How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask CGCPA Your Own Question
CGCPA
CGCPA, CPA
Category: Tax
Satisfied Customers: 3820
Experience:  over 40 years experience in tax matters
50756543
Type Your Tax Question Here...
CGCPA is online now
A new question is answered every 9 seconds

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

This answer was rated:

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

Welcome to Just Answer. I am here to help you resolve your tax and finance concerns. Please feel free to ask anytime you need extra help.

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.

CGCPA and other Tax Specialists are ready to help you

Related Tax Questions