Terrible Tommy
New member
Will the government be required to pay taxes on any profit made from GM.
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Will the profit From GM be taxable income for the government.?
- Thread starter Terrible Tommy
- Start date
little bear
New member
It does not work that way but GM would need to pay taxes on any profit it made reducing the amount of funds the stock holders would receive. But is that the question you were asking were you asking will the government need to pay taxes on the profits made from the stocks they hold in GM. If indeed that is the question. You would have to rewrite your question as I do not know the answer to that.
No, primarily because NO shareholders in a corporation are required to pay taxes on the corporation's taxable income.
Taxes might reduce the amount of money available for a dividend, and they might make less money available for other things, but unless GM is operated as a partnership and not a coroporation (which it's not), the tax burden will be borne by the corporation directly, only to be passed on to other parties (in the form of reduced earnings & profits available for other uses).
In the case of GM for year 2008, it is likely that they will pay no income taxes at all because they showed no profits for the year after all allowable deductions. GM will have a net operating loss, which they will be able to carry forward and apply to later, hopefully more profitable years.
Taxes might reduce the amount of money available for a dividend, and they might make less money available for other things, but unless GM is operated as a partnership and not a coroporation (which it's not), the tax burden will be borne by the corporation directly, only to be passed on to other parties (in the form of reduced earnings & profits available for other uses).
In the case of GM for year 2008, it is likely that they will pay no income taxes at all because they showed no profits for the year after all allowable deductions. GM will have a net operating loss, which they will be able to carry forward and apply to later, hopefully more profitable years.
Information Police
New member
GM will be required to pay taxes from any profits they may see.
Although, as soon as GM becomes profitable it will be sold.
Although, as soon as GM becomes profitable it will be sold.