When can a PSC deduct payments made to owner-employees?
The general rule is that personal service corporations (PSC’s) will be able to deduct owner-employee payments made in the same year that it is includible in their gross income for individual tax purposes.
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What is a personal service company (PSC)?
Personal service corporations will perform services in the fields of health, law, engineering, accounting, consulting, architecture etc. The applicable tax rate for qualified PSC companies will be the same as regular C corporation (21%). Personal service corporations are unable to deduct passive losses against active portfolio income. Personal service corporations will be relevant to your...
What is a personal service company (PSC)?
Personal service corporations will perform services in the fields of health, law, engineering, accounting, consulting, architecture etc. The applicable tax rate for qualified PSC companies will be the same as regular C corporation (21%). Personal service corporations are unable to deduct passive losses against active portfolio income. Personal service corporations will be relevant to your...
