Ok, I'm probably waaaaay off here, but bear with me....Say I form a real estate holding corporation, which would earn income from rents paid by the tenants and capital gains from sales of properties and stock investments. (Sounds great so far, right?)I've been researching and learned that you can either set up the corporation as a flow-through entity, where the owner would declare the corporation's income as her own on her taxes, or set it up where the the corporation has its own tax return and the owner is taxed on income dispersed. (I've probably already messed this up! :)My question is this: It seems that if it's set up as a flow-through, you're only taxed once on the capital gains/ income, whereas if the corporation does its own taxes, it pays on the capital gains and then I would also get taxed on the income that I dispersed to myself as owner. Is this right??Also, as a flow-through entity, would I still be able to take all of the normal and reasonable tax deductions on the business expenses?Any direction would be helpful and any links or book titles would be fantastic!Thanks,K
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