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...]
Section 105 medical plan
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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...]
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...]
How to deduct the cost of special needs education
If your child is attending a special needs school, you’re facing some serious financial challenges. But Uncle Sam can offer you some help. You see, tax law lets you deduct tuition, medical expenses, and more. The only catch? You need to know which expenses qualify and the right way to deduct them. We’ll provide all the necessary information when you read my new … [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...]