Now under the agency s glare: Subchapter S corporations, a popular vehicle of choice for many entrepreneurs.
Starting in 1996, banks were allowed to report their incomes as subchapter S corps.
FORBES: The Equality Of Reaganomics, And Fallacious Leftist Dissent
By 2001, subchapter S corporations accounted for almost one-fourth of all before-tax corporate profits.
FORBES: The Equality Of Reaganomics, And Fallacious Leftist Dissent
Most small businesses are organized as limited liability companies, partnerships and subchapter S corporations.
FORBES: Coming Soon From Obamacare: A Single-Payer Nightmare For Delaware
Up next, another case focusing on Subchapter S, this time coming out of the Eighth Circuit.
Owners of Subchapter S firms might also escape the tax if they are actively involved in the business.
The law bars IRAs from holding collectibles (like stamps, art or antiques), insurance or stock in Subchapter S corporations.
Even more important, owners of limited liability corporations (LLCs) and subchapter S corporations will see their state income taxes eliminated entirely.
FORBES: It's Not Just The Feds, The States Face Their Own Fiscal Cliffs, Too
By 1997, more than half of all U.S. corporations were subchapter S corporations reporting their income on individual income tax returns, primarily among the top 1%.
FORBES: The Equality Of Reaganomics, And Fallacious Leftist Dissent
An S corporation, for United States federal income tax purposes, is a corporation that makes a valid election to be taxed under Subchapter S of Chapter 1 of the Internal Revenue Code.
FORBES: Two Thirds of US Corporations Don't Pay Federal Income Tax: True But Horribly Misleading
The most important change is that the much lower individual income tax rates after tax reform, from a top rate of 70% when Reagan entered office to 28% after the reform, caused billions in business income to switch from corporate tax returns to individual tax returns as subchapter S corporations, partnerships, LLCs (limited liability partnerships), and proprietorships.
FORBES: The Equality Of Reaganomics, And Fallacious Leftist Dissent
应用推荐