Discussion:CA s-corp minimum tax exemption
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Discussion Forum Index --> Tax Questions --> CA s-corp minimum tax exemption
| 12 April 2008 | |
| I need some help with this one. I have a client the incorporated on December 26,2006. There was no activity for the last few days of the year, so no return was filed for 2006. 2007 is the inital return. I remember seeing somewhere that you would not need to count the year that it was incorporated as the first year for the minimum tax exemption if the incorporation was completed toward the very end of the year. Does anyone remember seeing this somewhere? | |
| 12 April 2008 | |
| A corporation that has no California activity during an initial period of less than 15 days is not subject to tax for that period. Cal. Rev & Tax. Code Sec 23114.
A corporation organized on or after January 1, 2000 is not subject to the fixed dollar minimum tax for its first taxable year. CRTC Sec. 23153(f)(1). So the first year for which this corporation would be subject to the $800 minimum tax would be 2008. The first estimated tax payment (due April 15) must be not less than $800 to avoid an underpayment penalty. Katie in San Diego | |
| 12 April 2008 | |
| THANK YOU KATIE!!
I knew I was right about this, but didn't remember where I read it! Say hello to San Diego for me. I grew up there and miss it very much! | |
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