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Kevin Greenard: Clarifying the confusion between eligible and non-eligible dividends
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Senator Tester s small business test | Columnists
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Don t gut the small business deduction
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Introduction: Active vs. Passive Income
Operating a business through a corporation can lead to
significant deferral advantages over time. Those who choose to
operate their business through a corporation can take advantage of
the Small Business Deduction on active business income
earned in a corporation and pay a much reduced rate of corporate
tax until income is ultimately distributed to the shareholders.
However, there are certain pitfalls that can reduce the benefits
of operating a business through a corporation. The distinction
between active and passive business income
in the Tax Act comes as a surprise to most taxpayers who have never
expected to start voting any moment now. democratic minority leader nancy pelosi there no doubt probably not extolling the virtues of this bill. josh barrow. again, house likely to pass it. what happens in the senate? well, think the senate is the tougher chamber for this. first of all republicans have a narrower majority there and the bill that they re work on in the senate looks quite different from the house bill in a number of ways. it would repeal the individual mandate in obamacare. that s a popular idea with a lot of republicans. the mandate is unpopular broadly with the public. but that would cause significant disruption in insurance markets. maine senator collins has said she s very reluctant to do anything to health care as part of the tax bill. some senators saying they want the bill that comes closer to not impacting the deficit. and then you have some provisions about so-called pass-through businesses. people talk about this as a small business deduction but it can even