WHO HAS THE ABILITY TO USE TAX CREDITS
INCOME CHARACTERIZATION
|
TYPE OF INVESTOR |
ACTIVE INCOME |
PORTFOLIO INCOME |
PASSIVE INCOME |
|
INDIVIDUAL |
Yes |
Yes |
Yes |
|
TRUST |
No |
No |
Yes* |
|
ESTATE |
No |
No |
Yes |
|
CORPORATION |
Yes*** |
Yes** |
Yes |
|
TAX-EXEMPT |
No |
No |
Yes |
*The TAX CREDITS can be used to offset regular tax to the extent that passive income is taxed at the trust level.
**The TAX CREDITS can be used to offset portfolio income tax if the corporation is widely held.
***The TAX CREDITS can be used to offset regular income tax by "S" corporations and personal service corporations by passing through the Tax Credits to the individual shareholders.