Distributions of earnings by a C corporation are taxed at the shareholder level as dividend income. Why are the earnings of an S corporation that are distributed to shareholders not similarly treated?
Answer to relevant QuestionsSandra and Renee each own 50% of the stock of Olive, an S corporation. They acquired their stock four years ago when Olive was formed. They have decided to dispose of their ownership interests in the corporation, and a ...Roscoe contributes a personal use asset with an adjusted basis of $15,000 and a fair market value of $28,000 on the contribution date. Determine if any gain or loss is recognized and the basis under the following ...All of the Big 4 accounting firms changed their ownership form from a gen eral partnership to a limited liability partnership. Discuss the legal and tax ramifications of this modification of ownership form. Gail and Harry own the GH Partnership, which has conducted business for 10 years. The bases for their partnership interests are $100,000 for Gail and $150,000 for Harry. GH Partnership has the following assets: Gail and ...Ovate, Inc., earns $140,000 in book income before tax and is subject to a 35% marginal Federal income tax rate. Ovate records a single temporary difference. Warranty expenses deducted for book purposes are $8,000 of which ...
Post your question