Corporate Taxable Income

The corporation's taxable income is calculated as gross income, minus deductions allowed to corporation. Income includes gross profit from sales, interest and dividends, rents, royalties, and gains and losses. Capital contributions are not considered income.

Possible corporate deductions include life insurance premiums, health and disability insurance, cafeteria plans, 401k pensions and profit sharing plans, travel expenses, entertainment, and qualified personal expenses.

The corporation is allowed to take a full deduction for many expenses that provide benefits to individuals involved with the corporation, while those same expenses are not deductible to sole proprietorships or partnerships. Silver Shield Services, Inc. offers bookkeeping, payroll and tax preparation as part of our corporate services. Give us a call at (775) 577-4822 to discuss your corporate strategies.