Question 1. Is there any advantage to having a C Corporation instead of an S Corporation? The S Corp. appears to have the tax advantage on its side.
Question 2. Why aren't life insurance proceeds taxable? Second, if tax-exempt income is not reportable on a tax return, can a taxpayer claim deductions against that income on the return?
Question 3. Normally, S corporations, and somewhat so in C corporations, avoid making distributions to shareholders that could be taxed as capital gains. (Taxation has become a word to avoid at all costs!) Should corporations that may be doing well in the cash department consider paying out dividends in 2009?
Question 4. If the situation in a particular year is that a business had a net profit, and the shareholders decided to distribute all of that income right down to 0, would any of the distribution be taxable to the shareholder?
Question 5. Why would depreciation be recorded on the books but not on the tax return?