Are you running a “pass-through” business like a proprietorship, S corporation, or partnership? Is it an “in-favor” business? If you’re answering “yes,” you qualify for tax reform’s new 20% deduction on qualified business income. (This is true whether you’re above, below, or in the expanded wage and property phase-in range.) BUT… if your business is an IRS-defined … [Read more...]
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S corporation health-insurance update
S corporation owners may remember that (for 2014, 2015, and 2016) the IRS allowed you to avoid the $100-per-day penalties on S corporation reimbursements for individually-purchased health insurance. But what about 2017 and 2018? What’s your health-insurance status now? The good news is that your 2017 and 2018 S corporation health-insurance treatment continues as before. And … [Read more...]
A deduction for making things (this could be for you!)
Hey. You may not think of yourself as making things but the tax code allows this deduction for making things you may not be thinking of. Why should you care? Because if Uncle Sam considers you to be making things you may qualify for a nice deduction… up to 9% of all income from qualifying activities. There’s no catch and no recapture associated with the deduction. It’s … [Read more...]
The latest on Health Savings Accounts (HSAs)
Since the Affordable Care Act (Obamacare) was enacted, Health Savings Accounts (HSAs) have become more popular than ever, particularly with small businesses. This should come as no surprise. The HSA has some great features including its exclusion from the Affordable Care Act 100-a-day penalty rules, tax-deductible contributions, tax deferred growth, and possible retirement … [Read more...]
Don’t be surprised by the related-party matching rule
Operating your business as a C corporation, S corporation, or LLC can have its advantages — like limited liability protection. But there are things you have to watch out for. Exhibit #1: The related-party matching rule If you’re not careful this rule will put your business on the cash method for deducting payments to related cash-method taxpayers. The bottom … [Read more...]