Do you structure your business as a sole-proprietor, partnership, S or C corporation? Do you have fewer than twenty employees? Then our new article makes “must” reading. Why? Because we’ll explain how new IRS regulations allow you to reimburse Medicare parts B and D to your Medicare-covered employees. If you want to learn how to comply with the law and avoid painful … [Read more...]
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Life Insurance Policy Loan—A Tax Nightmare
Do you have an insurance policy that has built up an internal cash value? Are you taking loans from your policy, or letting the policy ride with premiums being paid from the cash value? If the answers to these questions are “yes,” be very careful. You see, if you don’t handle things correctly, you can fall into the life insurance policy-loan trap. Allowing your life … [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...]
Tax reform hammers personal casualty loss deductions
Hurricanes. Floods. Wildfires. These and other disasters have sadly cost many lives and billions of dollars in property damage. If you have suffered property damage, we want to warn you that the Tax Cuts and Jobs Act placed a new limit on personal casualty loss deductions for the years 2018 to 2025. The changes in the law can have a huge impact on your ability to deduct … [Read more...]
Tax Time Bomb: Passive Foreign Investment Companies
Thinking about owning a passive foreign investment company (PFIC)? Perhaps through a (non-U.S.-owned) mutual fund? Our advice, in just one word, is… “don’t!” Why? Because the IRS punishes owners of PFICs with high tax-rates and extremely burdensome reporting requirements. You might think that all this doesn’t apply to you, but you may be in for a big, nasty surprise. You … [Read more...]