Tax-Related Determinants of the S-Corporation
Conversion Choice Dividend Taxes and Taxable Corporate Income
"It is somewhat easier for an S-corporation
to make transfers, whether by gift or estate.
Real estate firms may earn significant revenues from passive sources, such as rents, which makes their organization as an S-corporation
or a PC with S-corporation
tax treatment less desirable.
gets its name from the fact that its tax rules are described in Subchapter S of the Internal Revenue Code.
But help appears to be on the way for the beleaguered S-Corporation
, in the form of pending legislation that could relieve many of the heavy burdens that have been placed on S-Corporations
by confining tax laws.
For example, suppose your client is the owner of an S-Corporation
and took a $100,000 salary in 2013.
Even if your construction company is a pass-through entity (S-corporation
or partnership), decisions made at the entity level can impact the individual AMT liability of the owners.
What is an S-Corporation
? What could be a small businesses' savior.
Sole proprietorship under principal partner 35% S-corporation
34% Limited liability corporation 21% C-corporation 9% Note: Table made from bar graph.
BCI, an Alaska S-Corporation
, is a wall panel, roof and floor truss design and manufacturing company that sells primarily in the Anchorage and Mat-Su areas, and statewide in Fairbanks, Tok, Glennallen, and on the Kenai Peninsula.
The plan would enable small-business owners, including partners and S-corporation
stockholders who own more than 2 percent of the stock, to participate in a cafeteria plan if they worked in the business.
If partnership tax treatment is taken, profits and losses can Be allocated as preferred to owners and, if desired, owners can select to be treated as a corporation or S-corporation
for tax purposes.