DealershipForum.com - View Single Post

Ralph · 03-22-2010, 03:24 AM

I'm glad I wasn't able to convert my business to an "S" corp a few years ago. Anyone who is running their dealership and/or the land ownership under the dealership corp who shows more than I think I saw $250,000 has a big tax increase. For those who aren't sure what that means, if Joe Pelosi, (just a random name) owns Pelosi Chrysler and he makes $300,000 and the dealership makes another $200,000 Joe's personal tax return is $500,000. There's an added tax to pay for this mess on income over $250,000 that kicks in immediately to fund benefits that begin in 2014-2016.

So after 10 years of additional taxes and 5 years of additional benefits, wow, there's more tax money in than benefits out....sudden decrease in the spending. I wish I could use this kind of math at the dealership each year.

03-22-2010, 03:24 AM	#11
Ralph Senior Member Join Date: Nov 2009 Posts: 636	I'm glad I wasn't able to convert my business to an "S" corp a few years ago. Anyone who is running their dealership and/or the land ownership under the dealership corp who shows more than I think I saw $250,000 has a big tax increase. For those who aren't sure what that means, if Joe Pelosi, (just a random name) owns Pelosi Chrysler and he makes $300,000 and the dealership makes another $200,000 Joe's personal tax return is $500,000. There's an added tax to pay for this mess on income over $250,000 that kicks in immediately to fund benefits that begin in 2014-2016. So after 10 years of additional taxes and 5 years of additional benefits, wow, there's more tax money in than benefits out....sudden decrease in the spending. I wish I could use this kind of math at the dealership each year.