Why haven't I updated my blog...

c. Fringe Benefits
(1) are only available to EEs, including shareholders, but not to Ps
(2) allow deductions for a corp – group term life insurance, medical reimbursement plans, food/lodging during transportation
ii) Tax Reform of 1986 – made it clear that the corporation was a tax penalty device
a. Brought the tax rates way down for individuals
(1) so it made the accumulation and bailout strategy no longer applicable
 you could get the money now and pay low rates, so why wait?
b. Created parity b/w self-employed and EE pension and Profit-Sharing Plans
(1) so now this was available in a Pship to Ps themselves
c. did away w/ accelerated depreciation – had to use straight line or schedule set out in the IRC
d. The Fringe Benefits were still there for corporations
(1) This is the last reason to incorporate
(c) So LLC s are the wave of the future
(d) Zeroing out
i) a way of reducing the corporation’s income to minimize the FIT that the corp has to pay and to avoid double taxation