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Business, 05.08.2021 01:00, libertycooper
James is the sole shareholder of Peachy, Inc., a C Corporation. At the end of the current tax year, James has a basis of $20,000 in his stock of Peachy. Peachy, Inc. has $30,000 of current and accumulated earnings and profits remaining at the end of the year. Instead of having Peachy, Inc. pay himself a dividend, he instead has Peachy, Inc. pay his daughter's upcoming college tuition bill of $30,000. Peachy, Inc. deducts the $30,000 as an ordinary and necessary business expense. The tax result of this will likely be:
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James is the sole shareholder of Peachy, Inc., a C Corporation. At the end of the current tax year,...
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