Update – Foreign Sales Could Provide Big Tax Breaks
We previously explained, in this blog post, the advantages of forming an IC-DISC when a manufacturer has foreign sales. With the uncertainty of the tax laws, many business owners may have been hesitant to pull the trigger. Well now, there are no more excuses.
The recent fiscal cliff tax agreement kept a significant differential between taxation of dividends (top rate 20% — plus 3.8% health care tax) v. ordinary income (top rate 39.6% — plus 0.9% health care tax). This keeps in place the underlying basis for the IC-DISC tax benefits.
As we have stated, the formation of an IC-DISC is relatively simple. If your business qualifies, don’t let another year go by.