RGD Corporation was a C corporation from its inception in 2017 through 2022. However, it elected S corporation status effective January 1, 2023. RGD had $59,000 of earnings and profits at the end of 2022. RGD reported the following information for its 2023 tax year. Description Consulting revenue Salary to owners Employee wages Depreciation expense Municipal bond interest Interest income Dividend income Amount $ 108,000 (31,000) (34,500) (9,500) 15,000 51,000 34,000 $ 133,000 Overall net income What amount of excess net passive income tax is RGD liable for in 2023?

RGD Corporation was a C corporation from its inception in 2017 through 2022. However, it elected S corporation status effective January 1, 2023. RGD had $59,000 of earnings and profits at the end of 2022. RGD reported the following information for its 2023 tax year. Description Consulting revenue Salary to owners Employee wages Depreciation expense Municipal bond interest Interest income Dividend income Amount $ 108,000 (31,000) (34,500) (9,500) 15,000 51,000 34,000 $ 133,000 Overall net income What amount of excess net passive income tax is RGD liable for in 2023?

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter17: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 45P

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