What Is an S Corporation?
An S Corporation is a C Corporation that elects “Subchapter S” status. All S Corporations begin their lives as C Corporations; Corporations elect to change their status to S Corporations.
The S Corporation Election is made by the filing IRS Form 2553 before the expiration of the 15th day of the third […]
How to Make the S Corporation Election
All S Corporations begin their lives as C Corporations–no Secretary of State in the US makes a distinction between S Corporation and C Corporation. The S Corporation election is just that: an election.
The S Corporation Election is made by filing IRS Form 2553 before the expiration of the 15th […]
First, a definition. An LLC is a statutorily created form of business entity that combine features of both partnerships and corporations. For more information on the differences between these business entities, please read: Corporation vs. LLC vs. Partnership.
Now, on to LLC Tax Advantages
LLC Tax Advantage: Pass-Through Taxation
LLC’s enjoy pass-through taxation. Here’s how it works: C […]
Federal Income Tax Brackets
Federal Tax Brackets
February 2008
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Schedule X — Single Filer
If taxable income is over–
But not over–
The tax is:
$0
$7,825
10% of the amount over $0
$7,825
$31,850
$782.50 plus 15% of the amount over 7,825
$31,850
$77,100
$4,386.25 plus 25% of the amount over 31,850
$77,100
$160,850
$15,698.75 plus 28% of the amount over 77,100
$160,850
$349,700
$39,148.75 plus 33% of the amount over 160,850
$349,700
no limit
$101,469.25 plus 35% of […]
LearnAboutLaw Staff July 2007
Owners of businesses often inquire as to whether organizing as an LLC offers any tax benefits. The following are some ideas on how an LLC can be organized in a manner that gives a net tax savings. As with any taxation or legal issue, you should seek professional guidance before putting […]
LearnAboutLaw Staff July 2007
Owners of businesses often inquire as to whether organizing as a Corporation offers any tax benefits. The following are some ideas on how a Corporation can be organized in a manner that gives a net tax savings. As with any taxation or legal issue, you should seek professional guidance before putting in […]
July, 2007
Had a root canal? Broke a bone? Well, what you spend on health care might be deductible.
The Internal Revenue Service allows a deduction of medical costs if such costs are more than 7.5 percent of your adjusted gross income–that’s quite a doctor bill for some folks. Expand your thinking, though, and you […]
Here we take a closer look at the phenomenon of 1099 Cancellation of Debt income following a foreclosure.
Why Foreclosed Homeowners Receive 1099s for Cancelled Debt
First, the basics: if you owe a debt to someone else, and that debt is forgiven, the IRS Code treats that forgiven debt as income to you. Does it make sense? […]
A dividend is payment declared by a company’s board of directors (or board of managers in the case of an LLC) and given to its shareholders or owners out of the company’s current or retained earnings. Cash dividends are taxable income to the owner that receives the dividend; distributions are taxed the same way. However, […]