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Can a C Corp put aside a capital reserve fund which is non

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Can a C Corp put aside a capital reserve fund which is non taxable?

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Unfortunately, it cannot. This is reserved for tax exempt entities such as charities. A C Corporation must pay taxes on its income. Thus, any amount set aside as a reserve will need to be derived from income (taxed) or borrowings (not taxed although the money to repay the loan will need to come from taxable earnings) and any income earned within the fund will be taxed as well.

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