Paying Taxes Can Tax The Best Of Us: Difference between revisions

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Latest revision as of 09:55, 2 September 2026

The courts have generally held that direct taxes are limited to taxes on people (variously called capitation, poll tax or head tax) and property. (Penn Mutual Indemnity Organization. v. C.I.R., 227 F.2d 16, 19-20 (3rd Cir. 1960).) All the other taxes are typically called "indirect taxes," within their tax an event, rather than particular or property by itself. (Steward Machine Co. v. Davis, 301 U.S. 548, 581-582 (1937).) What was a straightforward limitation on the power of the legislature based on the topic of the tax proved inexact and unclear when applied a good income tax, which can be arguably viewed either as a direct or an indirect tax.

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Another angle to consider: suppose your enterprise takes a loss of revenue for the whole year. As a C Corp as a no tax on the loss, however there additionally no flow-through to the shareholders significantly an S Corp. The loss will not help your personal tax return at entirely. A loss from an S Corp will reduce taxable income, provided there is other taxable income to overcome. If not, then put on weight no tax due.

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