SweetLeaf
Level 2
04-21-2022
10:12 AM
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I have a C-Corp client that just started business in Nov 2021. I have read that you can elect to not get taxed on up to $250,000 as long as it stays in the Retained Earnings account. Is this true and if so, how do I make this election in Lacerte?
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sjrcpa
Level 15
04-21-2022
10:36 AM
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Not true.
The more I know the more I don’t know.
sjrcpa
Level 15
04-21-2022
10:37 AM
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$250,000 Retained Earnings is deemed to be held for reasonable needs of the business and not subject to accumulated earnings tax. Totally different from income tax.
The more I know the more I don’t know.
