ITX - 35B Flashcards
Entity (Advantage): Dividends and capital gains taxed at low rates to shareholders
C Corporation
Entity (Advantage): Income taxed at rates of separate tax entity
C Corporation
Entity (Advantage): Exclusion for 70% of dividends received
C Corporation
Entity (Advantage): Deductible employee benefits
C Corporation
Entity (Advantage): Passive losses are deductible against active income
C Corporation
Entity (Advantage): Income-splitting among up to 100 investors
S Corporation
Entity (Advantage): Pass-through of income and losses, up to basis
S Corporation
LLC
Partnership
Limited Partnership
Entity (Advantage): No self-employment tax on earnings
S Corporation
Entity (Advantage): No accumulation earnings tax or reasonable compensation limit
S Corporation LLC Partnership Limited Partnership Sole Proprietorship
Entity (Advantage): Income-splitting among unlimited investors
LLC
Entity (Advantage): Basis is increased for liabilities and nonrecourse debt
LLC
Partnership
Limited Partnership
Entity (Advantage): Income-splitting among owners
Partnership
Limited Partnership
Entity (Advantage): No income from the distributions of property or in a liquidation
Partnership
Entity (Advantage): No self-employment income is received
Limited Partnership
Entity (Advantage): All income and losses are reported by the owner
Sole Proprietorship
Entity (Advantage): Corporate tax breaks, such as fringe benefits
Personal-Service Corporation
Entity (Advantage): No income tax advantages over the C corporation
Personal Holding Company
Entity (Disadvantage): Double taxation of earnings and in liquidation
C Corporation
Entity (Disadvantage): AMT applies unless it is a small ___
C Corporation
corporation