Good news! The IRS has finalized its regulations of Section 199A of the tax code. Which means you may be eligible for a tax deduction worth up to 20-percent of your qualified business income (QBI)! With the issuance of this final version of the rules, Uncle Sam has provided a clear definition of your qualified business income so you can now file your tax return standing on … [Read more...]
Fringe Benefits
Sorted by Date
IRS updates defined wages for new Section 199A tax deductions
If you want to take advantage of the new 20-percent tax deductions under tax code Section 199A, you need to follow certain important IRS rules. For example, you’ll need to calculate your business’s W-2 wages if they meet certain important criteria. What exactly are they? How can you comply with the law and stay out of the IRS’s gun sights? You’ll find out when you read … [Read more...]
Update on claiming business-deductions for work-related education
Continuous education can be extremely valuable for you and your employees. But when it comes to deducting the cost of continuous work-related education, the Tax Cuts and Jobs Act has proven rather unhelpful. In fact, the law has made some unpleasant changes you really need to know about. You’ll get a tremendous amount of timely, important information when you read my new … [Read more...]
The IRS allows client and prospect business-meal deductions
Here’s good news from the IRS. You read that right. Good news! You see, in Notice 2018-76 the IRS states that client and prospect business meals continue as tax deductions under the Tax Cuts and Jobs Act. As we’ve mentioned in past issues of the Tax Reduction Letter, the Tax Cuts and Jobs Act eliminated entertainment deductions. But thanks to Notice 2018-76, that’s … [Read more...]
S corp. health insurance premiums and “reasonable compensation”
If you’re running your business as an S corporation you know you have to pay yourself what the IRS considers to be “reasonable compensation.” But what about your health insurance premiums? If your corporation pays those premiums does it have to change your salary to meet “reasonable compensation” standards? You’ll get straight answers to these important questions when you … [Read more...]