Gopher Corporation began the year with a large amount of accumulated earnings and profits and ended the year reporting taxable income of $100,000. Gopher wants to distribute its after-tax earnings to its sole shareholder, Sven Anderson. The dividend would meet the requirements to be a qualified dividend, and Sven is subject to a tax rate of 15 percent on dividend income. What is the amount of the dividend distribution and how much income does Sven realize after taxes? Answer is not complete. Corporate income Corporate tax Dividend distribution to Seven Shareholder tax Total after tax income $100,000 $105,000 x $ 15,000 x

Max is planning to invest in preferred shares of a friend's Canadian - controlled private corporation, which are paying a $19,000 dividend per year from income taxable at the low corporate rate. Assuming that Max is in the top federal tax bracket (33%) and that the provincial tax on income rate in his province is 15%, how much income tax will Max pay on this income? Also assume that the combined federal and provincial dividend tax credit is equal to the dividend gross - up.

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Godo

Andrea would like to organize SHO as either an LLC (taxed as a sole proprietorship) or a C corporation. In either form, the entity is expected to generate an 11% annual before-tax return on a $200,000 investment. Andrea’s marginal income tax rate is 35% and her tax rate on dividends and capital gains is 15%. Andrea will also pay a 3.8% net investment income tax on dividends and capital gains she recognizes. If Andrea organized SHO as an LLC, Andrea will be required to pay an additional 2.9% for self-employment tax and an additional 0.9% for the additional Medicare tax. Further, she is eligible to claim the full deduction for qualified business income. Assume that SHO will pay out all of its after-tax earnings every year as a dividend if it is formed as a C corporation.a. How much cash after taxes would Andrea receive from her investment in the first year if SHO is organized as either an LLC or a C corporation?b. What is the overall tax rate on SHO’s income in the first year if…

Lawyer is in the highest federal tax bracket in the current year. What is Lawyer’s net capital gain and how is it taxed if Lawyer has a $5,000 gain from a collectible, a $5,000 unrecaptured IRC Sec 1250 gain, a $5,000 gain from stock, and a $10,000 loss from stock, all held long term.

Leona, whose marginal tax rate on ordinary income is 37 percent, owns 100 percent of the stock of Henley Corporation. This year, Henley generates $1 million of taxable income. If Henley wants to pay all of its after-tax earnings to Leona as a dividend, calculate the amount of the dividend payment. Calculate Leona’s tax due on the dividend computed in part a, and her after-tax cash flow from the dividend receipt. Compute the combined corporate and individual tax burden on Henley’s $1 million of current year income, and the effective combined tax rate on this income.

This year, the shareholders in Sunflower Company can choose between receiving an additional 1,000 shares of stock or cash of $1000. Sunflower's shareholders will be taxed on the distribution if Sunflower has sufficient E&P. True Or False

Sagar

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