Tax Guru – Ker$tetter Letter

Helping real people win the tax game.

Smoothing income…

Posted by taxguru on March 18, 2009

Q:

Subject:  s versus c article

I read your article with some interest and have a question about your tax splitting.

Lets say the C-corp does a split and takes $50k in a 15% bracket. Now what? A C-corp doesn’t have to buy food or put a kid through college. Why is it helpful for the C-corp to have 50k in the bank, especially if you are an individual with small company and just want all your money in your pocket so you can buy cocaine?

 

A:

The effective use of C corps to shift and smooth out income is a multi-year process; so looking at one year’s end result isn’t the best way to evaluate it. Any experienced professional tax advisor should be able to assist you with implementing these tactics in the best way for your particular goals and situations.

So, in addition to your particular financial priorities, be sure to budget enough money to pay for the services of a good professional tax advisor.

Good luck.

Kerry Kerstetter

 

 

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