In general, a corporation must pay federal and state taxes in its own right, separate from the taxes that its shareholders, officers, directors, and employees pay. Unless a corporation elects to be taxed as a "flow-thru" entity, the corporation's income is taxed according to the corporate tax rates. The highest corporate rate currently in effect is 35%.

A Texas nonprofit corporation is not automatically exempt from federal or state taxes. To become exempt, it must meet certain requirements and apply with both the IRS and the Texas Comptroller of Public Accounts.

No. Because a reverse mortgage is technically a loan, it isn't considered income, nor is it subject to income tax.

Whether you are on the Queen Mary or a jet ski, if you were in U.S. waters, federal maritime law probably applies. As a general rule this law applies to any collision or other accident that occurs on "navigable waters of the United States," which includes all of the Great Lakes and all of the rivers that run into them.

LLC has the option to be taxed (a) directly as a corporation or (b) depending on the number of members, a partnership or a sole proprietorship. If it elects under state and federal law to be taxed as a corporation, then all its worldwide income is subject to taxation at the entity level, and any distributions to the members are taxable as dividends.

Married couples often leave all their assets to the surviving spouse. By doing so you do not use the available "applicable credit amount" of the first spouse to die. If the value of the assets that remain for the surviving spouse exceed his or her available "applicable credit amount," then there will be estate taxes to pay. For example, Joe and Mary own assets worth $1,100,000 in 2002. All assets are either in joint names or have the spouse as designated beneficiary, such as an IRA.

The FairTax is a single-rate, federal retail sales tax collected only once, at the final point of purchase of new goods and services for personal consumption. Used items are not taxed. Business-to-business purchases for the production of goods and services are not taxed. A rebate makes the effective rate progressive.

Since S corporation income is pass-through income, shareholders who have income from an S corporation with Minnesota source income would be required to file an individual Minnesota income tax return (Form M1), unless they elect to have the S corporation pay composite income tax on their behalf. Minnesota did not fully adopt the bonus depreciation provision of the “Job Creation and Worker Assistance Act of 2002” (IRC section 168[k]).

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the current year’s installment of any LIFO recapture tax (figured for the last year the corporation was a C corporation) over a four-year period.The S corporation is also subject to a minimum fee if the sum of its Minnesota source property, payroll and sales or receipts is at least $500,000. In some cases, the property, payroll and sales used for computing the minimum fee will be different from those used for apportionment.

a C corporation, federal and state taxes must be paid on the corporation's net income, unless the corporation if formed in a state without corporate taxation. S corporations pay no federal tax on net income since it passes through to the shareholders to report on their personal tax returns. In California, S corporations are subject to a tax of 1.5% on the taxable income that is passed through to the shareholders.

Up until the tax laws were changed in 2006, real property owned by a Panama corporation could be sold avoiding the capital gains by simply selling the corporate shares instead of the real estate itself. Since the corporation still owned the real property, real estate title didn't transfer to the buyer who merely bought the corporation and all of its assets. That loophole has been abolished. There is still another loophole available and we can discuss that with you in person.

No. A corporation, LLC, or partnership does not satisfy the deferment requirements of the General Property Tax Act (MCL 211.51) with respect to homestead property (i.e., an owner must also be a totally and permanently disabled, blind, paraplegic, quadriplegic, an eligible serviceperson, eligible veteran, or eligible widow or widower, or who is at least 62 years of age), nor the household gross income requirement of $40,000 or less.