Corporation Taxable Income
March 8th, 2010
Question: A company had revenue of $170,000 and incurred business expenses of $50,000 in 2007?
The owner of the company, is single and has no dependents. He uses the $5,350 standard deduction in Computing Taxable Income for 2007. The personal exemption amount for 2007 is $3,400. This is his only source of income. Compute after-tax income if:
a. the company is a sole proprietorship, and the owner withdraws $80,000 for living expenses during the year.
b. the company is a corporation, the owner is the sole shareholder, and the corporation pays out all of its after-tax income as a dividend to the owner.
c. the company is a corporation, the owner is the sole shareholder, and the corporation pays the owner a salary of $89,950. This will increase the corporation’s business expenses to $139,950.
Answer: And your question is…..? Let me try to guess. You’re wondering if this is a viable business. The incorporation by a sole proprietor scares the hell out of me. There’s another business in here somewhere. For example; XY owns 2 motels, incorporated, so there’s one set of books. One loses money, the other makes money and supports the other. XY puts the loser up for sale; and here’s the books. That’s legal.
| | Effect of nondeductible, noncapital expenses on S stock basis and taxable income.: An article from: The Tax Adviser $5.95 This digital document is an article from The Tax Adviser, published by American Institute of CPA’s on November 1, 1995. The length of the article is 1389 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.From the supplier:… |
| | Debt-financed income and UBTI. (unrelated business taxable income): An article from: The Tax Adviser $9.95 This digital document is an article from The Tax Adviser, published by Thomson Gale on October 1, 2007. The length of the article is 661 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.Citation DetailsTitle: Debt-finance… |
| | Ifa: The Influence of Corporate Law and Accounting Principles in Determining Taxable Income (IFA Congress Series Set) $92.16 The interaction between accounting, company law, and taxation is a key issue in corporate regulation. These three areas have differing kinds of regulations with different objectives and varied techniques of regulation and interpretation. Moreover, views on all of these factors vary from country to country. How these fields interact has significant ramifications. It affects the future develo… |
Canfor Pulp Income Fund Provides Tax Information for 2009 Distributions
VANCOUVER, BRITISH COLUMBIA–(Marketwire – Feb. 26, 2010) – Canfor Pulp Income Fund (the “Fund”) (TSX:CFX.UN) today reported the tax information for cash distributions declared in 2009 to unitholders resident in Canada and United States.
Legal Responsibilities | Deceased-Tax-Returns-Canada.com (Toronto Services)
Posted in 
Tags: