Inheritance Law

This digital document is an article from The Tax Adviser, published by American Institute of CPA's on April 1, 1996. The length of the article is 1192 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

From the supplier: Use of nonqualified deferred compensation as an alternative to bonusing-out profits can provide closely held corporations with reduced and deferred tax burdens. The bonusing-out method, intended to avoid double taxation or excess accumulated earnings problems, can result in big employment tax liabilities. Deferred compensation can be timed to reduce FICA taxes as well as taking advantage of the 15% rate on the first $50,000 of corporate income. Deferred compensation agreements should be entered into prior to services being rendered and should represent reasonable compensation.

Citation Details
Title: Closely held C corporations: using deferred compensation to capture the 15% bracket.
Author: Michael W. Duran
Publication: The Tax Adviser (Magazine/Journal)
Date: April 1, 1996
Publisher: American Institute of CPA's
Volume: 27 Issue: n4 Page: 208(2)

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