The recently passed tax-reform law has a lot to say about fringe benefits for shareholder-employees who own more than 2-percent of their S corporations. The good news? Federal tax law lets you treat the cost of fringe benefits as deductible expenses for your S corporation. The bad news? If you’re a more than 2-percent shareholder, you may have to pay additional taxes … [Read more...]
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How to prove travel expenses after tax reform
As you may know, recent tax-reform rules have left travel expense deductions pretty much intact. This means your travel meals are still tax deductible (subject to the 50-percent cut), and there have been no changes to the rules that govern your other travel expense deductions. What also hasn’t changed is the IRS's requirement that you back up all your travel expenses with … [Read more...]
Tax Reform Increases the Tax Benefits of Employing Your Child
Sure. Tax reform has had its downsides, but it also provides some substantial money-saving benefits for business owners. For example, if you (or you and your spouse) own a business, your children can dramatically increase tax benefits for both you and them. That’s a win/win situation too good to pass up! Want to find out how to put a totally legal “hire your child” strategy … [Read more...]
Tax reform punishes W-2 employees — Get even!
The Tax Cuts and Jobs Act that passed recently, created winners and losers. One big loser is the W-2 employee. Why? Because thanks to the new law, W-2 employees’ business expenses are no longer deductible! That’s right. W-2 employees get a zero deduction for legitimate expenses. Which has them shouting, “I’m mad as hell and I’m not taking it any more!” What can you … [Read more...]
Tax reform’s penalty tax on transportation fringe benefits
Remember the good old days… a few months ago? Back then, when you provided your employees with transportation fringe benefits, you’d get a nice tax deduction. No more. Thanks to the new Tax Cuts and Jobs Act, employers now get stuck with a penalty-tax when they grant employees certain qualified tax-free transportation fringe benefits. Want to find out what the new law … [Read more...]