Quote:
Originally Posted by Sly
It's not money that could be spent on an office building! Its personal income! It is money that he earned as a salary, or whatever other method, it's not business gross. Even if it was business income, he could spend that $300,000 and then would be paying taxes on the $700,000 which would be quite a bit less.
This is personal income that would be spent on houses, vehicles, vacations, investing in the stock market, cosmetic surgery LOL, stuff like that.
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uh, no. actually Sly, if an LLC or S corp carries unspent money over the jan 1 time line, its taxed as if it were income. to keep it simple, if the company has profits of say 10 million dollars and they'd like to leave it in the bank for a rainy day or for expansion projects in the following year, that $10mil turns into $7mil after taxes. no way around it. If you have an $8mil need in the following year, fuck you. you're out of luck even though you originally had $10mil
thats very simplistic yet accurate.