
Originally Posted by
Melonie
^^^ your federal personal tax rates do NOT include the 15.3% self-employment tax that would also apply. Thus 30.6k of personal income would be taxed at 25% federal income + 15.3% self-employment or 40% ... without considering state and local income taxes. C corp dividends are NOT subject to self-employment tax or employee SSI tax !
On 100k of gross receipts, it is possible to 'split' those receipts into corporate earnings plus personal earnings, with a lower progressive tax rate applying to both 'fractions' than to a single 'total' as would be the case for S corp or LLC or sole proprietor.
Re AMT, the largest single tax deduction subject to AMT limitation is home mortgage interest ... which is a PERSONAL deduction not a corporate one. The second largest is state and local taxes paid, which are also primarily PERSONAL not corporate
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