Reason #1 is a BIG reason not to want it to pass. The American Jobs & Tax Loopholes Act has a provision for S Corp owners who provide professional service to have to pay self employed income tax on their dividends. One of the perks to choosing S Corp as your business entity is that after you have established a reasonable wage and are paying payroll taxes on that reasonable wage the funds you pull out as dividends are not subject to self employed income tax. The Loophole Act wants to tax the funds withdrawn as dividends as self employed income tax.
Reason #2 to watch the American Jobs and Tax Loopholes Act is a reason to want it to pass. This provision extends the homebuyer credit closing requirement from 6/30/10 to 9/30/10. The banks are a little back logged with the requests to close by June 30th and it would seem a shame if homeowners met all the requirements to receive the credit but missed out because the bank wasn’t able to arrange a closing by June 30th.
Reason #1 affects me so I am lobbying that this Act does not pass or if it does that the provision regarding S Corp owners is removed. Where do you stand on the American Jobs & Tax Loopholes Act?
