Not sure if your company should revoke their Corporation’s election to be taxed as an “S” Corporation? CST Group Partner Mark Watts explains the pros and cons.
On December 22, 2017, President Donald J. Trump signed H.R. 1, the Tax Cuts and Jobs Act. One of the most sweeping provisions of the Act is the corporate income tax rate. The Act replaced the prior law-graduated corporate tax rate, which taxed income over $10 million at 35%, with a flat rate of 21%. The new rate took effect January 1, 2018. This change has many people asking if they should revoke their Corporation’s election to be taxed as an “S” Corporation effective January 1, 2018.