How entity type affects tax planning for owner-employees

Come tax time, owner-employees face a variety of distinctive tax planning challenges, depending on whether their business is structured as a partnership, limited liability company (LLC) or corporation. Whether you’re thinking about your 2016 filing or planning for 2017, it’s important to be aware of the challenges that apply to your particular situation. Partnerships and […]

Could captive insurance reduce health care costs and save your business taxes?

If your business offers health insurance benefits to employees, there’s a good chance you’ve seen a climb in premium costs in recent years — perhaps a dramatic one. To meet the challenge of rising costs, some employers are opting for a creative alternative to traditional health insurance known as “captive insurance.” A captive insurance company […]

3 midyear tax planning strategies for business

Tax reform has been a major topic of discussion in Washington, but it’s still unclear exactly what such legislation will include and whether it will be signed into law this year. However, the last major tax legislation that was signed into law — back in December of 2015 — still has a significant impact on […]

2 ways spouse-owned businesses can reduce their self-employment tax bill

If you own a profitable, unincorporated business with your spouse, you probably find the high self-employment (SE) tax bills burdensome. An unincorporated business in which both spouses are active is typically treated by the IRS as a partnership owned 50/50 by the spouses. (For simplicity, when we refer to “partnerships,” we’ll include in our definition […]

Your Business Survival Depends On It

There are many factors to look at these days when making solid business decisions. The baby boomer business owners are reaching retirement age and who will be their successors? The Pew Research Center indicates that the oldest of America’s baby boomer generation started turning 65 on January 1, 2011, at a rate of 10,000 people a […]

Expense Future Payments As Cash

Credit Card Charges   All charges made to your credit cards before year end to pay business expenses may be deducted as current year expenses, although the payments may be made in the following year. In addition, all checks written and dated in current year, but cashed in the future regarding current year tax related […]

Tax Form 8971 – If Missed Could Cost You BIG!

Beneficiaries Acquiring Property From Descendants   As our society continues to age we are new seeing estates beginning to distribute their assets. On Tax Form 8971, you will find the list of these distributions and this form could be delivered at any point during the year. Please don’t forget to forward this to your Tax Preparer!!! […]

Not All Losses Are Deductible Right Away

S Corporation or Limited Liability Company (LLC) losses The amount of losses from an S corporation or an LLC you can deduct is limited to your basis (your capital adjusted for earnings, drawls, etc.) in each entity.   Tax Tip: The above ­mentioned losses are temporarily suspended and not deductible.

What Really Is Reasonable Compensation?

Reasonable Compensation for Shareholders who work for the Corporation When a stockholder works for her/his own corporation, she or must be on the company payroll and paid a reasonable amount of salary for the services performed. The Government Accountability Office has reported many employment tax abuses with respect to S corporation shareholders who worked for the […]