Are distributions paid or distributions credited to shareholders, partners, or members who are insurance companies subject to withholding under Georgia Code Section 48-7-129?
• If the insurance company pays a tax to Georgia on its premium income, it is not subject to Georgia income tax and the withholding requirements under Georgia Code Section 48-7-129. • A shareholder’s, partner’s, or member’s distributions that were paid or credited total more than $1,000.00 per year, but its I.R.C. Section 179 deduction will make its Georgia taxable income less than this amount. Is withholding required? • Yes. Since the I.R.C. Section 179 deduction may be limited at the Federal level, withholding is required before the I.R.C. Section 179 deduction. • Subsection (c) of Georgia Code Section 48-7-24 provides an exemption from Georgia income taxation for a nonresident member who receives income from a resident limited partnership or similar nontaxable entity which derives income exclusively from buying, selling, dealing in, and holding securities on its own behalf and not as a broker.
Related Questions
- Are distributions paid or distributions credited to shareholders, partners, or members who are insurance companies subject to withholding under Georgia Code Section 48-7-129?
- Are distributions paid or distributions credited to shareholders, partners, or members who are exempt organizations subject to withholding?
- When are the partners, shareholders or members responsible for paying their own tax instead of being subject to withholding?
