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Old 02-07-2007, 03:49 PM
bookkeeping bookkeeping is offline
Junior Member
 
Join Date: Jan 2007
Posts: 21
Question What is the significance of having Retained Earnings in a Corporation?

Dear TaxGuru,

I fail to understand why some C corporations have taxable income especially, based on your prior posts you suggested strategies to avoid double taxation.

On what basis then should a C Corporation of have residual taxable income and why should a client leave any taxable profits at the end of the taxable year?

Grateful for your answer, tks..
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