Pass-Through Entities

Corporate Income Tax - Week 7 Lecture

This week we will focus on the advantages of conducting a business as a pass-through entity. We will also analyze how planning strategies after tax cash flow available to business owners. The tax characteristics of one form may be advantageous in one case, and disadvantageous in another. Business owners will need to re-evaluate the form in which they conduct their business every time congress amends the internal revenue code. We will work on calculating after-tax cash flow from pass-through entities and taxable corporations and illustrate how families can use partnerships or S corporations to shift income. In addition, the concept of constructive dividends will be analyzed and why individuals can use corporations as tax shelters. Moreover, we will explain the purpose of the accumulated earnings tax and the personal holding company tax. Finally, we will also dive into jurisdictional tax issues in business taxation such as computing the foreign tax credit, and comparing the tax consequences of a foreign branch and a foreign subsidiary. This week your lecture will revolve around corporate tax shelters, please reference the following YouTube Video. To make the YouTube video larger, click on the [ ] in the lower right corner.
Tax Havens and U.S. Corporations