Search Help

Enter one of more keywords to search. Use quotes for “exact phrase.” Note that '*' and '?' wildcards are supported.

When your search results appear, you can refine your search further: Sort for only results in which all search terms appear AND/OR sort by chronological order.

Article Date:
May 2014

Word Count:



Use Corporate Advances to Escape Double Taxation

C corporation owners have a double-taxation problem.


Suppose your C corporation has $10,000 of profits after paying your salary and other expenses. To move that money to your pocket for your personal use, you have to



pay the corporate tax on the income, and


pay a dividend tax on the transfer from the corporation to your personal bank account.


That’s double taxation, and it’s not a great solution. But there is a good alternative: by taking a loan, you can avoid the tax on dividends.


If you borrow the $10,000 instead of taking a distribution, you can repay the money at a tax cost of about $9.81 a year. Compare that to ... Log in to view full article.

Already a subscriber?
Email Address

You’ll be able to read the full article and get instant access to the last few issues of the Tax Reduction Letter
Not yet a subscriber?
with a money-back guarantee

Powered by Cranium Softworks - CMS, Subscription Mgmt & Web Development