Are you subject to the self-employment tax? The answer is “no” if your activity doesn’t rise to the level of a trade or business. And if it doesn’t, you could put a lot more money in your pocket. That’s because you won’t have to pay the nasty self-employment tax. If you want to learn how the IRS and the courts determine whether your activity is a trade or business (or … [Read more...]
Self-employment Tax
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How to audit-proof your S corporation salary
If you’re the owner of an S corporation, you can save a lot of money on self-employment taxes. How? By paying yourself a low salary and taking the remaining profits as distributions which are not subject to the self-employment tax. But as is often the case with the tax code, the devil is in the details. Which is why I urge you to read my must-read new article titled Tax … [Read more...]
How to manage your S Corporation fringe benefit problem
It’s a fact. Your S Corporation may not give you the tax-free fringe benefits you want. In the good old days, the S Corporation avoided double taxation, reduced self-employment taxes, and also gave you a bunch of fringe benefits. Well, sadly, the good old days are long gone (since 1982). Which means that when the S Corporation is your 2011 business entity of choice, you have … [Read more...]
Get your personal economic stimulus package
Did you know that “The Small Business Jobs Act of 2010” spends $12 BILLION on small businesses? Are you getting your fair share of this money meant to stimulate the economy? To learn how the one-owner business can cash in on The Small Business Jobs Act of 2010, read our brand new article titled New Law: Another Small-Business Economic Stimulus Package for You. Three ways our … [Read more...]