tax question- c corp - Posted by Laure

Posted by JHyre in Ohio on May 23, 2000 at 10:19:22:

He’s not all wet…IRS can aggregate brackets to avoid use of multiple corps, all maxing out at 15%. The fact that different businesses are involved doesn’t stop them, though it does reduce the chance that they’ll in fact aggregate the brackets.

John Hyre

tax question- c corp - Posted by Laure

Posted by Laure on May 23, 2000 at 02:41:50:

I was interviewing a new CPA today and he asked me why in the world I have a C corp, let alone be creating another one. NO, he didn’t talk about double taxation, thank goodness. He did say that I can’t get my money out of the corporation without paying 39% tax on it.

The only disturbing thing he said was this: The IRS will add together the net income from both the C Corps and tax them as one entity. I understand this if they have the same business purpose ie. both flip properties. However, Corp #1 does rehabs, and Corp #2 is doing computer consulting, contracting and property management. NO FLIPS OR REHABS. He said the deciding factor was the same individuals are involved in both corps.

So, tell me… is this guy all wet??

Laure :slight_smile: