Omar, an individual in the 37% tax bracket, wants to shift some of his income to a new corporation in order to take advantage of the 21% corporate tax rate. Omar plans to avoid any tax on dividends by retaining all earnings within the corporation. Will Omar's plan work?

Omar's ability to achieve tax savings by shifting income to a corporation may be limited by __________ . Omar could be subject to a_______ % penalty tax on ______ the corporation.

Answer rating: 100% (QA)

Omars ability to achieve tax savings by shifting income to a corporation may be limited by either AE... View the full answer