Corporate Tax Strategy Insights

Business Conventions & Seminars--Tax Considerations

You and your business likely benefit from attending business conventions and seminars. It’s essential to know which expenses you can deduct—and how to ensure they qualify. As a business owner, you might assume that if a seminar is “business related,” it’s automatically deductible. But that’s ... (continued)

Estimated Tax Penalty Revisited

The United States has a “pay as you go” tax system in which payments for income tax (and, where applicable, Social Security and Medicare taxes) must be made to the IRS throughout the year as income is earned, whether through withholding, by making estimated ... (continued)

Convert Your Partnership Into an S Corporation To Reduce Taxes!

Let’s say you’re considering converting your partnership into an S corporation. The reason might be to reduce exposure for you and the other owners to Social Security and Medicare taxes, which come in the form of the self-employment tax for partners. Specifically, each partner’s ... (continued)

You Still Can Claim ERC-Here's How!

During much of 2020 and 2021, you may have qualified for the Employee Retention Credit (ERC). With the ERC, you found (or could find) tax credits of up to $26,000 per employee. That’s a lot. With 10 employees, that’s $260,000. Key point. If you have not ... (continued)

ALERT-New FinCEN Regulations Coming Soon!

Do you own or advise a corporation, limited liability company (LLC), limited partnership, limited liability partnership, limited liability limited partnership, or business trust? Or are you planning to form one of these entities? If so, be alert. There’s a new federal filing requirement coming. Back ... (continued)

Pros & Cons of LLC's-Maybe Just Form a Corporation?

Limited liability companies (LLCs) are a popular choice of entity for small businesses and investment activities. LLC owners are called members. Single-member LLCs have one owner, although spouses who jointly own an LLC in a community property state can elect treatment as a single member ... (continued)

You Are Still Able to Claim the Emplyee Retention Credit (ERC)-Please Read ON!

With the Consolidated Appropriations Act, 2021, millions of small-business owners like you still qualify for the employee retention credit (ERC), thanks to three big changes: You can now obtain the ERC and the Paycheck Protection Program loan, but not ... (continued)

Can You Claim ERC as Owner of C or S Corporation

Members of the tax community struggle with the “solo corporate owner” qualification for the employee retention credit (ERC). The IRS in one of its answers to frequently asked questions explains the rule as follows: 59. Are wages paid by an employer to employees who are related ... (continued)

More On The Employer Retention Credit

First, say thanks to the Consolidated Appropriations Act, 2021 (CAA), enacted December 27, 2020. It opened the door (retroactively and going forward) for Paycheck Protection Program (PPP) participants to also claim the employee retention credit (ERC). Reminder. Tax credits are the best. They usually reduce ... (continued)

Vehicle Titled in Your Personal Name-Here’s How to Structure CORPORATE Deduction

If you operate your business as a corporation but own the business car personally, you have no vehicle deduction possibility without corporate reimbursement, because the Tax Cuts and Jobs Act does not allow employee business expenses for years 2018 through 2025.  Taxpayers Who Did This  The ... (continued)

New Law Retracts $100 -a-Day Penalty

Finally, the health insurance rules that apply to small businesses make more sense and allow some benefits. Beginning January 1, 2017, you can install a new qualified small employer health reimbursement arrangement (QSEHRA) and start helping your employees pay for their health insurance and other ... (continued)

3 Strategies to Avoid 1099 Reporting & Penalties

The easiest way to avoid the headaches and potential penalties caused by issuing 1099’s to independent contractors is to structure your activities to minimize the number you have to issue, and prepare in advance if you do have to issue them. Congress makes you ... (continued)

Unpaid Payroll Taxes?-Please Read This

If your business withholds taxes from its employees and does not pay them, your business and possibly yourself are exposed to substantial liabilities. The IRS trust fund recovery penalty can make you personally liable for the unpaid trust fund taxes for your business. Trust ... (continued)

Here’s a 2014 Business Vehicle Strategy That You Probably Were Not Aware Of

Did you buy a 2014 business vehicle in your personal name? To protect your Corporation’s deductions, read this briefing. Even though you may have purchased one or more vehicles in your name, you can still substantially reduce your income taxes with the legal utilization ... (continued)

How to Maximze Your 401(k) Deductions-S Corporations

A  Solo 401(k) plan is an excellent retirement and tax planning tool. To facilitate your understanding of how S Corporation income can be contributed to a 401(k) plan, you need to understand the following three basic rules. Only W-2 Salary can be used as ... (continued)

This is How To Reduce Taxes for S Corporation Owners

If you are operating as an S Corporation, your salary is a key element to an excellent tax reduction strategy. The lower your salary, the more you save in payroll taxes. However, if you set your salary too low, the IRS may, upon audit, step ... (continued)

Tax Strategies for Business-Long Term Care Insurance

Strategy for C Corporation Have your C Corporation provide company-paid qualified long-tern care coverage as an employee benefit for selected employees, such as yourself. This coverage is eligible for the same tax-advantaged treatment as a regular company-paid health insurance program. The result is the ... (continued)

How to Properly Structure Shareholder Loans to C Corporations

Shareholders often loan money to their corporation in order to keep the business operating. There are rules and regulations in the Internal Revenue Code (IRC) that must be adhered to in order for loans to be treated as such, and not an equity ... (continued)

Corporate Loans Are A Valuable Tool–Here’s How To Properly Structure Them

C Corporations owners have a double-taxation problem. Here’s why: Suppose your C Corporation has $10,000 of profits after paying your salary and other expenses. To move those funds to your personal account, you have to: pay the corporate tax on the income, and pay a dividend ... (continued)

Business Protection–Initial Considerations

The first consideration is structuring a sound asset protection plan is deciding which form of entity to operate your business. The possible choices include: General & limited Partnerships Sole Proprietorships Limited Liability Companies Corporations Trusts Each has different legal characteristics, tax attributes, an asset protection features. The right combination ... (continued)

Tax-Free Rental of Home to Your Corporation

How would like to get a tax deduction for your C or S Corporation, and NOT have to include the income on your personal tax return? Here’s a legal tax strategy to accomplish just that. Under IRC Section 280A you can rent your entire home to ... (continued)