By: Martin M. Shenkman, CPA, MBA, JD
If your corporation has set up an IC-DISC to capture the differential between ordinary income and low dividend tax rate, and you've engaged in comprehensive estate planning, be sure to have your estate planner, as well as your corporate attorney, review the contract between your corporation and DISC. If you have to broad a right turn the commission payments to the DISC on and off, there could be significant gift and estate tax implications if you try to gift DISC stock to heirs.
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