Can you claim travel expenses when you run your business as an S corporation? There are a few things that you should keep in mind if you are considering doing this. You are an employee of your S corporation, and this entity is separate from you. Thus, you can acquire expenses and be reimbursed for…
S Corporations
What Are the Tax Benefits of Employing Your Children?
Can employing your children at your business benefit you when it comes time to file your taxes? Thanks to recent changes in tax law, you can’t claim your child as a personal exemption anymore. However, it is still possible to enjoy tax benefits from employing your children. Here’s what you need to know about taking…
Understanding How the Home Office Deduction Applies to Your S Corporation
If you have gotten used to using the home office deduction, you may be wondering if you can still use it when you have an S corporation. In other words, how can you be sure that the IRS will still let you take advantage of this deduction? Here’s a quick look at some methods that…
When and How to Deduct Medicare as a Business Expense
Medicare health insurance may be less expensive than most private plans, but the premiums still add up to a considerable sum each year. This is especially true for high-income taxpayers and married couples who are both paying Medicare premiums. However, a CPA may be able to help you deduct those premiums as a business expense….
IRS Issues Final Section 199A Regulations and Defines QBI
The new IRS tax code Section 199A may affect you if you own a pass-through trade or business, including a proprietorship, partnership, or S corporation. It implements the new qualified business income (QBI) deduction, which may enable you to deduct up to 20 percent. QBI and Eligibility Essentially, qualified business income is taxable net income….
What You Need to Know about Section 199A
One of the most notable tax deductions introduced by the Tax Cuts and Jobs Act of 2017 is the 20 percent deduction included in Section 199A. Although the IRS has already released its official regulations, the complexity of the tax deduction means that many people are still confused about what it means. Here are the…
Are Expenses Deductible for an S Corporation?
Here’s a common scenario: You’ve decided to dissolve your corporation, and then you suddenly realize that you’ve got some additional expenses for that corporation. Since the corporation doesn’t exist anymore, you pay them yourself. Is this a tax-deductible expense for you? In fact, it isn’t. Since you didn’t incur the expenses through a corporation that…
Tax Reform Changes Affecting Partnerships and LLCs and Their Owners
The Tax Cuts and Jobs Act (TCJA) includes several changes that affect partnerships and their partners, and LLCs that are treated as partnerships for tax purposes and their members. Most of the changes are good news. Here are some highlights: Technical Termination Rule Repealed (Good) Under prior law, a partnership or an LLC treated as…
S Corporation Fringe Benefits after the Recent Tax Reform
Fringe benefits are usually a good thing—but there’s a catch when you own more than 2 percent of an S corporation. The good news? Federal tax law allows the cost of these fringes as deductible expenses for your S corporation. The bad news? You, the shareholder-employee who owns more than 2 percent, may suffer additional…
Tax Reform Creates Desire for the C Corporation
When you first see that 21 percent tax rate for the C corporation, you have to think that this could be the choice of entity for your business operation. Further, when you find yourself in the out-of-favor group for the 20 percent deduction authorized by new tax code Section 199A, you naturally gravitate to thinking…