C Corp Taxation and Dividends Explained - A Step-by-Step Guide for Business Owners
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- čas přidán 29. 04. 2023
- Starting a business can be a great way to make money, but it can also be relatively complicated. In this video, we're going to explain C Corp taxation and dividends in detail.
If you own a business and are looking to know about C Corp taxation and dividends, then this video is for you! We'll go over everything in detail and help you understand C Corp taxation and dividends.
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🔥 Want to become a client of Jasmine's? Accounting, IRS Tax Resolution, and Tax Leverage: www.taxleverage.com
🔥 Accountant looking to grow your firm? See how Jasmine can help: taxleverage.com/welcome
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ABOUT JASMINE DILUCCI, JD, CPA, EA
Jasmine DiLucci has specialized in tax since high school when she first became licensed to represent taxpayers before the IRS.
Now as a tax attorney and CPA, she works with individuals and business owners across the nation to resolve IRS tax issues, streamline accounting, and minimize tax for business owners.
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Disclaimer: This information on this channel is for educational purposes only and does not constitute professional legal or tax advice.
#ccorporation #ccorp #ccorptaxation #jasminedilucci
Maybe just a bit of a tip for your CZcams channel to improve watch retention rate and other analytics. There's many moving parts that you talked about, so it will be good for your viewers to show graphics or any visuals for the viewers so they don't lose track of what you are talking about. I got most of what you talked about, but I had to write it and draw it out for myself to understand more. I think this little tip might help boost viewership and retention rate for your channel.
Thanks! Working on it :)
currently studying for Corp. Tax final in an LLM program and was struggling with E&P. Found this super helpful. Thank you!
How did you do?
Super helpful. Thanks.
Glad it was helpful!
Phenomenal very well done 👍🏾
thanks!
Any chance you can do a video for tips around entity structures for an active trader / family office situation (using trader tax status) ?
Does E&P distribution taxed at individual level at 10-37%? What is the tax rate for short term & long term capital gain?
The one potential flaw in taking money out tax free as a shareholder return of capital is that if the corporation has a sizeable amount in current & accumulated E & P is that any distribution is deemed to be a dividend first. Therefore, the only way this could make sense for the corporation to never have any E & P. So, it would be business suicide to run a corporation in such a way that it never has E & P.
Question... my husband is 100% shareholder in a 3rd generation c corp, and he's looking to make a change. The real estate is in the c corp too. If we just lease the property while trasitioning to an s corp, then after 5 years sell it. Can we avoid the double taxation?
Yes that's a common strategy to avoid the double tax on appreciated assets as long as executed properly!
You make it sound so simple.
U r the best
For c corp, do u include federal income tax paid with current year expense ?
Federal income tax is an expense on the books, but not on the tax return. If you're prepping your own return, then you would look to Schedule M-1 where there's a line for federal income tax when calculating the difference from book net income to tax net income.
@@taxleverage Agreed. A Schedule M1 reconciliation is the best way to prove to an IRS audit examiner that the corporation legitimately had net income on the books and a net operating loss on the return.
Can we take 199a on personal income from w2 plus 1099 dividend from CCorp?
Nope! Only for passthrough income from Partnerships/S-Corps, which would not be the w-2 income or 1099 dividends from C-Corps
How to Separate Your Personal and Business Taxes
Do I need new EIN if I either convert from LLC to C Corp entity versus LLC taxed as C Corp only?
The IRS actually has a great page on when a new EIN is required: www.irs.gov/businesses/small-businesses-self-employed/do-you-need-a-new-ein
@@taxleverage thank you so much!
@@leef.4242 of course!
What is the difference between having a C CORP vs having a LLC taxed as a C Corp??
Federal tax is the same. The main difference will be legal protections at the state law level. The main difference is that some states will offer charging order protection for LLCs, which means that if you owe money to a creditor then they can only have financial rights to distributions without management rights of the business.
@@taxleverage Is it common to have LLC taxed as a C Corp? Does it raise any red flags with the IRS or state governments?
Yes it's common. I haven't seen any issues or 'red flags' when it comes to the IRS. A state may require a separate C-Corp election or proof of the IRS approval of the C-Corp election. You would need to file Form 8832 to get C-Corp treatment for an LLC, versus it's automatic on creating an Inc.@@bergencounty6602
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I know some CPAs with a masters in tax or just a lot of experience in reading the law that will give you some competition just cause they didn’t have federal civil procedure which I have had they know a lot of Tax I have one CPA in mind that I would I put up against any tax lawyer so I would really just lay off the Cpa. I don’t think it’s right, I didn’t realize the EA exam is easy I don’t know never took it not interested
A lot of CPAs can know tax law, but becoming a CPA and taking the licensing exam isn't what got them there. Tax law focused courses (usually only in MST, JD, or LLC) and experience are what gets someone there rather than the license.
@@taxleverage forgive any statement that doesn’t come out right because I’m so busy at this point in my life I agree with you the licensing when I chat through the bar of view course the lawyer that taught the class it was excellent but it’s Elementary just like I think constitutional law in law school is very basic. I’ve been listening to scholars for probably over a decade. I’m not a scholar, but I love constitutional law probably as much as I love Tax law, but I agree with you you just getting the license now