July 5, 2004


Comments

 
 
 
  • INTERESTING GREAT INFORMATION TO USE AGAINST TAXATION
    Anonymous
     
     
     
  • Like the general theme of the story, the following statement made in paragraph three is incorrect and misleading: "In other words, the flow of payments is identical to that of credit unions." A sub S corporation puts the owners name on the flow of payments and net worth, and the net worth becomes part of the owners' personal net worth, much like income from a partnership or limited liability corporation. The sub S ownership interest can later be sold, borrowed against, or transferred to children. Such is not the case with the "ownership" interest in a credit union, it is not perfected and hence fictional. Income taxes are in fact assessed to shareholders of sub S corporations and payable to those who are subject to taxation. Sub S is a tool to reduce or manage income tax liability not forever avoid it. Frankly, it seems many credit union writers are confused about sub S status or seek to mislead readers in an effort to make commonplace profit making business activities seem wrong. Sub S corporations are not trying to emulate the credit union model. Why would a shareholder abandon their equity? Perhaps credit unions, though, should emulate the Sub S model. This is America.
    Anonymous