conduit tax treatment

conduit tax treatment

Income passing through an entity without taxation at that level,but only at the recipient's level. A subchapter S-corporation, a partnership, and a limited liability company are all examples. Contrast with a C-corporation, which pays income taxes on profits and then uses after-tax dollars to pay dividends to shareholders,who pay taxes on the dividends.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.