Which of the following is not an effective strategy for mitigating double taxation in a Ccorporation?
A) C corporations can make an S election.
B) C corporations can pay dividends to their shareholders.
C) C corporations can shift income to shareholders via deductible payments.
D) None of the choices are correct. All of the choices are effective strategies to mitigate or avoid double taxation.

Question

Quizplus · Accepted Answer

Paying dividends to shareholders does not mitigate double taxation; it actually results in double taxation as the corporation pays taxes on its income, and shareholders pay taxes on the dividends received.

Which of the Following Is Not an Effective Strategy for Mitigating