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Dividends/distributions tax rate with an S-corp

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aaronred

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Dec 7, 2003, 9:40:11 PM12/7/03
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I'm considering changing my LLP to an S-corp. If I pay myself an appropriate salary, the rest of the money flows through as a distribution/dividend. Is this money taxed at the new 20% maximum for dividends, or is it taxed at my regular tax rate?

William S.

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Dec 7, 2003, 9:59:06 PM12/7/03
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"aaronred" <aaronr...@nospam.msn.com> wrote in message
news:28780327eb2f0cb2...@localhost.talkabouttaxes.com...


it's not a dividend, it gets taxed at your regular rate


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