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Natasha owns a S corporation, and Adam is the sole shareholder of a C corporation. In the current year both businesses make a net profit
Natasha owns a S corporation, and Adam is the sole shareholder of a C corporation. In the current year both businesses make a net profit of $60,000. Adam receives a dividend of $60,000 from the C corporation. For the current year, Natasha must report $60,000 of income on her individual tax return, but Adam is not required to report any income from the corporation on his individual tax return.
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