What % Rate of Owner's Draws Taxes at ? Are there any lump sum restrictions or Tax Saving techniques ?

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What % Rate of Owner's Draws Taxes at ? Are there any lump sum restrictions or Tax Saving techniques ?

2007-10-27 08:06:29 · 2 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States

2 answers

Owner's draws are not taxed. The net profit on the business activity is what is taxed. How much the owner takes out of the business is irrelevant as far as tax liability is concerned.

2007-10-27 08:58:15 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋

Owner's draws are irrelevant in determining tax. The owner is taxed on earnings, not home much is taken out for personal use.

2007-10-27 15:11:02 · answer #2 · answered by Anonymous · 0⤊ 0⤋