Video: Real Property Taxes

This Season: Tailgating; New Year, New You; Tax Time

Curious about property taxes? Learn about real property tax in this free video clip about business tax deductions.

Comments

Video Transcript

We were talking earlier about whether I should incorporate and I mentioned sub-chapter S corporations and I'm going to go into that a little more in this segment. I'm Tom Choisnet, enrolled agent. Regarding the sub-chapter S election, what that does is take the profit or loss of your company and flow it through to you as an individual. It's a means where by you can take a salary for your operation and have those extra profits returned to you in the form of dividends so that you don't have to pay self-employment tax on that. So, if you put your salary at a realistic level, it can help shelter some tax in that matter. What's important is that when the corporation is formed, the sub-chapter election should probably me made at that time. If you change to that organization later on, you must do it within seventy-five days of the beginning of the fiscal year or the calendar year of the corporation, that's March 15th for Calendar Corporation. The sub-chapter S corporations are very effective in the early years of a business where operating losses are commonplace, that way they flow through to you and you can shelter other income. Hope that gave you a little insight as to how to use your sub-chapter S election. Thank you!

Follow eHow: Follow @eHow

Real Property Taxes

Comments

Related Ads

Related Articles & Videos