jps wrote:
On Thu, 22 May 2014 13:22:15 -0500, Califbill
wrote:

wrote:
On Thu, 22 May 2014 00:10:17 -0500, Califbill
wrote:

jps wrote:

I'm sorry, you're arguing that my labor on behalf of the company's
should not be considered an expense?

I am saying, why is not dividends an expense. If your salary is an
expense, then dividends should be considered an expense. That is just a
salary to the owners also. You say you are an owner of the C corp, so that
salary is just a dividend to you.

I agree with JP on this. The money he pays himself is taxes as
ordinary income.
It is a business expense.
Dividends are profit, after everyone is paid and all expenses are
recovered.
The problem with dividends is the corporation pays taxes on them at a
ridiculous rate (compared to virtually every other country in the
world) and then the stock holder has to pay tax on that same money
again.

If they do not have enough other activity, they may end up filing the
short form and pay the regular income rate on them too.
I know a lot of people with relatively simple tax returns who are not
going to screw with a schedule D worksheet, just to save a little
money on dividends.
I think the government makes it hard on purpose, to get that extra
money.

Exactly my opinion. These people who say the reduced taxes are unfair,
ignore the fact the dividends have already been taxed at a rate higher than
the highest personal income tax rate. Just treat them like JPS dividend
for working at the company. Send it out untaxed at the corporate level and
the payee pays at ordinary income levels

Baloney. You choose to invest to build income. You have no overhead
involved in your investment other than making it and monitoring it.
Not like you've invested effort, since that effort was expended on
making the money in the first place.

And I do not get to take a loss completely if the investment dies. The
money is an employee of mine. Why should it be doubly taxed at excessive
rates?