Taxation on firms’ distribution, passive income, accumulated positive & negative adjustment accounts.
This research examines the taxation of distributions made by Subchapter S Corporations and the use of accumulated adjustment accounts by such corporations. These two topics are closely interrelated; however, they are discussed separately in this paper.
Taxation on Distributions
The form of business organization has a direct impact on the financial structure and financial performance of a firm. This impact results from differences in income tax liabilities for different types of business forms, and differences in the abilities of the different types of business to generate …