Discussion:Reduce A.E.T. Requirements

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Discussion Forum Index --> Tax Questions --> Reduce A.E.T. Requirements

Dude7707 (talk|edits) said:

25 July 2006

Retail/Wholesale Paint store - C Corp with $988,474 in Unappropriated R.E. as of 12/31/05 needs to be specfic in setting up Appropriated R.E so PART of the Schedule of Estimating Future Expansion, Replacement, & Acquisition Costs to be attached to 1120 for 2005 to show this allocation which has not been filed yet.

RE: New Store Location:

Q1. Do you include operating expenses also beside capital investments? Ex. Rent, Labor, ect.

Q2. Or do you just include F,F,& E, Deposits, and Leasehold Improvements?

I know ONE option to eliminate this potential tax is to change to S-Corp however TP 100% S/H does not want to pay more taxes AT THIS TIME, but leaving it the way it is will surely be a larger potential tax bill!

TP currently recieves a $50k wage and for 2004 C-Corp Taxable Income was $54,929.

Has anyone had the IRS assess this tax on any of their clients?

Q3: Or would you RECOMMEND DOING NOTHING?

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