Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Income Taxes and Record Keeping ( tax ) -- Ignore unavailable to you. Want to Upgrade?

To: Pierre who wrote (454)	1/15/1998 1:20:00 AM
From: Colin Cody	Read Replies (1) \| Respond to of 5810

Pierre, Investing is a passive activity that could disqualify your S-Corp from its election under certain circumstances, if it was once a C-Corp in the past. (I assume you meant Investing and not Day Trading, since where'd you have time to practice law otherwise? (g)) . How does your Corp practice law with no employees? The IRS may take a dim view of that, but as you suggested, if you have no wages from the S-Corp, then TECHNICALLY you have no SECA (FICA) tax. . IMO you could be hit up for SECA/FICA if the Corp has operations and salaries that are "too low" or nonexistent! . The IRS is very aware of the S-Corp/no FICA ploy. I know some people advise to go that way. Personally, I don't recommend it. There are better ways to minimize taxes without that kind of potential exposure for an audit adjustment, IMO. . Colin