Alex Goorgle wrote:

- quote -

Yes, *BUT* you do have to check out all other potentially
applicable taxes. For instance, I don't know of any state
that modified its income tax to provide for a lower rate for
dividends, so you'll have to check out the impact of double
taxation at the state level.

As well, the IRS might have an incentive to question whether
the $50,000 should have been paid out as salary.

--
Ed Zollars, CPA
Phoenix, Arizona

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I only say "hidden" because I haven't heard it discussed
anywhere.

The tax bracket for a C corporation is 15% up to $50K.
With the new double-taxation at only 15%, that makes for
a combined tax rate of 30%.

In a whole lot of situations, doesn't that effectively
extended the 30% bracket for a business owner by $50K?

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