When it comes to the home-office deduction, sole proprietors have it easy. All they have to do is deduct home-office expenses on Schedule C. But what about folks who operate their businesses as S corporations? Can they also take advantage of the home-office deduction? The answer is a resounding “yes!” but you have to know how to play the game. We’ll explain how to come … [Read more...]
Employees
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Create an employee-spouse “105-HRA”
It’s a fact… The Affordable Care Act (Obamacare) doesn’t apply to a business that has only one employee. That’s good news. Your spouse can benefit from what I call a “105-HRA” (Health Reimbursement Arrangement). When you design it for your spouse, the plan reimburses him/her for family medical expenses. The reimbursements are business-expense deductible on your tax … [Read more...]
SEP or 401(k); how to retire early (and in comfort!)
If you want a carefree (and scarefree) retirement, now is the time to act. Start by paying yourself first. You work hard and deserve it. Next, take advantage of a SEP or 401(k) retirement plan. The tax code lets you sock away your “contributions” in a tax-deferred plan that lets your money compound over the years tax free. (You pay tax when you withdraw funds years … [Read more...]
New tax-deductible, penalty-free health plans for small businesses
Here’s good news for small businesses! Starting on January 1, 2017, you can establish a new “Qualified Small-employer Health Reimbursement Arrangement” (QSEHRA). The QSEHRA was created to help small-business owners help their employees pay for their health insurance and other medical costs. And without worries about the per-employee, $100-per-day penalty. (That’s $36,500 … [Read more...]
New law erases $100-per-day penalty!
Are you one of those small-business owners who stopped reimbursing (or paying for) your employees individually-purchased health insurance? Did you simply add the cost of that insurance to your employees W-2s? If you did, you were out of compliance with the Affordable Care Act and were subject to a $100-per-day penalty of up to $36,500 per-employee, per-year. Well, here’s … [Read more...]