The Tax Questions Blog

Posts Tagged ‘corporation taxable income calculator’

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.

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)