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U.S. Wealth Distribution
The ultra wealthy in the United States is growing. The rest of us, not so much.
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Engagement Letters
The engagement letter format has changed.
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BREAKING DOWN 'Corporate Tax'
U.S. corporate tax returns are typically due March 15. Corporations may request a six-month extension to have corporate tax returns due in September. Installment payment due dates for estimate tax returns occur in the middle of April, June, September and December. Corporate taxes are reported using Form 1120 for U.S. corporations. If the corporation has more than $10 million in assets, it is required to file online.
FEDERAL CORPORATE TAX RATE
The federal corporate tax rate in the United States is currently 21 percent. This was put into law under the Tax Cuts and Jobs Act (TCJA) under President Donald Trump and went into effect as of 2018. This consolidated corporate tax brackets with a maximum rate of 35 percent. Any other corporate taxes are levied at the state and local levels.
CORPORATE TAX DEDUCTIONS
Corporations are permitted to reduce taxable income by certain necessary and ordinary business expenditures. All current expenses required for the operation of the business are fully tax deductible. Investments and real estate purchased for the intent of generating income for the business are also deductible. A corporation can deduct employee salaries, health benefits, tuition reimbursement and bonuses. In addition, a corporation can reduce its taxable income by insurance premiums, travel expenses, bad debts, interest payments, sales taxes, fuel taxes and excise taxes. Tax preparation fees, legal services, bookkeeping and advertising costs are also used to reduce business income.
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