Question
Why is reasonable compensation a key C corporation tax-planning tool?
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Answer
It shifts income to a deductible salary instead of a dividend.
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Question
Why must pass-through distributions be timed to basis?
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Answer
Cash distributions over basis can trigger gain.
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Question
Why are fringe benefits attractive in C corporation planning?
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Answer
They are often deductible to the corporation and tax-free to employees.
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Question
What is the main trade-off in S corporation wage planning and QBI optimization?
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Answer
Lower wages reduce payroll tax but can reduce the QBI deduction.
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