How would solar federal tax credits benefit the owner of a S corp?
December 12th, 2008 | by Michael |
James F asked:
A trade that puts in a solar system? entitled to a charge of 30% federal investment. I'm not sure if or how this could benefit owners of an S Corporation. I'm also wondering the same about C corps and LLC 's? I was told that the charges of the sun would not benefit the body of S and similar perch? alcun'imposta typically do not pay income tax for corp. I'm not sure if this? true. Thanks for 's? will help with that.
JAY
A trade that puts in a solar system? entitled to a charge of 30% federal investment. I'm not sure if or how this could benefit owners of an S Corporation. I'm also wondering the same about C corps and LLC 's? I was told that the charges of the sun would not benefit the body of S and similar perch? alcun'imposta typically do not pay income tax for corp. I'm not sure if this? true. Thanks for 's? will help with that.
JAY
One Response to “How would solar federal tax credits benefit the owner of a S corp?”
By Bob F on Dec 13, 2008 | Reply
This credit would benefit the owners of an S corp on their personal returns as their share of the credit would be passed to them on the Schedule K-1 that they would receive from the S corp.
In the case of a C corp, it would be a credit against their tax liability just like any credit.
As far as an LLC, the question doesn’t make sense since the term LLC is an adjective describing the company - it is not a form of business in itself. In other words, and LLC could be a sole propriatorship, a partnership, an S Corp, or even a C Corp.
In a nutshell, this credit, like all credits, would benefit whoever pays the taxes of the business - the C corp itself, or the owner(s) or the sole proprietorship or partnership or S corp.