Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax
This answer was rated:

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

taxable?...
Can a C Corp put aside a capital reserve fund which is non taxable?
Ask Your Own Tax Question
Answered in 5 minutes by:
1/2/2013
CGCPA
CGCPA, CPA
Category: Tax
Satisfied Customers: 3,820
Experience: over 40 years experience in tax matters
Verified

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
CGCPA, CPA
Category: Tax
Satisfied Customers: 3,820
Experience: over 40 years experience in tax matters
Verified
CGCPA and 87 other Tax Specialists are ready to help you
Ask your own question now
Ask CGCPA Your Own Question
CGCPA
CGCPA
CGCPA, CPA
Category: Tax
Satisfied Customers: 3,820
3,820 Satisfied Customers
Experience: over 40 years experience in tax matters

CGCPA is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,300 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,310 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

13,695 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,651 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
My new client, a minister, thinks he is exempt from SE but
My new client, a minister, thinks he is exempt from SE but can't remember executing a 4361. I have reviewed his IRS Account Transcripts for the past three years and can't find an indicator that he is … read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,217 satisfied customers
I would like to start a non profit (tax exempt). I am
I would like to start a non profit (tax exempt). I am located in Idaho. The main reason for the non profit will be to help people in need, like the poor and needy with humanitarian services and produc… read more
taxmanrog
taxmanrog
Master\u0027s Degree
698 satisfied customers
How can I resolve an issue re4lated to tax exempt status. I
How can I resolve an issue re4lated to tax exempt status … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
Do I get a church tax exemption certificate? How do I get a
How do I get a tax exemption certificate forMount Horeb Baptist Church at*****Gary In 46402? … read more
abci168
abci168
Principal
27 satisfied customers
TAX RETURN: Health coverage exemptions I moved from Europe
TAX RETURN: Health coverage exemptions I moved from Europe to the US in mid-2015 and applied for a green card in oct based on marriage to a US citizen (which was granted to me in spring 2016). We are … read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,466 satisfied customers
My nonprofit lost its tax exemption status, I did not submit
Hi! My nonprofit lost its tax exemption status, I did not submit 990 form for 3 years. The org was not doing well as a nonprofit and I would like to change the business to for profit with the same mis… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
When a tax exempt charity organization runs a entertainment
when a tax exempt charity organization runs a entertainment event hiring a production company do they need to charge admission sales tax? even if the proceeds(profit if there is goes to the charity or… read more
taxmanrog
taxmanrog
Master\u0027s Degree
698 satisfied customers
Real estate tax exemption removal back taxed. Property was
Real estate tax exemption removal back taxed. Property was owned by church in small town. Now private owned residential. Back tax assessed is more than current year tax!… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
How do I report this? 1099 INT – Line 8 – Tax Exempt
How do I report this? 1099 INT – Line 8 – Tax Exempt Interest = 6,000 1099 INT – Line 13-Bond Premium Tax Exempt=1,500 1099 (Right Hand Side) Adjustments to Interest-Bond Premium Tax Exempt=1,100 Cash… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
Tax question - Form 1099, Line 8 Tax Exempt Interest
Tax question - Form 1099 , Line 8 Tax Exempt Interest reflects $500; OID 1099 is 0. Under heading Detail for tax exempt interest it says tax exempt interest is $300. Under Detail for Tax Exempt OID it… read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
727 satisfied customers
Is there an exemption for the Philadelphia sales tax? For
Is there an exemption for the Philadelphia sales tax? For example a business enterprise requires a service provider services. Such as pest control service for rental properties? Or, accounting service… read more
abci168
abci168
Principal
27 satisfied customers
The $14,000 gift tax exemption per person - can the gifts
The $14,000 gift tax exemption per person - can the gifts only be transferred to spouses and children or can it be given to son-in-law?… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,217 satisfied customers
I have an agricultural tax exemption for a small farm. I am
I have an agricultural tax exemption for a small farm. I am buying a truck to be used for the farm and personal. I would like to know if I can use my tax exemption for the truck purchase? I did some r… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Foreign earned income tax exemptions. My husband started
foreign earned income tax exemptions. My husband started working in the UAE in February 4, 2017. How many days is he allowed to physically visit the USA in a 12 month period to be qualified for the ex… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
If I file exempt on federal taxes for the whole year but
if I file exempt on federal taxes for the whole year but filing head of household and dependent 13 years old...and paying my student loan 169 dollars a month … read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,217 satisfied customers
Is the holder of an A2 visa exempt from US income tax on the
Is the holder of an A2 visa exempt from US income tax on the sale of US realty, held for investment?… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
I received a 1099 with Interest income box 8 tax exempt
I received a 1099 with Interest income box 8 tax exempt interest checked with an amount in it. Box 9 specified private activity bond interest is not checked and does not have an amount in it. Q is the… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
My income is tax exempt, as it is from an international
Hi,My income is tax exempt, as it is from an international organization (World Bank). My husband and I will file taxes jointly. Do we have to fill out my income anywhere on the 1040 form even though i… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x