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.
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.
