Discussion:Reclassification to Constructive Dividends
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| Revision as of 14:58, 24 May 2006 Frank stewart (Talk | contribs) (New Discussion) ← Previous diff |
Revision as of 15:26, 24 May 2006 Foxttron (Talk | contribs) (To whom the shar) Next diff → |
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| {{ForumNewPost|UserID=Frank stewart|Date=24 May 2006|Text=What can be done to reverse the IRS reclassification to dividends. My client (a corporation) invested $40,000 in another corporation (that he is a 50% shareholder). The IRS reclassified the $40k as a constructive dividend to my client personally.}} | {{ForumNewPost|UserID=Frank stewart|Date=24 May 2006|Text=What can be done to reverse the IRS reclassification to dividends. My client (a corporation) invested $40,000 in another corporation (that he is a 50% shareholder). The IRS reclassified the $40k as a constructive dividend to my client personally.}} | ||
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| + | {{ForumReplyPost|UserID=Foxttron|Date=24 May 2006|Text=To whom the shares where issued? If the corporation has legal title to the shares, that is not a dividend, not an investment in sub (see the consolidation rules about control.) However, if the shares (of the second corporation)are in the name of the shareholder, the IRS is correct.}} | ||
Revision as of 15:26, 24 May 2006
Discussion Forum Index --> Tax Questions --> Reclassification to Constructive Dividends
Frank stewart (talk|edits) said: | 24 May 2006 |
| What can be done to reverse the IRS reclassification to dividends. My client (a corporation) invested $40,000 in another corporation (that he is a 50% shareholder). The IRS reclassified the $40k as a constructive dividend to my client personally. | |
| 24 May 2006 | |
| To whom the shares where issued? If the corporation has legal title to the shares, that is not a dividend, not an investment in sub (see the consolidation rules about control.) However, if the shares (of the second corporation)are in the name of the shareholder, the IRS is correct. | |
