0
What best describes how corporations are taxed on dividend income?
Wiki User
∙ 13y agoWant this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
How you compare unpaid income tax with income tax expense?
If I understand what you are asking, your question is in regards to C corporations or LLCs which have elected to be taxed as C corporations, and which use the accrual method of accounting. The income tax expense for the period would be listed as an expense on the income statement. The amount of unpaid income tax would be listed as a liability on the balance sheet as income tax payable (or some similar name).
What is the earning threshold for a child to pay taxes?
The child's income is essentially considered the income of the parent...so it is taxed at their rate, and presumably they have enough income to be taxed.
How are cash dividends taxed?
Dividends, cash or otherwise, are taxed as ordinary income.
Which form of business is taxed twice?
C Corporations are taxed twice. Once on the Corporate earnings and then as dividends to the shareholders. What a rip off, eh.....
Is net or gross income taxed?
gross
When a corporation receives a dividend from another corporation how is it taxed?
Dividends are income to the receiving corporation. If it is a sub-chapter S corporation, it is income to the shareholders, as is any other income of the corporation.
Are fixed income annuities taxed?
Yes, the income you receive will be taxed as ordinary income.
On what basis are mutual funds taxed?
shareholders are taxed on the distribution of fund's income. For tax purpose, mutual funds distribute their net income to the shareholders in two ways: (1) dividend and interest payments and (2) realized capital gains.
What is the advantage of corporations?
S corporations' major benefit is that they are taxed like partnerships.
What is the major advantage of S corporations?
The net income of an S-Corporation are taxed to the end of the S-Corporation's fiscal year as part of the income taxes that are paid during the shareholders tax year in which the S-Corporation completes its fiscal year. This provides a benefit of avoiding the corporation "double-tax". That is, with other types of corporations, the corporation pays the taxes directly. Then, when you sell your stock in the company the increased value of the stock is taxed again. When you sell an S-Corporation stock, you are not taxed on the gain as a stockholder because the tax was already paid when the corporation reported income. The corporate tax rate is also usually higher than the highest individual tax rates. If the tax is paid through an individuals income tax, the overall tax paid as a percentage of the corporations income is lower than it would be under other types of corporations. An S-Corporation also has an added benefit when it takes a loss for the fiscal year. With other types of corporations, usually a loss results in zero tax. With an S-Corporation, the loss is passed to the shareholders who can deduct the loss from their income for individual income tax purposes, resulting in a lower tax for the individual.
What is the major advantages of corporations?
S corporations' major benefit is that they are taxed like partnerships.
How you compare unpaid income tax with income tax expense?
If I understand what you are asking, your question is in regards to C corporations or LLCs which have elected to be taxed as C corporations, and which use the accrual method of accounting. The income tax expense for the period would be listed as an expense on the income statement. The amount of unpaid income tax would be listed as a liability on the balance sheet as income tax payable (or some similar name).
Do you get taxed on money saved?
Not taxed again on the after income tax money that you have saved but you are taxed on the earnings from the after income tax saved money.
How much of a business's income is taxed?
The amount that a business's income is taxed depends on which of the eight tax brackets they are in which are based on overall profit. They can be taxed from 15% to 35%.
What happens to the percentage of an income that is taxed when income rises and the tax is a proportional one?
The percentage of an income that is taxed will stay the same when income rises until that income reaches a certain point set by the government. A higher tax bracket may mean a higher portion of the income will be taxed.
Stocks and bonds providing income through dividends and interest is the same as money use as which of these?
USED as a part of all of your gross worldwide income that you will report on your 1040 federal income tax return. You would have some dividend income and some interest income to be reported on the tax form. Generally, dividends are taxed differently (more beneficially) than interest. Interest is ordinary income at your normal rate, which depends on your circumstances. Whereas dividends are taxed like long term capital gains rates with the max being 15%.
What is the earning threshold for a child to pay taxes?
The child's income is essentially considered the income of the parent...so it is taxed at their rate, and presumably they have enough income to be taxed.
