11-29-2017, 02:46 PM
(11-29-2017, 02:05 PM)Belsnickel Wrote: S and C corporations both utilize the same corporate tax rates. There are only the individual and corporate rates, and whether you use the corporate rates depends on whether you operate as a pass-through (which, as you know, some S-corps do). So I don't know how feasible it would be to lower corporate rates for one classification and not the other, especially given that those behemoths will want in on the action.
I thought all S-corps were pass-thru? Unless they converted from a C-corp, then there's some recapture and tax on passive income. There are a lot of reasons why the publicly traded C-corps wouldn't convert.
As I understand it, this tax plan somehow treats income from S-corps differently, capping it at 25% (or is it 20%?) whereas before it would be potentially hit a higher marginal bracket. What I'm not understanding is if the C-corp rate is changing.
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