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The moment the money is spent on something seen as personal benefit then tax is owed. During an audit, if you did something funny like repeatedly pay for dinne
by josho 10y ago
The moment the money is spent on something seen as personal benefit then tax is owed.
During an audit, if you did something funny like repeatedly pay for dinners between you and your wife claiming it was a business meeting between corp x & y then I suspect the auditor will come down hard on that as an obvious abuse
- Eridrus 10y agoThis isn't what I meant. I meant using the corporation as an uncapped 401k which essentially lets you defer tax until years where you have less income, therefore paying less income tax.
- kemiller 10y agoThat's not what he's saying. He's saying you can just basically hoard your income there and pay yourself a smaller salary. You could invest tax-free until you take it out.