Assertion: close corporation's shareholder | /r/CapableOf | pay tax
Facets:
value: on dividends
type: OTHER
value: on income
type: OTHER
value: on all profits
type: OTHER
value: on money
type: TRANSITIVE-OBJECT
value: on the income of the corporation
type: TRANSITIVE-OBJECT
value: in the year
type: TEMPORAL
value: on the value of their benefits
type: OTHER
value: in a manner
type: MANNER
value: at their individual tax rate
type: MANNER
Source sentences:
text: Instead, the individual shareholders (owners) must include their share of the corporation’s profits on their personal tax returns, paying tax at their individual tax rate.
text: In other words, the business income is considered as the owner's or shareholder's income, and the owner/shareholder pays the tax on his or her personal tax return.
text: If the company declares a dividend, the shareholders must report the dividend as personal income and pay more taxes.
text: The main disadvantage of the C corporation is that it pays tax on its earnings and the shareholders pay tax on dividends, meaning the corporation’s earnings are taxed twice.
text: As noted above, shareholders of corporations pay tax on the dividends they receive from the corporation, in addition to the income tax imposed on the corporation itself.
text: Gains and losses are passed on to shareholders who pay taxes in a manner similar to partnerships.
text: While some people feel that a corporation enhances the image of a small business, one disadvantage is the potential double taxation: The corporation must pay taxes on its net income, and shareholders must also pay taxes on any dividends received from the corporation.
text: Shareholders pay taxes on all profits in the year earned, whether or not they are distributed.
text: For example, if the profits of the S corp are $100,000 and there are four shareholders, each with a 1/4 share, each shareholder would pay taxes on $25,000 in profits.
text: Income from C corporations are subject to double taxation; that is, the corporation pays taxes on its net income and then the shareholders also pay taxes on the income that they receive from the corporation.
text: The shareholders still have to pay taxes on money that they receive from the corporation, but an S corporation does not pay taxes on its net income.
text: In each of those cases the entity may write off the costs of the benefits, but any employee/shareholder who owns more than 2% of the entity will pay taxes on the value of their benefits received.
text: Corporate shareholders pay taxes on the income of the corporation only when they take dividends.
text: The essential feature of an S corporation is that shareholders pay the taxes on income, not the corporation.
text: If two shareholders equally own an S corporation that makes $100,000, for example, each shareholder adds $50,000 of income to his or her return and then pays the tax on that $50,000 profit from the S Corporation.