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Home of the Structured IC-DISC
A Program designed for Closely Held Exporters,
Using IC-DISCs owned by non-corporate shareholders.
While the better known, and more controversial concepts, such as FSCs and ETI, were repealed in 2004, the IC-DISC has quietly risen in prominence to become even more valuable to Closely Held Exporters than the repealed and phased out concepts.
The essence of a "Structured IC-DISC" is to maximize the pass through features of IC-DISCs that were greatly enhanced by the 2003 Tax Act.
Whether by design or chance, Closely Held Exporters are able to enjoy Tax benefits not otherwise available to Publicly Held Exporters, nor any other type of business structure. The benefit is based on the structure of the IC-DISC, in combination with its Individually taxed Shareholders, not the Exporter.
Shareholders must be structured so the IC-DISC Dividends will be taxed at the personal tax level, as Qualified Dividends eligible for the maximum Tax Rate of 15%, through 12/31/2010, as extended by May 2006 Tax Bill.
Publicly Held IC-DISCs do not qualify for this tax rate benefit, that is only available to Individuals, and as Parent -Subsidiary structures the tax rates applicable to the Deduction and the Dividend would be basically offset.
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