Have a Tax Question? Ask a Tax Expert
Hi, my name is Mark. I will be happy to help you with your questions. Was the tax refund from the insurance company?
Was the overpayment applied to the next year?
On the 1120 you would not need to do anything.
It depends on the situation. Can you give me more information about the gain? Do you report on the cash basis or accrual basis?
If the gains have been realized. That is the corporation received the cash then most likely it would need to be recognized as income.
There are a few things that you can do. Could a portion of the profit be paid as bonuses for the officers? Do you need to buy any equipment?
Bonus would be subject to payroll taxes. These would be reported on a W-2. Yes these would be taxable to the officers. The benefit would that this would avoid the double taxation that is associated with C-Corporations.