Best use of one time funds

[JavaMan]

What is the name of your state (only U.S. law)?

Connecticut/New York

I have some property in NY state which may provide a substantial income as a result of mineral rights. There is a potential annual income from this same process which would be more manageable that the bonus. If taken as income this will result in a significant tax bill, which I would like to minimize.

Is it possible to have this income paid to a corporation which would then re-invest that money as well as pay a small salary to my spouse or myself? I believe I would first have to 'sell' my mineral rights ot my corporation. The corporation, I think, would then have the ability to invest its income from the mineral rights in other real assets and not pay income taxes on that money invested.

I will clearly need an attorney to make all this happen. I am at this point checking the concept.

[FlyingRon]

Corporations pay tax too.

[JavaMan]

Isn't it true however that corporations pay taxes after expenses or taxes on profits?

If this is true couldn't the corporation accumulate assets which may later generate income for itself, pay employess etc...

The net effect would be to minimize the shock of a large tax bill on the one time payment.

The statement "Corporations pay taxes too." is actually less than minimally helpful. I was really looking for constructive ideas.

[LdiJ]

Originally Posted by JavaMan

Isn't it true however that corporations pay taxes after expenses or taxes on profits?

If this is true couldn't the corporation accumulate assets which may later generate income for itself, pay employess etc...

The net effect would be to minimize the shock of a large tax bill on the one time payment.

The statement "Corporations pay taxes too." is actually less than minimally helpful. I was really looking for constructive ideas.

A corporation owning the rights vs you owning the rights is not going to minimize your tax bill. With a C corp you have the issue of double taxation, and with an S corp the income flows through to your personal return anyway.