For owners of C or S corporations, determining “reasonable compensation” is a critical issue. If the IRS believes an owner’s compensation is unreasonably high or low, it may disallow certain
Your business can set up an educational assistance plan that can give each eligible employee up to $5,250 in annual federal-income-tax-free and federal-payroll-tax-free benefits. These tax-favored plans are called Section 127
Suppose you’re thinking about setting up a retirement plan for yourself and your employees. However, the financial commitment and administrative burdens involved are causing you concern. There are a couple
With summer quickly approaching, your small business might be considering hiring young people. If your children are also looking to earn some extra money, why not put them on the
Some tax sins are much worse than others. For example, failing to pay over federal income and employment taxes that have been withheld from employees’ paychecks. In this situation, the
For federal income tax purposes, the general rule is that rental real estate losses are passive activity losses (PALs). An individual taxpayer can generally deduct PALs only to the extent
When it’s time to consider your business’s future, succession planning can protect your legacy and successfully set up the next generation of leaders or owners. Exploring different succession strategies is
Are you starting a business with partners and deciding on the right entity? For your new venture, an S corporation may be the best choice. One Benefit Of An S Corporation One
Businesses were able to claim a tax deduction for most business-related interest expense prior to the enactment of the Tax Cuts and Jobs Act (TCJA). The TCJA created Section 163(j),
As a business owner, you may be eligible to claim home office tax deductions that will reduce your taxable income. However, it’s important to understand the IRS rules to help
