Forgive my ignorance I’ve been wondering for a while and having found an answer online yet.
If a corporation made X amount of money in a year, they would be taxed on all money after expenses have been paid for.
There are those who would spend as much money on equipment as possible so they can accumulate assets with before taxed money so they have very few taxes to pay.
So I’m wondering can a corporation by stocks like ETF index funds, or SNP 500 with pre tax money, and would they be able to defer the tax until they sold it many years in the future ???
Maybe I’m asking a foolish question, I just have been wondering this for a while
Say for example
The corporation I own the majority of the shares in Makes 100k. Now I will pay myself a salary of 50k, and the the rest, or the majority of the money left from this year’s earning would just be used to buy stocks so my money grows with the market and I don’t have to pay tax on that yet.
Tell me if I’m crazy lol idk
