Explain the tax effect based on providing $180,000 per year for the client’s salary and $70,000 per year for his daughter’s salary if they withdraw cash from the business or pay dividends as appropriate.

Please incorporate necessary (filled out) tax forms like the K-1 and the federal tax form to be used.

Justify the percentage of ownership the client’s daughter should have in the business based on the type of business entity recommended. Consider the tax law in reference to the recommendation and how the decision will affect the daughter’s tax return.

Answer rating: 100% (QA)

Tax Benefits and Liability for S Corporations Grounded on the nature and type of the business of providing services forming S corporation is recommendable for Bob S corporation comprises a number of a... View the full answer