How does a S corporation evade double taxation on capital gains compared to a general corporation?
Homework Answers
In case of S corporations the total income earned by corporation is passed though members of the company.
S corporation itself does not pay any taxes as it transfers all its income to its members.
The members show the income from s corporation in their individual tax returns and this is how tax is charged only once which avoids double taxation.
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How
does a S corporation evade double taxation on capital gains
compared to a general corporation?
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