Corporate Taxes - Your Tax Credits
As is the case with individuals as well as corporations, tax credits are still better for you than tax deductions. Take a look at our list ofavailable and often overlooked corporate tax credits.
This credit provides an incentive to hire individuals from targeted groups that have a particularly high unemployment rate or other special employment needs. This credit is equal to 40% of the first $6,000 of qualified first-year wages for each employee?...more
This loophole is simple to setup and follow. All you have to do is to lend your corporation some money. This works as long as you are a shareholder in your company but don’t own more than 50% of the stocks...more
Shielding Corporate Earnings from Accumulated Earnings TaxAccumulated earnings tax is 39.6% of your company’s taxable income. This means you lose almost 40% of your earnings when the company makes more money...more
Finding the tax rate for a corporation is not as easy as it is to figure a tax rate for an individual. This is because as an individual need only determine his taxable income, most corporations need to use several tax rates to determine their tax liabilities. Take a look at our easy steps to figuring your corporate tax rate.
• Tax Relief Extension of 1999A most significant change in this new law is that for sales entered into after December 17, 1999, taxpayers are prohibited from using the installment method of accounting for dispositions of property that would otherwise be reported using an accrual method of accounting?
S corporations can be particularly favorable for start-up companies. If a business shows losses in some years, the owner may claim those losses in the current year of the loss on their personal tax return?
• Filing Your C Corporation TaxesAnother possible tax advantage of corporations is that corporations can pay for employee benefits, such as health insurance, disability and up to $50,000 in life insurance on a tax-deductible basis?
• Protecting Your Company from Alternative Minimum TaxYou have to file form 4626 Alternative Minimum Tax if your corporation’s tentative minimum tax is more than it’s regular tax.
• Charitable Contributions and CorporationsOne of the best ways out there to save a corporation some taxes is by making charitable contributions. If a company feels that it is going to get hit with a large capital gains tax for that year, they can make a charitable contribution to any U.S. qualified charity.
• Comprehensive Case Resolution for large businessesComprehensive Case Resolution is the new pilot program being introduced by the IRS division for (Large and Mid-size businesses in) Appeals. Under this pilot program, after the taxpayer requests for it or volunteers for it by sending in application, a select team of Appeals officers would be selected and assigned to individual cases.
Starting this coming tax year, Form 8869, Qualified Subchapter S Subsidiary Election, will be used by every parent S Corporation for it’s eligible subsidiaries.
• The Criminal Investigation DivisionDuring a tax audit, if an auditor suspects fraud, he can impose penalties himself or he can refer you to the CID, Criminal Investigation Division. The CID is the IRS police force and is divided into two factions, General Enforcement (for ordinary taxpayers) and Special Enforcements (to target unions, crime and drugs.)
• Job Related Training CoursesAnytime you take an educational course that might help you with your work or trade you might be able to write it off as a business expense.
