Yes. The major federal income tax advantages of operating as an S corporation include:
• single level of tax – Generally, the income of an S corporation is passed through to its shareholders and is taxed only once to the shareholders.
• losses – Generally, S corporation shareholders may deduct their shares of the corporation's net operating loss on their individual tax returns in the year the loss occurs.
• income splitting – S corporation shareholders can split income amongst family members through gifts or sales of stock thereby shifting income tax liability to family members in lower tax brackets.
• alternative minimum tax – The AMT does not apply to S corporations (although their shareholders may be subject to the AMT).
Considering a Tax Professional? For no obligation free consultation contact us today!
866-936-0430 Toll Free
No comments:
Post a Comment