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...]
Fringe Benefits
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Yes, Tax Reform Did Kill Prospect and Client Meal Deductions
Want to take a client or a business prospect to lunch at a trendy restaurant? Go right ahead and enjoy the meal. Just don’t expect Uncle Sam to help pay for it. You see, thanks to recent so-called business-friendly tax reform, you can no longer deduct business meals. Those write-offs are dead and gone. Oh. I know. Some continuing education courses teach that business … [Read more...]
Tax Reform Terminates Business Entertainment Deductions
Alert! The recently passed “business-friendly” tax reform package just completely killed the 50% business deduction for “directly related and associated entertainment.” That’s right. Last year you could take a prospect or client to a business dinner following the theater or a ballgame and write off 50% of the cost of the dinner and the theater or ballgame. (You just had to … [Read more...]
Tax Reform: Entertainment Deductions That Survived
First, the bad news: As we explained previously, tax reform wiped out 50 percent business-entertainment deductions. Which means you can no longer write off “directly related or associated” business-entertainment expenses. In other words, you can wave good-bye to deductible business meals, ballgames, etc., with clients and prospects. Now, for the good news: All is not … [Read more...]
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...]