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A Beginner’s Guide to C Corporation Distributions

C corporations may distribute money or property to shareholders. The method used to make a corporate distribution will determine the tax consequences of the withdrawal. Generally, non-liquidating distributions (those that don’t dissolve the business) will take the form of dividends or a nontaxable return of capital to the shareholders. Of course, a corporation can distribute […]

What is I.R.C. §280E?

In the Comprehensive Drug Abuse Prevention and Control Act of 1970, 21 U.S.C. §801–971 (1970), (“Controlled Substances Act” or “CSA”), Congress created a regime to curtail the unlawful manufacture, distribution, and abuse of dangerous drugs (“controlled substances”). Congress assigned each controlled substance to one of five lists (Schedule I through Schedule V). See §812 of […]

How to Determine the Amount of Overhead to Be Allocated to Finished Goods Inventory

Allocating direct costs to production is pretty straightforward — you know what the materials and direct labor costs. The hard part is determining the amount of overhead to allocate to finished goods inventory. Overhead expenses are those indirect costs, like staffing the front office, paying for office supplies, the cost of the employee Christmas party […]