11-29-2017, 06:32 PM
(11-29-2017, 06:09 PM)JustWinBaby Wrote: Yes, S-Corps can CHOOSE to file as a C-Corp if it's cheaper. But we're not talking about different rates. There is no "S-Corp" rate, you either pass-thru or file as a C-Corp. Although there's nominal state taxes on S-Corps, which is probably different from C-Corps. I guess if you want to get technical, they've created a new taxable entity (or however you want to call it) that is taxed neither purely as an individual nor a corporation (a special one, albeit far the most common, at that).
Sounds like the deduction is a real mess. Don't believe they've defined the tests to qualify for the special treatment or how much gets the favorable rate vs. ordinary income on "wages", but I'm guessing the accountants and lawyer are going to figure out how to get it.
You're correct they're lowering the corporate rate to 20%.
I wasn't saying they had separate rates, though I thought you did at one point. Either way, sounds like we're both on the same page.
