Edsel Posted August 26, 2018 Report Share Posted August 26, 2018 What has happened to these under the new law: Personal Service Corporations. It appears this should now be defunct. The entire idea was to eliminate the lower tax bracket for professionals who used the corporation for little other than personal services. I understand there is no longer a lower bracket for a C corp, all income is taxed at 21% i.e. If taxable income is one dollar, the tax is now 21 cents. Personal Holding Corporations. Don't know about the future of this. The new law could still allow a special 20% tax on all undistributed earnings for C corporations with this kind of income. Anyone out there knowledgeable enough about the new law to help me out with this?? Quote Link to comment Share on other sites More sharing options...
jklcpa Posted August 27, 2018 Report Share Posted August 27, 2018 PSC C corps now pay the same rate of 21%. Some early proposals had the PSC rate at 25% but that didn't make it to the final legislation that was passed. PHC tax and accumulated earnings tax are both still in effect, rate unchanged at 20%. 2 Quote Link to comment Share on other sites More sharing options...
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