Wednesday, June 27, 2018

How to account for money in corporate account

11:26 AM



Question:

I just signed up for the account and I am playing around with the numbers. I am currently keeping most of my earnings inside my corporation and investing inside the corporation.

Is there a way to measure the growth inside the corporation and the best way to divest in the future or is there an approximate account of how much extra tax I will be paying on withdrawing the money from the corporation so that I can properly account for it?

Answer:

You can enter the value of your corporation in 'Business Ownership' in Other Assets on the Finances page. You can pay dividends from the business and you'll find an entry for dividend income from business ownership on the 'Other Income' tab. The two are associated, so if you sell the business, the dividends will stop in that year.

On the sale of the business ownership, the amount above the small business capital gains exemption will be taxed.

0 comments:

Post a Comment

 

© 2018 Risk Blog by Equisoft Inc. All rights reserved. Designed by Templateism

Back To Top