TAX 4001 Lecture Notes - Lecture 9: Adjusted Gross Income, Internal Revenue Code, Qualified Dividend
Document Summary
We need to know how they are formed, what the features are, what are the tax consequences because of those features, and as a tax consultant what might we want to let them know. There is never a requirement that you have to form a particular type of entity. Many non tax reasons why you might choose another entity. History of the entity is a big reason to keep entity. Tax features pass through from entity to owner. Corporations are governed by subchapter c or subchapter s of the internal revenue code. Generally do not pay federal income tax. Similar to partnerships in that ordinary business income (loss) flows through to the shareholders to be reported on their separate returns. Do not aggregate all income and expense items in computing ordinary business income (loss) C corporations are subject to an entity level federal income tax.
