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You may have wondered why an S corporation can pay for or reimburse a solo owner-employee’s individually purchased health insurance without worrying about the $100-a-day penalty.   The answer is that the S corporation’s payments of the solo shareholder-employee’s individual health insurance premiums are exempt from the...

  Your ownership of a pass-through trade or business can generate a Section 199A tax deduction of up to 20 percent of your qualified business income (QBI).   The C corporation does not generate this deduction, but the proprietorship, partnership, S corporation, and certain trusts, estates, and rental...

Alimony Payments For divorce agreements executed or modified after December 31, 2018, alimony is tax-free to the recipient and no longer tax deductible for the payor. 199A Deduction Sole Proprietorships, partnerships, and S Corporations may be eligible for the new 20% deduction of qualified business income Itemized Miscellaneous Deductions Itemized...

For most small businesses and the self-employed, the 20 percent tax deduction from new tax code Section 199A is the most valuable tax deduction to come out of the Tax Cuts and Jobs Act tax reform.   The Section 199A tax deduction is complicated, and many questions...

The Tax Cuts and Jobs Act (TCJA) tax reform added an amazing limit on larger business losses that can attack you where it hurts—right in your cash flow.   And this new law works in some unusual ways that can tax you even when you have no...

  Tax reform made a lot of good changes in the tax law for the small-business owner.   But the changes to the net operating loss (NOL) deduction rules are not in the good-changes category. They are designed to hurt you and put money in the IRS’s pocket.   Now,...

Starting now, this year (2018), you have to consider your Section 199A deduction in your year-end tax planning. If you don’t, you could end up with a big fat $0 for your deduction amount.   If your taxable income is above $157,500 (or $315,000 on a joint...

When you get busy with your business, it’s easy to forget about your retirement accounts and medical coverages and plans. But year-end is approaching, and now’s the time to take action.   I’ve included below six action steps for 2018 that can help you reduce your taxes...