Taxable vs nontaxable income for a C Corporation?
For a C Corporation, income would primarily relate to any income received in the normal course of business. So, if the C Corporation sold electric vehicles, then proceeds from the sale of electric vehicles would be the primary source of income for the company on the tax return. Taxable income would also include any royalty income, rental income, or interest income that is received in advance.
You might also be interested in...
What does the slang term “suicide pill” mean in finance?
If a company is on the verge of being acquired by another company, and they don’t want to be acquired, then they might take a suicide pill. There is no concrete way to commit financial suicide. Basically, any extreme action by the company to prevent being acquired would be considered financial suicide. Examples include taking […]
What is the personal holding company tax?
Personal holding companies that are required to pay personal holding tax will be subject to an additional 20% tax on personal holding income. Personal holding corporations will be subject to a penalty tax if they meet certain criteria: Criteria #1: Over 50% of the value of the outstanding stock should be owned by five or […]
How to calculate the accumulated earnings tax for corporations?
The accumulated earnings tax is a 20% tax that will be applied to C corporation’s taxable income. The accumulated earnings tax is considered a penalty tax to those C corporations that have accumulated over $250,000 in earnings ($150,000 for PSC corporations) and if that excess amount has not been distributed to shareholders in the form […]