Is IC-DISC for you?
August 18th, 2011 by Tim Schlotterer
Are a U.S. taxpayer that exports goods and certain services to locations outside the United States? If so, you should consider setting up an Interest Charge Domestic International Sales Corporation (IC-DISC).
What is the Benefit?
- A permanent tax savings (up to a 20%) for qualifying U.S. exports.
- Increased liquidity for the shareholders or business.
- Ability to leverage cost of capital.
- Opportunity to provide an incentive to key personnel.
Does an IC-DISC apply to you?
- Does your company currently have taxable income?
- Does your company export property to locations outside the U.S.?
- Does your company use overseas distribution?
- Is the export activity from sales, leases, or rental of property?
- Is the export property held for sale/lease for direct use outside the U.S. for 365 days or more?
- Is 50% or less of the fair market value of the export property foreign content?
- In addition to export property sales, does your company provide engineering or architectural services for construction projects located outside the U.S.?
If you answered “yes” to any of the above, let’s talk. I am happy talk with you regarding the advantages of IC-DISC.