I have a question relating S-Corporation distributions. If you have an S Corp in Tennessee and have distributions, does the owner have to pay the 6.5% excise tax and the 6% individual "Hall" income tax?======>>it depends; the Hall tax applies to interest / dividend income from corporations. Taxable forms of interest include interest on bonds issued by corporations.also hall tax is imposed to people who maintain their legal residence in Tennessee, including part-year residents who live in the state at least six months of the year.S corps in TN need to pay excise taxes.
Is there a credit on the excise tax if you pay the individual hall income tax or vice versa? Its all double taxation to me. Basically, what would the tax liability, if your the owner of a S Corporation, and have distributions (not salary) of say $10,000 for a Tennessee resident?
====>> iguess you need to contact the TN rev dept for more accurate info in detail.
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