Does a corporation have capitol gains tax if so what is the rate if the amount is less than 75,000 dollars?

Answer 1

S-corp passes through income to the shareholders via a K-1, and the shareholders would report the capital gains income on their personal tax return. c-corp, there is no capital gains rate. I am a tax preparer, and have a business client who every year has capital gains, and my excel spreadsheet calculation does not take into account any adjustment for capital gains, and my spreadsheet matches exactly the 1120 tax return. The only break that corporations get in regards to investments is a dividends received deduction where depending on the type of dividends the corporation gets to deduct from taxable income anywhere from 42% to 100% of the dividends received.

Answer 2

It varies, depending on if it is long term or short term capital gains.

If the corporation bought stock and sold it before a year is up, it is short term.

If the corporation bought stock and sold it after a year, it is short term.

If the corporation bought stock, and did not sell it, there is no capital gains tax.

If it is an S-Corp, some capital gains may still be taxed.

Answer 3

Yes, its either their overall tax rate if the asset was held less than 1 year, or 15% for longer than a year (same as individuals). There are however all sorts of exceptions and loopholes - so talk to an advisor, but the above is the quick answer.

Answer 4

Assuming that it is for a C-Corp and not an S-Corp......

Income is income. C-Corporations do not receive a break in tax rates for capital gains.

You are probably looking at least 25% and probably as high as 39% for federal taxes plus your state taxes.