Subject to passive loss rules at owner level. Subject to passive loss rules at owner level. Like the passive loss rules, AMT is an attempt to close tax loopholes by not allowing deduction for items such as accelerated depreciation, oil and gas preferences, some itemized deductions, and applying a flat rate of tax. Pass-through AMT items to shareholders. Same as partnership Retirement Plans Payments are deductible if nondiscriminatory plan is at same percentage rate as employees.
Payments are deductible if nondiscriminatory plan is at same percentage rate as employees.
Same as partnership Tax Years Business Purpose Fiscal years are available to pass-through entities and PSCs if they can prove that at least 25 percent of gross receipts are received in the last two months of the proposed fiscal year. Generally must use tax year of shareholders or make Section 444 election. Risk of accumulated earnings tax. Personal Service Corporation is a company whose principal activity is providing services in the field of health, law, engineering, architecture, accounting, actuary, science, performing arts, consulting. If these personal services are provided substantially by employers, owners, the company is considered to be a PSC and subject to certain rules and regulations.