Hi guys, Welcome to the Advanced Video Search Engine, and you are watching Business Owner Pays Tax On S-Corporation Distribution. That video is uploaded by Boris Musheyev, CPA at 2023-03-14T16:00:25-07:00. We are promoting this video only for entertainment and educational purpose only. So, I hope you like & enjoy it. [TwvBjCWeelw]
| Name | Business Owner Pays Tax On S-Corporation Distribution |
| Video Uploader | Video From Boris Musheyev, CPA |
| Upload Date | This Video Uploaded At 14-03-2023 23:00:25 |
| Video Discription | Business Owner Pays Tax On S-Corporation Distribution Download FREE PDF: 7 Write Offs Every S-Corporation Business Owner MUST Know http://bit.ly/3DPw5UZ Are you a business owner who operates as an S corporation? If so, you may be familiar with the concept of distribution taxes, which are additional taxes that S corp owners may have to pay on top of their regular income tax. In this video, we'll explore what distribution taxes are, why they exist, and how they can impact your bottom line. First, let's define what we mean by distribution taxes. When an S corporation makes a profit, it can distribute that profit to its shareholders in the form of dividends. Unlike regular C corporations, which are taxed on their profits at the corporate level, S corporations are "pass-through" entities that don't pay federal income tax on their profits. Instead, the profits flow through to the shareholders, who report the income on their personal tax returns and pay taxes on it at their individual tax rates. However, S corporation shareholders may also have to pay additional taxes on their share of the profits in the form of distribution taxes. They are intended to prevent S corporations from being used as a tax shelter for passive income. So, why do distribution taxes exist? The idea is that if an S corporation has built up a large amount of passive income over time, such as from investments or real estate holdings, the shareholders should pay taxes on that income as if it were earned at the corporate level. This helps to level the playing field between S corporations and C corporations, which are subject to corporate income tax on their profits. In summary, distribution taxes are an additional tax that S corporation owners may have to pay on their share of the profits, without proper tax planning. While they can add complexity to your tax situation, understanding how they work and planning for them can help you minimize their impact on your bottom line. ☎️ Schedule your FREE Tax Advisory Session - https://www.TaxPlanningCall.com/ ➡️If you make $10 Million or more in your business; Schedule your call here: ☎️ https://bit.ly/over10million 0:00 Business Owner Pays Tax On S-Corporation Distribution 01:40 How do S-Corporation distributions work? 04:07 Taxes on the excess distribution 10:41 Loan to shareholder strategy 🤩 If you are looking for a really easy to use payroll software, I personally use and recommend to my clients Gusto Payroll Software - https://gusto.com/r/boris466 P.S. When you sign up for Gusto, you get a $100 visa gift card 🤑 Related Videos: 🏡 When is the Best Time To Switch From a S-Corporation to a C-Corporation? - https://bit.ly/3Bt8aZp 💰3 S Corporation Tax Strategies Explained - https://bit.ly/3GKgDtD 🔥Owner Compensation Tax Strategy - https://bit.ly/3akZiLx *Disclaimer This material & presentation content is for informational and educational purposes only. This material and presentation content is designed to provide general information regarding the subject matter covered. It is not intended to serve as legal, tax, or other financial advice related to individual situations. Because each individual’s legal, tax, and financial situation is different, specific advice should be tailored to the particular circumstances. For this reason, you are advised to consult with your own attorney, accountant, tax preparer, and/or other advisor regarding your specific situation or your client’s specific situation. The information and all accompanying material are for your use and convenience only. TwvBjCWeelw |
| Category | Education |
| Tags | s corporation | s corp | llc vs s corp | self employment taxes | s-corp vs llc | s-corp vs c-corp | s corpoation tax | s corporation taxes | distribution tax | owner distribution tax | taxes | how to pay less in taxes | s corporation tax strategy | boris musheyev | s corp distribution taxes | what is an s corp | what is an s corporation | how do s corporation taxes work | how do s corp taxes work | how to s corps get taxes | how do s corporations get taxed | taxes for s corporations |
