How to use corporate advances to avoid double taxation

Do you own a C corporation? If you do, you have a nasty double-taxation problem.

EXAMPLE: Let’s say your corporation has $10,000 of profits after paying your salary and other expenses. If you want to use that money for personal purposes, you have to:

1. Pay the corporate tax on the income
2. And pay a dividend tax on the transfer from the corporation to your personal bank account.

That’s double taxation and it costs you money. But there is a money-saving alternative as you’ll learn when you read my new article titled Tax Tips: Use Corporate Advances to Escape Double Taxation.

Three ways our fact-filled article can help you:

1. We’ll explain how to save a lot of money! If you borrow the $10,000 instead of taking a distribution, you can repay the money at a tax cost of about $9.81 a year. (The tax on dividends would cost you $1,500!) You’ll get all the details when you read the full article.
2. You’ll learn what the IRS is looking for. For starters, your paperwork needs to look exactly like the paperwork you’d create for a loan to (or from) an unrelated party, like a bank. We’ll explain this and a lot more when you read the full article.
3. We’ll show you how to pay a low interest rate. When you take an advance, you have to pay interest. Each month, the IRS publishes the minimum acceptable interest rates in the Internal Revenue Bulletin. We’ll show you how to pay the lowest possible rate when you read the full article.