Don't File Farm C Corps Before you File Owner's Tax Returns

Most Farm C Corporations have trapped earnings and profits. Issuing a deemed dividend may get this out tax-free.

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There are still a lot of farm C corporations in place and many of them have some trapped earnings and profits that the owners would like to get out of the corporation on a tax-efficient basis.

One option is to pay a cash dividend from the corporation to the owner. However, this requires cash to be paid and most farm corporations need to retain the cash for working capital.