S Corporation Tax Implications During the Operation Phase
An S corporation can provide business owners with valuable tax and operational flexibility, but S corporation taxation is often misunderstood. The most common misconception is that owners are taxed only on the cash they withdraw. Generally, that is not how S corporations work. An S corporation typically passes taxable income, deductions, gains, losses, credits, and […]
S Corporation Contribution Tax Implications
Shareholders frequently transfer money or property to an S corporation to start a company, fund expansion, purchase equipment, cover operating expenses, or strengthen working capital. Although these transactions may appear simple from a bookkeeping perspective, their federal tax treatment can have long-term consequences. The transfer may affect shareholder stock basis, debt basis, deductible S corporation […]