Jane owns 100% of Carnate Corporacon ::tock and also s tne oompany as its CEO. Carnate is C oorporation tha: Opects to earn $420.000 before deducting any Ralary paid to Jare Jane wants th corporation to pay har S23O,000 for the currenc year in pre-tax dolas. Sha i onadering three dfferant options: (1) &3230.000 dividend. (2)$115.000 dividend plus $115.000 salery, or (3)3230.000 saey (Cick tha icon to viaw addtional information.) Cick the icon to view the tax rate schedules) Read the requirement First, csculate the total tac Esbility (corporate and individuel) for each of the three options. Start with option 1, then option 2. and finally option 3 Dats Table Opton 1:$230,000 dvidend Married, Filing Joint and Surviving Spouse Individusl The tax is: 10% oftexable income. 1,905.00+1296 of the axcess over $19.030 8,007.00 22% of the cess over S77, 400. $28,170.00 + 24% of the cocess over S 166,000. S64.1 79.00 + 32% of the excess over S315.000. 45.689 50 + 35% of the exce53 over 3400.000. 380689 5037% of the excess over 3000.000 If taxable income is: Not over $18.050 Over $19,050 but not over 577,400 Ovar $77,400 but not aver 5105,000 Over $186,000 but nat over $315,000 Over $316,000 but nat over 3400,000 Over 3400.000 but not over 3800.000 Over 9800.000 Requirement Calculate the total tax liablity (corporate and indvidual) for each of the hree opiors, and determine which option resuts in the lowwest oversl tax Preterential Rates for Adjusted Net Capital Gain (ANCG) and Qualified Dividends LTCO Rate Singe Up to 338.600 > S33.000 but not over 5425,800 Over $425800 Fling Jointly Head of Household Up to 551.700 $51,700 but not over $452.400 Over $452,400 Print Done 0% Up to $77.200 15% 577,200 but not over $479,000 Ovar $479,000 . Tha oorreaconding amountsmarred fing separately are half of tha armours tr ting jointly. Tha pratarantal rate i"aro for taxable income up to 38.00 if marred fling separately More Info Print Done Any dividends qualty for the preferential capital gains tax rates. Jane's husband haa no camings ct hs own in the current year, so herincame is the zcia zource for the family Jane and her huband fle ajoint tax retum and claim the s24,000 standard deducton Print Done Jane owns 100% of Carnate Corporacon ::tock and also s tne oompany as its CEO. Carnate is C oorporation tha: Opects to earn $420.000 before deducting any Ralary paid to Jare Jane wants th corporation to pay har S23O,000 for the currenc year in pre-tax dolas. Sha i onadering three dfferant options: (1) &3230.000 dividend. (2)$115.000 dividend plus $115.000 salery, or (3)3230.000 saey (Cick tha icon to viaw addtional information.) Cick the icon to view the tax rate schedules) Read the requirement First, csculate the total tac Esbility (corporate and individuel) for each of the three options. Start with option 1, then option 2. and finally option 3 Dats Table Opton 1:$230,000 dvidend Married, Filing Joint and Surviving Spouse Individusl The tax is: 10% oftexable income. 1,905.00+1296 of the axcess over $19.030 8,007.00 22% of the cess over S77, 400. $28,170.00 + 24% of the cocess over S 166,000. S64.1 79.00 + 32% of the excess over S315.000. 45.689 50 + 35% of the exce53 over 3400.000. 380689 5037% of the excess over 3000.000 If taxable income is: Not over $18.050 Over $19,050 but not over 577,400 Ovar $77,400 but not aver 5105,000 Over $186,000 but nat over $315,000 Over $316,000 but nat over 3400,000 Over 3400.000 but not over 3800.000 Over 9800.000 Requirement Calculate the total tax liablity (corporate and indvidual) for each of the hree opiors, and determine which option resuts in the lowwest oversl tax Preterential Rates for Adjusted Net Capital Gain (ANCG) and Qualified Dividends LTCO Rate Singe Up to 338.600 > S33.000 but not over 5425,800 Over $425800 Fling Jointly Head of Household Up to 551.700 $51,700 but not over $452.400 Over $452,400 Print Done 0% Up to $77.200 15% 577,200 but not over $479,000 Ovar $479,000 . Tha oorreaconding amountsmarred fing separately are half of tha armours tr ting jointly. Tha pratarantal rate i"aro for taxable income up to 38.00 if marred fling separately More Info Print Done Any dividends qualty for the preferential capital gains tax rates. Jane's husband haa no camings ct hs own in the current year, so herincame is the zcia zource for the family Jane and her huband fle ajoint tax retum and claim the s24,000 standard deducton Print Done
