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tax question

tax question# Business - 商学院

b*32007-09-13 07:09

1 楼

Mike Barton owns Barton Products, Inc. Barton Corporation expects $500,000
of net income before taxes in 2007. Mike's salary is $230,000 per year(
already deducted in computing Barton Corporation's $500'000 net income)
Should Mike increase his salary from Barton to reduce the overall tax burden
to himself and Barton Products? Assume the corporation and Mike each would
incur a 1.45% payroll tax with the corporate portion being deductible.
I am not quite sure about the last sentence. Does it mean

r*z2007-09-13 07:09

2 楼

我觉得公司的net income = current net income - additional salary * (1+1.45%)

burden
ignore

【在 b*****3 的大作中提到】

: Mike Barton owns Barton Products, Inc. Barton Corporation expects $500,000
: of net income before taxes in 2007. Mike's salary is $230,000 per year(
: already deducted in computing Barton Corporation's $500'000 net income)
: Should Mike increase his salary from Barton to reduce the overall tax burden
: to himself and Barton Products? Assume the corporation and Mike each would
: incur a 1.45% payroll tax with the corporate portion being deductible.
: I am not quite sure about the last sentence. Does it mean

b*32007-09-13 07:09

3 楼

Thank you!
Do i need to deduct the the 1.45% payroll from the $230,000 when calculating
the taxable income?

r*z2007-09-13 07:09

4 楼

Personal taxable income? It didn't say personal portion is deductible... so
I guess no

calculating

【在 b*****3 的大作中提到】

: Thank you!
: Do i need to deduct the the 1.45% payroll from the $230,000 when calculating
: the taxable income?