TAX 9866 Lecture 25: 3
Document Summary
Tax on corps dates way back to first west indies company when britain recognized the. West indies company as something other than people/trade routes. Original corp tax and individual tax used for war (low levels at that time) Wwii dramatic increase and reliance on individual. First us tax of 1894 imposed 2% tax on corporate net income. 1909 tariff act corporate level tax on income over ,000 (a lot of $ during that time) Sixteenth amendment allows federal government to impose income tax on individuals not corporations. Corporations had already been sanctioned prior to 16th amendment. No deduction to corporations for dividends paid. Reic= real estate investment company= mutual fund. Invests in passive real estate to qualify and different mechanisms apply. Almost flow-through in that the entity itself does not pay tax. Reit= real estate investment trust= corporation with special status under irc.
