Q: I'm switching my business from a C corporation to an S corporation. I understand that S corporations don't pay any tax. Will I need to make quarterly tax payments? A.P., Cincinnati
A: Possibly. Even though income and deductions are passed through to individual shareholders of your S corporation, the S corporation still must make quarterly installment payments of estimated tax if it owes $500 or more for tax on certain built-in gains, excess net passive income tax and the investment credit recapture tax. For instance, your company may owe the BIG (built-in gains) tax if it owns assets that appreciated in value while the company operated as a C corporation. Tip: For more on estimated taxes, visit www.irs.gov/faqs/faq-kw62.html.
Like what you've read? ...Republish it and share great business tips!
Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...
We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.
The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.
" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/22700/estimated-tax-rules-for-s-corporations "