Re: [taxchat] C Corp w/ large NI

Cris:

 

Several item here:  1) The personal service corporation usually refers to occupations in the "learned and licensed" professions, such as doctors, attorneys, CPAs.

2) C corporations do not have a special capital gains rate for sale of assets, stocks, etc.  Everything is taxed at the regular corporate rates.  3) The C corp could fall into a Personal Holding Company category, if too much income is from passive investments.  The PHC tax rates tax the income remaining after paying the regular tax.

 

If the guy doesn't believe you, you can count on having problems later.  Pick and choose!

 

Good luck.

 

Bob S.

 

Robert H. Somerville, CPA
405 S State College, Ste 201
Brea, CA 92821
Phone:    714-529-4711
Fax:        714-529-0334   
Email:    rsomerville@survivetaxes.com
Web:      www.survivetaxes.com

 

Unless expressly stated otherwise in this communication, this advice is not intended
to be used, and cannot be used, for the purpose of avoiding federal tax penalties.

 

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IRS Circular 230 Disclosure: Unless expressly stated otherwise in this transmission, any tax advice contained herein, forwarded with or attached to this message was not and is not intended to be used, nor may it be relied upon or used, by any taxpayer for the purpose of (1) the avoidance of any tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions, or (2) promoting, marketing or recommending to another party any tax transaction or tax-related matters that may be addressed herein.

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