars)
Depreciation of equipment in excess of alternative depreciation system 71.3
Exclusion of interest on public purpose state and local government debt 38.3
Inventory property sales source rule exception 30.9
Expensing of research and experimental expenditures 28.5
Deferral of active income of controlled foreign corporations 25.8
Reduced rates for first $10,000,000 of corporate taxable income 23.7
Deduction for income attributable to domestic production activities 19.8
Tax credit for low-income housing 17.5
Exclusion of investment income on life insurance and annuity contracts 12.8
Tax credit for qualified research expenditures 10.7
Other corporate events[edit]
U.S. rules provide that certain corporate events are not taxable to corporations or shareholders. Significant restrictions and special rules often apply. The rules related to such transactions are quite complex, and exist primarily at the federal level. Many of the states follow federal tax treatment for such events.
Formation[edit]
The formation of a corporation by controlling corporate or non-corporate shareholder(s) is generally a nontaxable event.[40] Generally, in tax free formations the tax attributes of assets and liabilities are transferred to the new corporation along with such assets and liabilities.
Example: John and Mary are United States residents who operate a business. They decide to incorporate for business reasons. They transfer assets of the business to Newco, a newly formed Delaware corporation of which they are the sole shareholders, subject to accrued liabilities of the business, solely in exchange for common shares of Newco. This transfer should not generally cause gain or loss recognition for John, Mary, or Newco.[41] Newco assumes John and Mary's tax basis in the assets it acquires.[42] If on the other hand Newco also assumes a bank loan in excess of the basis of the assets transferred less the accrued liabilities, John and Mary will recognize taxable gain for such excess.[43]
Acquisitions[edit]
Corporations may merge or acquire other corporations in a manner treated as nontaxable to either of the corporations and/or to their shareholders.[44] Generally, significant restrictions apply if tax free treatment is to be obtained. For example, Bigco acquires all of the shares of Smallco from Smallco shareholders in exchange solely for Bigco shares. This acquisition is not taxable to Smallco or its shareholders under U.S. tax law if certain requirements are met,[45] even if Smallco is then liquidated into or merged with Bigco.[46]
Reorganizations[edit]
In addition, corporations may change key aspects of their legal identity, capitalization, or structure in a tax free manner. Examples of reorganizations that may be tax free include mergers, liquidations of subsidiaries, share for share exchanges, exchanges of shares for assets, changes in form or place of organization, and recapitalizations.[47]
Advance tax planning might mitigate tax risks resulting from a business reorganization or potentially enhance tax savings.[48]
Distribution of earnings[edit]
U.S. corporate profits after taxes 1947–2011.[49]
Shareholders of corporations are subject to corporate or individual income tax when corporate earnings are distributed.[50] Such distribution of earnings is generally referred to as a dividend.
Dividends received by other corporations may be taxed at reduced rates, or exempt from taxation, if the dividends received deduction applies. Dividends received by individuals (if the dividend is a "qualified dividend") are taxed at reduced rates.[51] Exceptions to shareholder taxation apply to certain nonroutine distributions, including distributions in liquidation of an 80% subsidiary[52] or in complete termination of a shareholder's interest.[53]
If a corporation makes a distribution in a non-cash form, it must pay tax on any gain in value of the property distributed.[54]
The United States does not generally require withholding tax on the payment of dividends to shareholders. However, withholding tax is required if the shareholder is not a U.S. citizen or resident or U.S. corporation, or in some other circumstances (see Tax withholding in the United States).
Earnings and profits[edit]
U.S. corporations are permitted to distribute amounts in excess of earnings under the laws of most states under which they may be organized. A distribution by a corporation to shareholders is treated as a dividend to the extent of earnings and profits (E&P), a tax concept similar to retained earnings.[55] E&P is current taxable income, with significant adjustments, plus prior E&P reduced by distributions of E&P. Adjustments include depreciation differences under MACRS, add-back of most tax exempt income, and deduction of many non-deductible expenses (e.g., 50% of meals and entertainment).[56] Corporate distributions in excess of E&P are generally treated as a return of capital to the shareholders.[57]
Liquidation[edit]
The liquidation of a corporation is generally treated as an exchange of a capital asset under the Internal Revenue Code. If a shareholder bought stock for $300 and receives $500 worth of property from a corporation in a liquidation, that shareholder would recognize a capital gain of $200. An exception is when a parent corporation liquidates a subsidiary, which is tax-free so long as the parent owns more than 80% of the subsidiary. There are certain anti-abuse rules to avoid the engineering of losses in corporate liquidations.[58]
Foreign corporation branches[edit]
The United States taxes foreign (i.e., non-U.S.) corporations differently than domestic corporations.[59] Foreign corporations generally are taxed only on business income when the income is effectively connected with the conduct of a U.S. trade or business (i.e., in a branch). This tax is imposed at the same rate as the tax on business income of a resident corporation.[60]
The U.S. also imposes a branch profits tax on foreign corporations with a U.S. branch, to mimic the dividend withholding tax which would be payable if the business was conducted in a U.S. subsidiary corporation and profits were remitted to the foreign parent as dividends. The branch profits tax is imposed at the time profits are remitted or deemed remitted outside the U.S.[61]
In addition, foreign corporations are subject to withholding tax at 30% on dividends, interest, royalties, and certain other income. Tax treaties may reduce or eliminate this tax. This tax applies to a "dividend equivalent amount," which is the corporation's effectively connected earnings and profits for the year, less investments the corporation makes in its U.S. assets (money and adjusted bases of property connected with the conduct of a U.S. trade or business). The tax is imposed even if there is no distribution.
Consolidated returns[edit]
Main article: Tax consolidation
Corporations 80% or more owned by a common parent corporation may file a consolidated return for federal and some state income taxes.[62] These returns include all income, deductions, and credits of all members of the controlled group, generally expressed without intercompany eliminations. Some states allow or require a combined or consolidated return for U.S. members of a "unitary" group under common control and in related businesses. Certain transactions between group members may not be recognized until the occurrence of events for other members. For example, if Company A sells goods to sister Company B, the profit on the sale is deferred until Company B uses or sells the goods. All members of a consolidated group must use the same tax year.
Transfer pricing[edit]
Main article: Transfer pricing
Transactions between a corporation and related parties are subject to potential adjustment by tax authorities.[63] These adjustments may be applied to both U.S. and foreign related parties, and to individuals, corporations, partnerships, estates, and trusts.
Alternative taxes[edit]
See also: Alternative Minimum Tax
United States federal income tax incorporates an alternative minimum tax. This tax is computed at a lower tax rate (20% for corporations), and imposed based on a modified version of taxable income. Modifications include longer depreciation lives assets under MACRS, adjustments related to costs of developing natural resources, and an addback of certain tax exempt interest.[64]
Corporations may also be subject to additional taxes in certain circumstances. These include taxes on excess accumulated undistributed earnings and personal holding companies[65] and restrictions on graduated rates for personal service corporations.[66]
Some states, such as New Jersey, impose alternative taxes based on measures other than taxable income. Among such measures are gross income, pipeline revenues, gross receipts, and various asset or capital measures. In addition, some states impose a tax on capital of corporations or on shares issued and outstanding. The U. S. state of Michigan previously taxed businesses on an alternative base that did not allow compensation of employees as a tax deduction and allowed full deduction of the cost of production assets upon acquisition.
Tax returns[edit]
U.S. corporate income tax return form 1120.[67]
Corporations subject to U.S. tax must file federal and state income tax returns.[68] Different tax returns are required at the federal and some state levels for different types of corporations or corporations engaged in specialized businesses. The United States has 13 variations on the basic Form 1120 for S corporations, insurance companies, Domestic International Sales Corporations, foreign corporations, and other entities. The structure of the forms and the imbedded schedules vary by type of form.
United States federal corporate tax returns require both computation of taxable income from components thereof and reconciliation of taxable income to financial statement income. Corporations with assets exceeding $10 million must complete a detailed 3 page reconciliation on Schedule M-3 indicating which differences are permanent (i.e., do not reverse, such as disallowed expenses or tax exempt interest) and which are temporary (e.g., differences in when income or expense is recognized for book and tax purposes).
Some state corporate tax returns have significant imbedded or attached schedules related to features of the state's tax system that differ from the federal system.[69]
Preparation of non-simple corporate tax returns can be time consuming. For example, the U.S. Internal Revenue Service states that the average time needed to complete Form 1120-S, for privately held companies electing flow through status, is over 56 hours, not including recordkeeping time.[70]
Federal corporate tax returns for most types of corporations are due by the 15th day of the third month following the tax year (March 15 for calendar year).[71] State corporate tax return due dates vary, but most are due either on the same date or one month after the federal due date. Extensions of time to file are routinely granted.[72]
Penalties may be imposed at the federal and state levels for late filing or non-filing of corporate income tax returns.[73] In addition, other substantial penalties may apply with respect to failures related to returns and tax return computations.[74] Intentional failure to file or intentional filing of incorrect returns may result in criminal penalties to those involved.[75]
Further reading[edit]
IRS Publication 542, Corporations
Standard tax texts
Willis, Eugene; Hoffman, William H. Jr., et al: South-Western Federal Taxation, published annually. 2013 edition (cited above as Willis|Hoffman) ISBN 978-1-133-18955-8.
Pratt, James W.; Kulsrud, William N., et al: Federal Taxation, updated periodically. 2013 edition ISBN 978-1-133-49623-6 (cited above as Pratt & Kulsrud).
Fox, Stephen C., Income Tax in the USA, published annually. 2013 edition ISBN 978-0-985-18231-1
Treatises
Bittker, Boris I. and Eustice, James S.: Federal Income Taxation of Corporations and Shareholders: abridged paperback ISBN 978-0-7913-4101-8 or as a subscription service. Cited above as Bittker & Eustice.
Crestol, Jack; Hennessey, Kevin M.; and Yates, Richard F.: "Consolidated Tax Return : Principles, Practice, Planning, 1998 ISBN 978-0-7913-1629-0
Kahn & Lehman. Corporate Income Taxation
Healy, John C. and Schadewald, Michael S.: Multistate Corporate Tax Course 2010, CCH, ISBN 978-0-8080-2173-5 (also available as a multi-volume guide, ISBN 978-0-8080-2015-8)
Hoffman, et al.: Corporations, Partnerships, Estates and Trusts, ISBN 978-0-324-66021-0
Momburn, et al.: Mastering Corporate Tax, Carolina Academic Press, ISBN 978-1-59460-368-6
Keightley, Mark P. and Molly F. Sherlock: The Corporate Income Tax System: Overview and Options for Reform, Congressional Research Service, 2014.
References[edit]
Jump up ^ Puzzanghera, Jim (15 December 2015). "Corporate Income Tax Rates around the World, 2014". TaxFoundation.org. Retrieved 28 December 2012.
Jump up ^ "With Tax Break, Corporate Rate Is Lowest in Decades" Wall Street Journal, February 3, 2012
Jump up ^ Subtitle A of Title 26 of the United States Code, in particular 26 U.S.C. § 11, § 881, and § 882. For a thorough overview of federal income taxation of corporations, see Internal Revenue Service Publication 542, Corporations. See also Willis|Hoffman chapters 17-20, Pratt & Kulsrud chapters 19–21, Fox chapter 30 (each fully cited under Further reading). For purely corporate tax matters, the Bittker & Eustice treatise cited fully under Treatises is authoritative and has been cited by the Supreme Court.
Jump up ^ 26 U.S.C. § 7701(a)(4). Note that a sham entity may be ignored. See Pratt & Kulsrud 2005 p. 19-4.
Jump up ^ See, e.g., New York State Publication 20, Tax Guide for Business, page 8.
Jump up ^ For 2006, the Internal Revenue Service reported that approximately 6 million corporate returns were filed, of which more than 4 million were S corporations. See 2006 Statistics on Income, Corporation Income Tax Returns.
Jump up ^ 26 U.S.C. § 11, Pratt & Kulsrud 2005 pp. 3–4.
Jump up ^ 26 U.S.C. § 441. Also see IRS Publication 538 Accounting Methods and Periods.
Jump up ^ 26 U.S.C. § 442.
Jump up ^ Bartlett, Bruce (31 May 2011). "Are Taxes in the U.S. High or Low?". New York Times. Retrieved 19 September 2012.
Jump up ^ http://stats.oecd.org/Index.aspx?QueryId=21699#
Jump up ^ "Treasury Conference on Business Taxation and Global Competitiveness" (PDF). US Treasury. 23 July 2007. p. 42.
Jump up ^ The Supreme Court enunciated four tests for a state tax in Complete Auto Transit, Inc. v. Brady. Under that case, the out of state taxpayer must have a substantial connection (nexus) with the state, the tax must not discriminate against interstate commerce, the tax must be fairly apportioned, and there must be a fair relationship of the tax to services provided.
Jump up ^ Bittker & Eustice section 1.01, Pratt & Hulsrud 2005 p.1-4, Willis|Hoffman p. 1-2 and 1-3.
Jump up ^ For a more complete history, see Seidman's Legislative History of Income Tax Laws, 1938, reprinted 2003 as ISBN 1-58477-336-7.
Jump up ^ David Kocieniewski (2 May 2011), "U.S. Business Has High Tax Rates but Pays Less" The New York Times
Jump up ^ 26 CFR 301.7701-2 Archived June 12, 2011, at the Wayback Machine., 301.7701-3 Archived June 12, 2011, at the Wayback Machine., Bittker & Eustice chapter 2, and Fox chapter 31.
Jump up ^ 26 USC 61.
Jump up ^ 26 USC 63.
Jump up ^ Willis|Hoffman 2009, p. 17-8 and -9.
Jump up ^ 26 USC 1211(a).
Jump up ^ For example, charitable contributions of a corporation are limited to 10% of taxable income under 26 USC 170(b)(2). For a comparison of how individuals and corporations are taxed, see Willis|Hoffman 2009 p. 17–36, 37.
Jump up ^ 26 USC 243 and 26 USC 246, Bittker & Eustice section 5.05.
Jump up ^ 26 USC 248, Bittker & Eustice section 5.06.
Jump up ^ See, e.g., New York, supra, which bases taxable income on federal taxable income, with minor modification, but separately taxes 'income from subsidiary capital.'
Jump up ^ Willis|Hoffman 2009 p. 4–5 et seq, Pratt & Kulsrud p. 5–13 et seq.
Jump up ^ Form 1120 Instructions for 2016 page 17
Jump up ^ "Archived copy". Archived from the original on 2011-05-01. Retrieved 2010-11-29.
Jump up ^ "Archived copy" (PDF). Archived from the original (PDF) on 2011-07-16. Retrieved 2011-06-12. pg. 8
Jump up ^ Pratt & Kulsrud 2005 p. 15-26 et seq, Willis|Hoffman 2009 chapter 12.
Jump up ^ 26 USC 901, et seq.
Jump up ^ For statistics related to federal taxes, see IRS Statistics on Income, available in .pdf and Excel formats for many years. Note that some statistics are based on counts of returns, and some are based on samples. For 2006 for all corporations, the total foreign tax credit for corporations was $78 billion, the general business credit $16 billion, and prior year AMT credit $7 billion, on total pre-credit taxes of $463 billion.
Jump up ^ Jesse Drucker (October 21, 2010). "Google 2.4% Rate Shows How $60 Billion Lost to Tax Loopholes". Bloomberg L.P. Retrieved March 15, 2013.
^ Jump up to: a b http://www.americanprogress.org/issues/2011/03/te_031611.html
Jump up ^ Levin, Carl (20 September 2012). "PSI Memo on Offshore Profit Shifting and the U.S. Tax Code". United States Senate Subcommittee on Investigations. p. 6. Archived from the original on 24 September 2012. Retrieved 22 September 2012.
Jump up ^ Some limitations apply to all corporations, while some apply only to corporate payments to foreign related parties. See, e.g., 26 USC 163(j), 267, 385. Without such limitation, owners could structure financing of the corporation in a manner that would provide for a tax deduction for much of the profits, potentially without changing the tax on shareholders. For example, assume a corporation earns profits of 100 before interest and would normally distribute 50 to shareholder individuals. If the corporation is structured so that deductible interest of 50 is payable to the shareholders, it will cut its tax to half the amount due if it merely paid a dividend. Absent the recently enacted rate differential on dividends, the shareholders' tax would be the same in either case.
Jump up ^ [citation needed] for [Tax Notes] article circa 1986.
Jump up ^ 26 USC 163(j) and long-proposed regulations thereunder. See Bittker & Eustice section 4.04[8] for a brief outline.
Jump up ^ JCX-49-11, Joint Committee on Taxation, September 22, 2011, pp 85. http://www.jct.gov/publications.html?func=startdown&id=4363
Jump up ^ 26 USC 351. Bittker & Eustice chapter 3, Willis|Hoffman 2009 chapter 17, Pratt & Kulsrud 2005 pp.19–30 et seq.
Jump up ^ 26 USC 351.
Jump up ^ 26 USC 362.
Jump up ^ 26 USC 357 and 26 CFR 1.367-1(b) Example Archived 2011-06-12 at the Wayback Machine..
Jump up ^ 26 USC 354-358 and 361-362.
Jump up ^ See 26 USC 368(a)(1)(B) 26 USC 368
Jump up ^ See generally USC 368(a)(1)(D) 26 USC 368
Jump up ^ See, e.g., 26 USC 368 defining events qualifying for reorganization treatment, including certain acquisitions. Bittker & Eustice chapter 12. Willis|Hoffman p. 20-14 et seq.
Jump up ^ Davis, Bruce; Bast, Donald; Sellers, Tracey. "Sales Taxes and Business Reorganizations: A Primer". Transaction Advisors. ISSN 2329-9134.
Jump up ^ "US Corporate Profits after Taxes". Federal Reserve Board, St. Louis. Retrieved 6 October 2012.
Jump up ^ See 26 USC 61(a)(7). See Bittker & Eustice chapter 8, Willis|Hoffman 2009 chapter 19, and Pratt & Kulsrud 2005 chapter 20 for a thorough discussion of non-liquidating distributions, including earnings and profits, and Bittker & eustice chapters 9 and 10 and Pratt & Kulsrud pp. 20–14 et seq for a discussion of redemptions and liquidating distributions.
Jump up ^ See 26 USC 1(h)(11) for the reduced rate of tax for individuals, and 26 USC 243(a)(1)
Jump up ^ 26 USC 332
Jump up ^ 26 USC 302.
Jump up ^ 26 US 311.
Jump up ^ 26 USC 301. Dividend is defined at 26 USC 316. Bittker & Eustice section 8.03.
Jump up ^ 26 USC 312.
Jump up ^ 26 USC 301(c).
Jump up ^ Taxation of corporate liquidations.
Jump up ^ Contrast tax on domestic corporations under 26 USC 11 and 26 USC 63 with tax on foreign corporations under 26 USC 881-885. See Bittker & Eustice sections 15.01 to 15.04, Willis|Hoffman pp. 25–35.
Jump up ^ See, e.g., 26 USC 882.
Jump up ^ 26 USC 884. Bittker & Eustice section 15.04[2].
Jump up ^ 26 USC 1501-1505 and extensive extensive regulations under 1.1502-1 et seq[permanent dead link]. See Crestol, et al cited below.
Jump up ^ 26 USC 482 and extensive regulations[permanent dead link] thereunder.
Jump up ^ 26 USC 55-59. Also see IRS instructions to Form 4626.
Jump up ^ 26 USC 531-565. See Bittker & Eustice, chapter 7.
Jump up ^ 26 USC 11(b).
Jump up ^ "U.S. Corporation Income Tax Return" (PDF). Internal Revenue Service. Retrieved 6 October 2012.
Jump up ^ 26 USC 6012(a)(2). See individual states for requirements.
Jump up ^ See, e.g., New Jersey's 17+ page Form CBT100 Archived 2009-11-22 at the Wayback Machine. that incorporates limitations on related party interest and royalties, an alternative tax, 3 factor apportionment, depreciation adjustments, special taxes for professional corporations, and other features.
Jump up ^ See page 38f Instructions for Form 1120-S.
Jump up ^ 26 USC 6072(b).
Jump up ^ See, e.g., instructions to IRS Form 7004.
Jump up ^ 26 USC 6651-6665.
Jump up ^ See, e.g., 26 USC 6662 for penalties up to 40% of tax related to transfer pricing or valuation adjustments.
Jump up ^ 26 USC 7201 et seq.
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We Bought a Zoo
From Wikipedia, the free encyclopedia
Jump to: navigation, search
This article is about the 2011 film. For the book by the same name, see We Bought a Zoo (book).
We Bought a Zoo
Theatrical release poster
Directed by
Cameron Crowe
Produced by
Julie Yorn
Cameron Crowe
Marc Gordon
Screenplay by
Aline Brosh McKenna
Cameron Crowe
Based on
We Bought a Zoo
by Benjamin Mee
Starring
Matt Damon
Scarlett Johansson
Thomas Haden Church
Patrick Fugit
Elle Fanning
John Michael Higgins
Music by
Jónsi
Cinematography
Rodrigo Prieto
Edited by
Mark Livolsi
Production
company
Vinyl Films
LBI Entertainment
Dune Entertainment
Distributed by
20th Century Fox
Release date
December 23, 2011 (2011-12-23)
Running time
124 minutes
Country
United States
Language
English
Budget
$50 million[1]
Box office
$120.1 million[2]
We Bought a Zoo is a 2011 American family comedy-drama film loosely based on the 2008 memoir of the same name by Benjamin Mee. It was written and directed by Cameron Crowe and stars Matt Damon as widowed father Benjamin Mee, who purchases a dilapidated zoo with his family and takes on the challenge of preparing the zoo for its reopening to the public. The film also stars Scarlett Johansson, Maggie Elizabeth Jones, Thomas Haden Church, Patrick Fugit, Elle Fanning, Colin Ford, and John Michael Higgins. The film was released in the United States on December 23, 2011 by 20th Century Fox.[3] The film earned $120.1 million on a $50 million budget. We Bought a Zoo was released on DVD and Blu-ray on April 3, 2012 by 20th Century Fox Home Entertainment. Dartmoor Zoological Park (originally Dartmoor Wildlife Park), on which the film is based, is a 33-acre zoological garden located near the village of Spark well, Devon, England.
Contents
[hide]
1 Plot
2 Cast
3 Production
3.1 Development
3.2 Casting
4 Soundtrack
4.1 Track listing
4.2 Film tracks not on album
5 Reception
5.1 Box office
5.2 Critical response
5.3 Home media
5.4 Accolades
6 The real zoo
7 Legacy
8 References
9 External links
Plot[edit]
Benjamin Mee is still grieving the loss of his wife and dealing with the expulsion of his 14-year-old son, Dylan, from school, and decides to make a restart by buying a new house. He tours many houses with his 7-year-old daughter, Rosie, and his realtor, Mr. Stevens, but finds none he likes until his daughter finds a listing with what seems like the perfect house. They drive to an old large house and Benjamin inspects the property, telling his realtor it is perfect. When they hear a lion roar, Stevens explains that the house comes with a zoo in the back, which closed several years before; if they want the house, they must buy the zoo.
Mee eventually decides to buy the zoo when he sees Rosie happily playing with the peacocks. Dylan, however, hates the idea of moving away from his friends and retreats into his artwork which has grown more macabre since the death of his mother. Benjamin's brother, Duncan, tries to dissuade him from the purchase, but Benjamin buys it anyway. The zoo staff, led by the 28-year-old head keeper, Kelly Foster, help to start renovating the zoo with the intent to reopen it to the public. When Kelly confronts Benjamin about why he bought a zoo, knowing nothing about running one, Benjamin simply responds "Why not?". Dylan befriends Kelly's 13-year-old homeschooled cousin, Lily Miska, who develops a romantic interest that Dylan is oblivious to.
A strict USDA inspector, Walter Ferris, arrives for a surprise inspection and makes a list of repairs that would cost around $100,000, which Benjamin does not have. Rhonda Blair, the zoo's accountant, gossips that Benjamin will probably sell the zoo. The workers' morale sinks, fearing the property will be sold to a buyer that will close it down.
When Lily tells Dylan that she heard his family might be leaving, he is overjoyed, which hurts her feelings. Benjamin discovers that his wife bequeathed him an investment account, with instructions to use the money wisely while listening to his heart. Duncan advises him to walk away and start over with the money, but Benjamin decides to use the money to repair the zoo. While this lifts the zoo workers' morale, Dylan is unhappy about having to stay; he confronts his father, and a heated argument ensues. They reconcile the next morning and Dylan admits he misses Lily. Benjamin gives his son advice using his favorite principle, that you only need 20 seconds of courage to achieve great things. Benjamin realizes that instead of trying to start over by forgetting his wife, he should accept that she will always be a part of him.
Prior to the grand opening of the zoo, the facility passes a very stringent inspection from Ferris, who grudgingly wishes them good luck. Dylan, following his father's advice, confesses to Lily that he loves her and she forgives him. The week prior to the opening, the worst rainstorm in 100 years is predicted to wash it out. The weather clears in time, but in the morning they are disappointed when no visitors arrive. They discover that a fallen tree has blocked the access road, with a large crowd of waiting visitors behind it. The staff help them to climb over the tree. There are so many people that they run out of tickets, forcing Benjamin and Kelly to look for more. They end up face to face in a shed, where Kelly admits to Benjamin that she is romantically interested in him and since she "can't get a handle on it", she kisses him, telling him that maybe they can do it again on New Year's Eve; Benjamin kisses her back, and tells her that he is looking forward to it.
Benjamin takes his children to the restaurant where he met their mother, explaining that it was the point where their existence became a possibility. He takes them through that day's encounter, where Benjamin worked up the nerve to talk to his future wife with "20 seconds of insane courage", and walks up to the table she was at. He visualizes her sitting there, and asks her why such an amazing woman would talk to someone like him. She responds, "Why not?".
Cast[edit]
Matt Damon as Benjamin Mee, the father of Dylan and Rosie Mee and the owner of the zoo, who is trying to restart his life after his wife dies.[4]
Scarlett Johansson as Kelly Foster, the 28-year-old lead zookeeper and long-time employee at Rosemoor Animal Park.
Thomas Haden Church as Duncan Mee,[5] Ben's older brother and an accountant.
Colin Ford as Dylan Mee,[6] Ben's 14-year-old son, who is initially drawn to Lily and eventually develops feelings for her and has a rough relationship with his father.
Maggie Elizabeth Jones as Rosie Mee, Ben's 7-year-old daughter, who is very curious about all of the animals in the zoo and thinks living at a zoo is a grand adventure.
Angus Macfadyen as Peter MacCreedy, the carpenter of the zoo who had made many innovative enclosures for the zoo, and he claims that his ideas were "stolen" by Walter Ferris. Because of this, he has a huge and violent grudge against Walter.
Elle Fanning as Lily Miska,[7] the 13-year old home-schooled cousin of Kelly and worker at the zoo's restaurant who lives within the zoo. Although she is too young to legally work, she is paid "under the table" out of her cousin's salary. She likes Dylan (who is at first unaware of this fact), but later gives up on her pursuit of a relationship with him after Dylan doesn't listen to her and unintentionally hurts her feelings. After he subsequently apologizes and tells her of his own feelings for her, she forgives him and they resume their friendship and start their relationship.
Patrick Fugit as Robin Jones; the zoo's craftsman and Crystal the Monkey's owner.[7]
John Michael Higgins as Walter "Walt" Ferris, a strict zoo inspector who earns the dislike of many people, especially Peter MacCreedy.
Carla Gallo as Rhonda Blair, the secretary and bookkeeper of the zoo.
J. B. Smoove as Mr. Stevens, the Mee family's real estate agent.
Stéphanie Szostak as Katherine Mee, the deceased wife of Benjamin Mee.
Desi Lydic as Shea Seger, a woman with an obvious crush on Benjamin who always brings him lasagna.
Peter Riegert as Delbert McGinty, Benjamin's boss before he 'starts over'.
Michael Panes as the principal of Dylan and Rosie's school.
Kym Whitley as Eve the Home Depot Clerk.
Crystal the Monkey as Herself.
Bart / Tank the Bear as Buster, the grizzly bear.
Production[edit]
Development[edit]
In May 2010, Cameron Crowe agreed to direct the 20th Century Fox adaptation of Benjamin Mee's memoir We Bought a Zoo.[8] He then began rewriting the film's script, which was originally written by Aline Brosh McKenna.[8] This was the first film that was directed by Crowe since the 2005 film Elizabethtown.[8] The film was released on December 23, 2011.[8]
Casting[edit]
Crowe traveled to the set of the film True Grit to persuade actor Matt Damon to take on the role of the lead character in the film.[1] Crowe also presented a script of the film, a CD of songs that Crowe composed himself, and a copy of the 1983 film Local Hero, with instructions "to not just read the script and make a decision".[1] Damon was persuaded to play the role after he was moved by Crowe's music and found that Local Hero was a "masterpiece".[1] As for Crowe himself, he had already decided on Damon halfway through their meeting, though the distributor Fox still had a shortlist of candidates to play this role.[1]
Soundtrack[edit]
We Bought a Zoo
Soundtrack album by Jónsi
Released
December 9, 2011
Recorded
2011
Genre
Ambient, alternative rock, soundtrack, post-rock
Length
51:12
Label
Columbia Records
Producer
Alex Somers, Jón Þór Birgisson
In August 2011, it was announced that Icelandic musician Jón Þór "Jónsi" Birgisson, the lead singer of the band Sigur Rós, would be composing the music scores for We Bought a Zoo.[9] Director Crowe described the choice as "only natural", since "Jónsi has been a part of the making of We Bought A Zoo from the very beginning".[9]
The song Gathering Stories was on the shortlist of 39 songs that have a chance of being nominated for Best Original Song Oscar at the 84th Academy Awards.[10] This song was co-written by Jonsi Birgisson and Cameron Crowe.[10]
While the official CD release of the movie soundtrack only includes music by Jón Þór "Jónsi" Birgisson and Sigur Rós,[11] the complete soundtrack of the film included a variety of artists.[12]
Track listing[edit]
No.
Title
Artist(s)
Length
1. "Why Not?" Jónsi 4:49
2. "Ævin Endar" Jónsi 3:32
3. "Boy Lilikoi" Jónsi 4:29
4. "Sun" Jónsi 1:50
5. "Brambles" Jónsi 2:24
6. "Sinking Friendships" Jónsi 4:42
7. "We Bought a Zoo" Jónsi 4:21
8. "Hoppípolla" Sigur Rós 4:30
9. "Snærisendar" Jónsi 2:43
10. "Sink Ships" Jónsi 2:21
11. "Go Do" Jónsi 4:41
12. "Whole Made of Pieces" Jónsi 2:47
13. "Humming" Jónsi 2:33
14. "First Day" Jónsi 1:40
15. "Gathering Stories" Jónsi 3:56
Film tracks not on album[edit]
"Don't Come Around Here No More" – Tom Petty & The Heartbreakers
"Do It Clean" – Echo & the Bunnymen
"Airline to Heaven" – Wilco
"Don't Be Shy" – Cat Stevens
"Living with the Law" – Chris Whitley
"Last Medicine Dance" – Mike McCready
"Buckets of Rain" – Bob Dylan
"I'm Open" – Eddie Vedder
"No Soy Del Valle" – Quantic Presenta Flowering Inferno
"Like I Told You" – Acetone
"Ashley Collective" – Mike McCready
"For a Few Dollars More" – The Upsetters
"Hunger Strike" – Temple Of The Dog
"Mariachi El Bronx" – Mariachi El Bronx
"Haleakala Sunset" – CKsquared
"Cinnamon Girl" (Live) – Neil Young
"Holocene" – Bon Iver
"Throwing Arrows" – Mike McCready
"Work to Do" – The Isley Brothers
"All Your Love (I Miss Loving)" – Otis Rush
"I Think It's Going to Rain Today" – Randy Newman
Reception[edit]
Box office[edit]
We Bought a Zoo grossed a total of $2,984,875 on its opening day in the U.S. box office, making it the sixth highest-grossing film that weekend.[2] It subsequently earned $14,604,645 in its first four days of screening. Overall, the film grossed $75,624,550 in North America and $37,764,426 internationally for a worldwide total of $113,388,976.[2] It is one of only twelve feature films to be released in over 3,000 theaters and still improve on its box office performance in its second weekend, increasing 41.4% from $9,360,434 to $13,238,241.[13]
Critical response[edit]
On Rotten Tomatoes the film has an approval rating of 66% based on 155 reviews, with an average rating of 6.6/10. The site's critical consensus reads, "We Bought a Zoo is a transparently cloying effort by director Cameron Crowe, but Matt Damon makes for a sympathetic central character."[14] On Metacritic the film has a score of 58 out of 100, based on 40 critics, indicating "mixed or average reviews".[15]
Roger Ebert, reviewing for the Chicago Sun-Times, awarded the film 2.5 stars out of 4, describing the film as "too much formula and not enough human interest."[16] He added that the film's "pieces go together too easily, the plot is too inevitable, and we feel little real energy between the players."[16] However, he did praise Damon, whom he says "makes a sturdy and likable Benjamin Mee".[16] The New York Times reviewer Manohla Dargis criticized Crowe's direction, writing that it "makes the escalating tension between Benjamin and Dylan the story's soft center," while keeping "the brutality of illness and death" "safely off-screen".[17] She also noted that the film uses "classic movie logic", specifically pointing out the way that Benjamin quits his job and that he "doesn't agonize about how he'll keep his children housed, fed and clothed".[17] On the other hand, Dargis wrote that "you may not buy his [Cameron's] happy endings, but it's a seductive ideal when all of God's creatures, great and small, buxom and blond, exist in such harmony."[17]
The Hollywood Reporter commented that the "uplifting tale [the film] has heart, humanity and a warmly empathetic central performance from Matt Damon", although it "doesn't dodge the potholes of earnest sentimentality and at times overplays the whimsy".[18] The reviewer also praised the cast, describing them as "solid", and in particular praised Damon's character, whose struggle he says "gives the movie a soulful pull, even at its most predictable".[18] Overall, this reviewer summarized his review by saying that "Cameron Crowe's film has some rough edges, but it ultimately delivers thanks to Matt Damon's moving performance."[18]
Home media[edit]
20th Century Fox Home Entertainment released We Bought a Zoo on DVD and Blu-ray on April 3, 2012.
Accolades[edit]
List of awards and nominations
Year
Award
Category
Recipient(s) and nominee(s)
Result
Ref
2011 Phoenix Film Critics Society Awards Best Live Action Family Film We Bought a Zoo Nominated [19]
Satellite Award Best Original Song Jónsi, Cameron Crowe –
"Gathering Stories" Nominated [20]
2012 BMI Award Film Music Award Jónsi Won [21]
Teen Choice Awards Choice Movie: Drama We Bought a Zoo Nominated [22]
Choice Movie Actor: Drama Matt Damon Nominated
Choice Movie Actress: Drama Scarlett Johansson Nominated
Young Artist Award Best Performance in a Feature Film - Supporting Young Actor Colin Ford Nominated [23]
Best Performance in a Feature Film - Young Actress Ten and Under Maggie Elizabeth Jones Nominated
The real zoo[edit]
The movie's plot and actual events differ. The real Benjamin Mee is British. The story was adapted for an American audience and Mee approved the changes.[24] The actual zoo Mee bought is Dartmoor Zoological Park, located in Devon, England.[25] The fictional zoo in the film is called Rosemoor Wildlife Park and is located in California.
In real life, Benjamin's wife, Katherine, died after they had already bought the zoo and moved in.[25] In the film, Benjamin bought the zoo after her death. In real life, Benjamin's father had died and his mother needed to move; the farm cost the same price as his parents' house, and his mother came too.[26] Benjamin and his family made a specific and informed decision to buy a zoo. In the film, it occurred as a result of finding a house they liked.
Instead of an escaping bear, as portrayed by the film, it was a jaguar called Sovereign that had escaped.[25] Benjamin's children were also younger (aged four and six respectively) than the children in the film.[25]
In the film, the zoo was much easier to buy. In real life, it took almost two years to buy.[25] Benjamin's first offer to buy the zoo was rejected due to his lack of experience in the zoological world.[25] Finally, the real zoo opened on Saturday July 7, 2007. The movie moved that event up to the same date in 2010. This later date fell on a Wednesday, but was identified in the script as the original Saturday.
Legacy[edit]
The longtime gag-feud between Matt Damon and Oscars host Jimmy Kimmel continued at the 89th Academy Awards ceremony, where Kimmel jokingly mocked Damon's performance in the movie.[27]
References[edit]
^ Jump up to: a b c d e Masters, Kim (2011-11-22). "Cameron Crowe Returns With 'We Bought a Zoo'". The Hollywood Reporter. Retrieved 2001-11-28.
^ Jump up to: a b c "We Bought a Zoo". Box Office Mojo. 2012. Retrieved 2012-07-05.
Jump up ^ Rich, Katey (2010-05-17). "Cameron Crowe Commits To We Bought A Zoo For Late 2011 Release". Cinema Blend. Retrieved 2010-10-29.
Jump up ^ Harris, Scott (2010-06-24). "Matt Damon May Lead Cameron Crowe's 'We Bought a Zoo'". Moviefone. Retrieved 2011-10-29.
Jump up ^ "Thomas Haden Church Joins 'Killer Joevbvb' & 'We Bought A Zoo'". ScreenRant. Retrieved 2010-10-29.
Jump up ^ Rawden, Mack (2010-10-20). "Colin Ford Cast As Matt Damon's Son In We Bought A Zoo". Cinema Blend. Retrieved 2011-10-29.
^ Jump up to: a b Fleming, Mike (2010-11-09). "Cameron Crowe Taps His 'Almost Famous' Alter Ego For 'Zoo,' And Elle Fanning, Too". Deadline. Retrieved 2011-12-29.
^ Jump up to: a b c d Kit, Borys (2010-05-17). "Cameron Crowe to direct 'Zoo'". The Hollywood Reporter. Retrieved 2011-09-27.
^ Jump up to: a b Mariotti, Greg (2011-08-01). "Sigur Rós Frontman Jónsi Scoring We Bought A Zoo". The Uncool. Retrieved 2011-09-27.
^ Jump up to: a b Chitwood, Adam (2011-12-19). "39 Songs Contend for Best Original Song Oscar; Nominees Include THE MUPPETS and CAPTAIN AMERICA: THE FIRST AVENGER". collider.com. Retrieved 2011-12-27.
Jump up ^ "We Bought A Zoo Soundtrack". 2011-11-03. Retrieved 2011-12-30.
Jump up ^ "We Bought A Zoo – Complete Soundtrack". 2011-12-29. Retrieved 2011-12-30.
Jump up ^ "Smallest Second Weekend Drops". boxofficemojo.com. Box Office Mojo. Retrieved March 27, 2014.
Jump up ^ "We Bought a Zoo (2011) on Rotten Tomatoes". Rotten Tomatoes. Retrieved 2011-12-29.
Jump up ^ "We Bought a Zoo on Metacritic". Metacritic. Retrieved 2011-12-29.
^ Jump up to: a b c Ebert, Roger (2011-12-21). "We Bought a Zoo review". Chicago Sun-Times. Retrieved 2011-12-23.
^ Jump up to: a b c Dargis, Manohla (2011-12-22). "A Modern-Day Ark, With Children, Animals and Even Romance". The New York Times. Retrieved 2011-12-29.
^ Jump up to: a b c Rooney, David. "We Bought a Zoo: Film Review". The Hollywood Reporter. Retrieved 2011-12-30.
Jump up ^ Knegt, Peter (December 14, 2011). "'The Artist' Tops Phoenix Film Critics Awards". Indiewire. Retrieved July 15, 2012.
Jump up ^ Knegt, Peter (December 19, 2011). "'Descendants,' 'Drive' Lead Satellite Award Winners". Indiewire. Retrieved May 29, 2015.
Jump up ^ "‘Rolling in the Deep’ Rolls Away With Song of the Year at 2012 BMI London Awards". BMI.com. October 9, 2012. Retrieved May 29, 2015.
Jump up ^ "Teen Choice Awards 2012: Complete Winners List". MTV. July 22, 2012. Retrieved May 29, 2015.
Jump up ^ "33rd Annual Young Artist Awards - Nominations / Special Awards". YoungArtistAwards.org. Retrieved May 29, 2015.
Jump up ^ "Ben sees Dartmoor Zoo rebuilt in Californian hills". This is Plymouth. 2011-07-23. Retrieved December 27, 2011.
^ Jump up to: a b c d e f Mee, Benjamin (2007-06-23). "My Family & Other Animals". The Guardian. Retrieved 2011-12-07.
Jump up ^ Salter, Jessica (3 Mar 2012). "We Bought a Zoo: the true story behind the film". Daily Telegraph. Retrieved 30 Nov 2013.
Jump up ^ "Oscars host Jimmy Kimmel slams Matt Damon's 'We Bought a Zoo'".
External links[edit]
Official website
Dartmoor Zoological Park official website
We Bought a Zoo on IMDb
We Bought a Zoo at Rotten Tomatoes
We Bought a Zoo at Box Office Mojo
[hide]
v
t
e
Cameron Crowe filmography
Director
Say Anything... (1989)
Singles (1992)
Jerry Maguire (1996)
Almost Famous (2000)
Vanilla Sky (2001)
Elizabethtown (2005)
Pearl Jam Twenty (2011)
The Union (2011)
We Bought a Zoo (2011)
Aloha (2015)
Writer only
Fast Times at Ridgemont High (1982)
The Wild Life (1984)
Television
Roadies (2016)
Retrieved from "https://en.wikipedia.org/w/index.php?title=We_Bought_a_Zoo&oldid=803685930"
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