Should an S-corps Pay Profits in the form of Dividends?

by Toby Mathis

May 4, 2021

Free Tax Tips & Strategies

In this episode of Tax Tuesday, tax attorney Toby Mathis, Esq. and CPA & Tax Director at Anderson Business Advisors, Jeff Webb, bring tax knowledge to the masses and answer your tax questions LIVE!

06:58 – How does a single, high W-2 earning individual take advantage of passive losses? 13:17 – How are inherited stock shares treated when sold?

21:35 – Is there any limit on using required minimum distributions for multiple charitable donations? Could a partial RMD be taken in January, and then have the charitable portion spread out in donations over the rest of the year?

24:58 – Should an S-corp. pay profits as dividends?

33:23 – Is it preferable to have a C-corp. or an LLC as your holding entity?

40:50 – Can a part-time W-2 employee (20 hours per week) be considered a full-time real estate investor (I currently own 4 rentals) and claim deductions such as a home office and paying my child to perform bookkeeping?

51:35 – I have lived in my house since 2016. If I get married soon, do I qualify for a 1031 exchange assuming my future wife never lived in the house? Also, can I buy my next primary residence first and then sell my previous one?

54:38 – Are proceeds received from winning a case in court – say $20 million – taxable? 1:04:07 – I need to increase my income. How should one file with multiple properties?

1:07:45 – What is the process to begin issuing W-2s from my C-corp.? It’s been an active entity for several years, but I’m just now needing to pay a W-2 salary.
As always, take advantage of our free educational content and every other Tuesday we have Toby’s Tax Tuesday, a great educational series. Our Structure Implementation Series answers your questions about how to structure your business entities to protect you and your assets. One of my favorites as well is our Infinity Investing Workshop.

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Author Bio

Toby Mathis, Esq. ~ Founding Partner, Attorney, Author & Business Tax Expert.

Toby Mathis is a founding partner of Anderson Law Group and current manager of Anderson’s Las Vegas office.

He has helped Anderson grow its practice from one of business and estate planning to a thriving tax practice and national registered agent service with more than 18,000 clients.

In his work as an attorney, he has focused exclusively in areas of small business, taxation, and trusts. In addition, Toby was the past director and host of the longest-running local business radio program on KNUU in Las Vegas “The BOSS Business Brief”.

He sits on the board of directors for several companies and was recently appointed to the local board of Entrepreneurs’ Organization, a worldwide association of owners of successful businesses. He has authored more than 100 articles on small business topics and has written several books on good business practices, including first, second and third editions of Tax-Wise Business Ownership and 12 Steps to Running a Successful Business.