Sentences with phrase «to avoid double taxation»

The reason for these credits initially was to avoid double taxation on earnings that corporations already paid tax on.

With the S corporation there's a tax advantage, since income and losses pass directly through to the owners and thus avoid the double taxation of C corporations.

Your Canadian tax already paid is eligible as a foreign tax credit on filing to help avoid double taxation.

A partnership is less complicated to set up than a corporation, and this form of business avoids the double taxation to which the higher - taxed corporations are subject.

The reason for these credits initially was to avoid double taxation on earnings that corporations already paid tax on.

In other words, this allows an LLC's owners to avoid the double taxation issue because the LLC's profits pass directly to the owners» tax returns.

By contrast, LLC member - owners avoid this double taxation because the business's tax liabilities are passed through to them; the LLC itself does not pay a tax on its income.

An S - Corporation has some benefits including avoiding double taxation.

And the flow - through entity status, by avoiding double taxation, leads to more capital being available for future projects, which makes the MLP firm more competitive in its industry.

In avoiding the double taxation, any dividend ADR investor should claim a foreign - tax credit on their federal tax return.

The way to avoid the double taxation problem is to make a «Subchapter - S election» for your corporation.

So should I reduce Rs. 90000 / -(9x 10000 / - premium per year) from the received surrender value, to avoid double taxation??

If you are a single proprietor or have partners in an LLC, you get the benefit of pass - through taxation, which avoids the double taxation you would be subject to if you had another type of corporation, like a C corporation.

In addition, U.S. companies can now focus on their underlying businesses with significantly fewer tax - driven business decisions like so - called inversions or inefficiently keeping cash abroad to avoid double taxation on overseas profits.

However there is an interesting specialty with regard to dividends in Australia: They want to avoid double taxation of corporate profits and therefore every Australian holder of Australian stocks receives so called «Franking credits» when an Australian company pays dividends.

Despite many potential small business tax deductions with C corps, many for - profit businesses (which are C corps by default when they incorporate) convert to S corps to avoid the double taxation issue.

To avoid double taxation, corporations sometimes pay their shareholder - employees higher salaries instead of distributing income as dividends.

Historically, treaties are signed with countries that have a similar tax system to ours and are meant to avoid double taxation.

Depending on how the company is established and how many employees / investors there will be, a small business startup often creates an LLC because this helps it avoid double taxation and can still support multiple classes of stock if needed.

Although you still owe, there are some foreign earned income exclusion limits to avoid double taxation.

In most situations, the LLC's business profits flow through to the individual members, allowing it to avoid the double taxation of paying corporate tax and individual tax.

Because of that election, S Corps are not taxed as corporations but as partnerships to avoid double taxation.

Cyprus, one of the eurozone's smallest economies, modelled itself as a competitively - taxed financial services centre with a network of treaties to avoid double taxation.

O'Brien recommends that clients hold an S corporation status to avoid double taxation and facilitate a beneficial stock sale (versus a less - desirable asset sale).

This way you can legally minimize / avoid double taxation.

To avoid double taxation, you will generally be allowed to claim a foreign tax credit on your Canadian return for any tax you pay to the United States.

However, the way you avoid double taxation on capital gains, if you owe it, is with the Foreign Tax Credit.

Can one conclude that it is best to purchase lottery tickets in the state in which you live, to avoid double taxation?

This avoids double taxation.

In order to avoid double taxation, some companies (for example, Berkshire Hathaway) choose not to pay a dividend.

Similarly, a taxpayer who receives foreign income is entitled to a foreign tax credit to take into consideration foreign taxes paid and to avoid double taxation.

(This is to avoid double taxation, one by the ADR's country of origin and one by United States) For tax - deferred...

It is to avoid double taxation, not FICA.

S - Corp is useful mainly for those who want the limited liability and can not work under LLC (lawyers, doctors, accountants, etc), or those who want corporate structure and pass - through taxation (avoiding double taxation).

There is a bilateral agreement between Canada and the U.S. to avoid double taxation and because Canadian tax rates are generally higher than U.S. rates, many Canadian tax filers have no U.S. tax liability on their U.S. returns.

Since Croatia is not in agreement with US to avoid double taxation, what is our best option?

As I understand it, the Form 1116 Foreign Tax Credit is intended to allow you to avoid double taxation on foreign income.

If some of these countries have treaties with Australia - you can use the treaties to avoid double taxation, but if these countries don't have tax treaties with Australia - you'll end up paying taxes twice on the same money.

When adding ADRs to your portfolio be careful to avoid double taxation.

CRA allows you to claim a foreign tax credit for foreign tax paid in order to avoid double taxation of the income.

The opportunity to avoid double taxation, at the corporate and individual level for other companies, is a huge advantage and many oil & gas conglomerates spin off their infrastructure assets and pay a transaction fee to the partnership for pipeline or storage needs.

So the IRS treats shareholders of an MLP as partners, making the MLP itself a pass - through entity and allowing investors to avoid double taxation of earnings [see Everything Dividend Investors Need to Know About MLPs].

Provisions exist to avoid double taxation and to estimate the carbon content of electricity from unspecified / unknown generation sources, and electricity sold by the Bonneville Power Administration (BPA).

To avoid double taxation, owners of C - corporations pay out its entire corporate profit to its owners as a salary.

It is reported that in order to avoid double taxation, it distributed all of its earnings at years end.

This allows S corporations to avoid double taxation on the corporate income.

Since there is no separate LLC tax, the owner can avoid double taxation on both the rental income generated by the property and the appreciation in value of the property upon disposition.