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Red
Triangle's Bottom Line Report #106 Everyone knows that a corporation is considered a "privileged" form of business because of the deductions available to corporations that are not available to most unincorporated businesses. But most corporation owners don't know half of the ways that are available to take tax-free money out of their corporations legally! The tax code has always been kinder to businesses than to individuals, and this will always be so. A strong American economy depends on the health of American businesses, and business owners can reap the benefits of this favorable tax treatment on their own tax returns. FRINGE BENEFITS Fringe benefits are one of the ways in which owners of corporations can take tax-free money out of their businesses. Fringe benefits are noncash "perks" that can provide immediate economic benefit to an owner-employee (and other employees) of a corporation. They are generally paid for by the corporation with pre-tax dollars, and they may or may not be includable in the employee's compensation. Often, the benefits to the owner-employee are more valuable than their cost to the corporation. Even though the value of fringe benefits --- except those specifically excluded by the Internal Revenue Code --- are includable in taxable compensation, they represent tax-free withdrawals to the extent of the recipient's effective tax rate. (They are paid for with the corporation's pre-tax dollars instead of with the recipient's after-tax dollars.) Nontaxable fringe benefits represent the best tax advantage to an owner-employee and her corporation. Nontaxable fringe benefits generally fall into the following four categories: (1) de minimis fringe benefits, (2) no-additional-cost services, (3) working condition fringe benefits, and (4) qualified employee discounts. Nondiscrimination rules apply to most tax-free fringe benefits. The purpose of these rules is to penalize corporations that discriminate in favor of highly-compensated individuals. The nondiscrimination rules apply to no-additional-cost services and qualified employee discounts. They do not apply to de minimis or working condition fringe benefits.
NOTE: "20 Ways to Take Tax-Free Money Out of Your Corporation!" is covered under Red Triangle's UNCONDITONAL MONEY-BACK GUARANTEE: Use the information for up to 90 days risk-free. If you are unhappy with your purchase for any reason, you may return it within 90 days for a refund of the purchase price---NO QUESTIONS ASKED!
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To find out more about fringe benefits
and other ways to take tax-free money out of your corporation, order Red Triangle's
Special Report #106 entitled 20 WAYS TO TAKE TAX-FREE MONEY OUT OF YOUR CORPORATION!
for only $20.00. Click below to order!