Where Form 1120 C Rental 2023-2024

Hi, Lee Phillips here. I'm going to talk about the new tax laws initiated by President Trump, known as the Tax Cuts and Jobs Act, which came into effect on January 1st, 2018. Before the Trump Act, corporate taxes in the United States were among the highest in the world. However, now they have been simplified to a flat rate of 21%. This means that regardless of the income generated, corporations only need to pay 21% as tax. This rate is actually lower than the personal tax rate in many cases. Now the question arises, would it be advantageous to have a C-corporation under the current tax laws? A C-corporation can be taxed under Chapter C of the IRS code, just like any other corporation. Previously, the answer to this question was a resounding "no" or "hell no". The reason being that the only way to extract money from a C-corporation was either through salaries, which were subject to Social Security and other taxes, or through dividends, which led to double taxation as the corporation paid taxes on the dividend as well, and the recipient had to include it as personal income and pay taxes on it. So, it was clear that C-corporations were not favorable due to these tax implications. However, with the new tax laws, things have changed. C-corporations can now store money and have it taxed at the flat rate of 21%. This could be advantageous if you have a specific project or plan and want to save money for it. However, it's crucial to be cautious because the IRS can still impose an excess earnings tax if you accumulate excessive earnings in your C-corporation. In general, my answer is still inclined towards not opting for taxation under Chapter C of the IRS code, especially if you are in real...