SWFT Corp Partner Estates Trusts
42nd Edition
ISBN: 9780357161548
Author: Raabe
Publisher: Cengage
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Whilst searching for related literatures for her thesis study, Jackie found a tax law which provides that proceeds from the collection of taxes are to be used to rehabilitate a private organization under financial stress.
This clearly violates what constitutional right?
a. right to just compensation
b. right to due process
c. right against self-incrimination
d. right to equal protection of the law
Which of the following is correct? 1 It would be cheaper for ABCL to own and pay for the insurance policies because the corporate earnings in a small business corporation like ABCL are sheltered from tax, therefore the funds required to pay the insurance premiums could come out of completely tax-free corporate earnings. 2 It would be cheaper for ABCL to own and pay for the insurance policies because the company can deduct the premiums paid as a business expense, while the individuals would have to pay the premiums with after-tax dollars. 3 It would be cheaper for ABCL to own and pay for the insurance policies because a portion of corporate earnings in a small business corporation like ABCL are only taxed at around the 20% marginal rate, therefore lesser pre-tax corporate earnings would be required to generate the necessary after-tax funds to pay the insurance premiums.
(A) 1 only.
(B) 2 and 3 only.
(C) 1 and 2 only.
(D) 3 only.
Which of the following would be a good question to ask before advising a client to move from a Schedule C to S corporation tax treatment?
Review Later
How does moving to S corp tax treatment impact the ability to pump tons of money into a tax-deferred retirement plan?
What really are the net savings, after accounting for all the extra fees attached to operating an S corporation?
Is this client likely to actually do the compliance stuff associated with operating an S corporation, or is the "extra red tape" possibly (read: probably) going to become a nightmare for the client?.
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