-
Making withdrawals from your closely held corporation that aren’t taxed as dividends
February 15, 2022
Categories: Business, Consulting, Tax, Tax Breaks, Tax Cuts
Do you want to withdraw cash from your closely held corporation at a minimum tax cost? The simplest way is to distribute cash as a dividend. However, a dividend distribution isn’t tax-efficient since it’s taxable to you to the extent of your corporation’s “earnings and profits.” It’s also not deductible by the corporation. Five alternatives Fortunately, there are several alternative methods that may allow you to withdraw cash from a corporation while avoiding