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6 Cards in this Set
- Front
- Back
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Tax benefit of Start up Losses
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- owners of pass through entities can deduct losses immediately against other income
- Corporations can carry NOL forward when they have positive income |
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Avoiding double tax on business income
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Passthroughs
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Income Shifting among family members
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Making children owners will shift income and dollars
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Statutory Restrictions on income shifting to family members
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must be qualified to work in active operation
- can be a partner when property is income producing property |
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Transaction Costs
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gift tax is paid by the donor
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Getting Cash out of the corporation
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Dividends are double taxation. Salaries are taxed only at the individual level and are deductible by the corporation
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