What the heck is the pesky little PCORI fee you have to pay and why should you care? Here’s the short answer… If you’ve established a Health Reimbursement Arrangement (HRA) for your employees and/or your spouse, you’ve got to pay the small PCORI fee to Uncle Sam. (More details below.) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ A Quick Reminder.HRAs that you likely have come … [Read more...]
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TCJA: Don’t Lose Out When Corp. Vehicle Is in Your Personal Name
Do you operate your business as an S or C corporation? Do you drive a vehicle for business purposes that’s registered in your own name? Then watch out! You see, the Tax Cuts and Jobs Act (TCJA) changed the rules for tax years 2018 to 2025. These changes in the tax law deny 1040 employee business-expense deductions when you use a personal vehicle for corporate … [Read more...]
PPP Update: Two New Rules for Owners of S and C Corporations
Here’s good news for S and C corporation owner-employees. During the past month, the Small Business Administration (SBA) issued: A new set of frequently asked questions (FAQs)A new interim final rule concerning the Payroll Protection Program (PPP) Taken together, these rules provide S and C corporations with significant benefits. What are they? How can you take … [Read more...]
Case Study: Trade-In on a New SUV—Reimbursement by Corporation
Meet Joyce. She just decided to trade in her three-year-old vehicle for a shiny new SUV. Sounds like a straightforward transaction, doesn’t it? … but it isn’t! You see, Joyce operates her business as an S corporation and wants the corporation to reimburse her for depreciation and even bonus depreciation. That’s when things get tricky. You see, the Tax Cuts and … [Read more...]
Four PPP Forgiveness Answers for S Corporation Owner-Employees
The IRS often spells out its laws and rules in minute detail. But not so much when it comes to the SBA which governs the Payroll Protection Program (PPP). That’s why S corporation owners are confused, and have important questions about the rules that apply to their businesses. Well, in this issue of the Tax Reduction Letter, we’ll provide straight answers to questions … [Read more...]