Question
Why do direct loans matter for S corporation basis?
Tap to flip
Answer
Only direct loans create debt basis for loss deductions.
Tap to flip back
Question
Why are fringe benefits attractive in C corporation planning?
Tap to flip
Answer
They are often deductible to the corporation and tax-free to employees.
Tap to flip back
Question
How does debt financing reduce C corporation double taxation?
Tap to flip
Answer
Interest is deductible, unlike dividends.
Tap to flip back
Question
Why can retaining C corporation earnings be beneficial, and what is the main trap?
Tap to flip
Answer
It defers shareholder dividend tax, but may trigger accumulated earnings tax.
Tap to flip back