Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: hghcpa Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121592  
Subject: Re: subchapter s Date: 8/16/1999 10:30 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
While S corp election may not be advantageous for all taxpayers IMHO it would warrant thorough investigation on your part. I personally feel that in the right environment it is an excellent choice - even for farmers.

First of all - retain a professional who can assist you in the analysis and give you the pros and cons. This is not something that can be done in a forum such as this board since it requires a detail analysis of your individual situation.

Your ability to control the dollars spent in SE tax is certainly one of the prime considerations. For those making 50-80k per year in earnings this becomes the most advantageous.

S-corps also can flow farm income to the individual returns. The shareholder can use this income in the calculation of whether they qualify as a "farmer" which entitles them to filing and paying tax by March 1 of each year without estimated tax penalty.

I agree with KK and Ed that the issues regarding benefits for 2% shareholders stink - but most of this lies in the health insurance area and Congress is getting more lenient in this area, and hopefully these premiums will be 100% deductible with this new tax bill.

BTW - NO REAL PROPERTY IN THE CORPORATION. Own it individually or in an LLC and rent it to the corporation.

As previously stated - retain a professional to assist in your decision process

pete
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Looking at Currency Ratios
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement