Discussion:Test Discussion

Sec. 123 Reg. 1.123-1 Publication 17 12345

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1  2    3
4  5    6
7  8    9

Done.

1. 1.
2. 2.

• Two
• Three

1. one#two

1. one
2. two

• 1. Two

1. two

1. tree

1. two
2. three

one two tree

1. two
2. tree
3. four

1. two
2. tree
3. four

"#"one

1. two
2. tree
3. four

1. one
2. two
3. tree

1. 2

1. quetions 1
2. quetions 2

• two

• pay attention to..
• don't forget....

second sentence here

new sentence here

EM

sentence two bolded sentence tree underline sentence four italized

one space and this this

Two spaces

one
two
tree

1. one
2. two

• one
• two

1. 1#2
2. 3#4

1. 1 #2 #3 #4

1. 1 #2
2. 3 #4

1. the
2. most
3. famous
4. person

first

second

third

• Test line two

1. 1 Test line
2. 2 Test Line 2

• Test line two

Scenario 1 - Bonus Thru the Corp

• Corp saves 25% x $10,000 = $2500 (Employer deducts $10k for comp expense)
• Corp saves 25% x 765 = $191 (Employer deducts 7.65% ER portion of payroll taxes)
• Shareholder/EE pays 28% x $10,000 = <$2800> (personal income tax)
• Shareholder/EE pays 5.65% x 10,000= <$565> (EE FICA taxes withheld)

NET ADDITIONAL TAX TO SHAREHOLDER IS $674

Scenario 2 - Dividend

• No Effect on Corp
• Shareholder pays 15% x $10,000 = <$1500>

NET ADDITIONAL TAX TO SHAREHOLDER IS $1500

So, as you can see, it is better to bonus it as comp rather than paying dividend because it results in a smaller additional tax owed when viewing the two entities as one.

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