Traders who have C-Corp, how do you handle accumulated earning tax (AET)?

H

horizon

Hello,
Any traders in here set up a C-Corp for their trading business? If yes, would you please share your thought about the Accumulated Earning Tax (AET)? Do you keep paying yourself dividend to stay under $250,000 threshold? Or traders are excluded from AET? I already consulted with my CPA and my CPA said do not worry about AET. So I would like to hear from Elitetrader folks.

Others who want to Read about AET and C- Corp:
https://greentradertax.com/how-to-decide-if-a-c-corp-is-right-for-your-trading-business/
 
horizon said:
Hello,
Any traders in here set up a C-Corp for their trading business? If yes, would you please share your thought about the Accumulated Earning Tax (AET)? Do you keep paying yourself dividend to stay under $250,000 threshold? Or traders are excluded from AET? I already consulted with my CPA and my CPA said do not worry about AET. So I would like to hear from Elitetrader folks.

Others who want to Read about AET and C- Corp:
https://greentradertax.com/how-to-decide-if-a-c-corp-is-right-for-your-trading-business/
More...

In my manufacturing firm this comes up from time to time (as I don’t take dividends). It becomes an issue when you are audited. You can try to make the argument that you are reinvesting the gains in the business and that will often fly. Otherwise you might have to take the div and immediately loan the money back to the company to keep the AUM growing.
 
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