Blog Posts
Getting Around the New Law That Impairs the Stretch IRA Strategy
Last December, the Setting Every Community Up for Retirement Enhancement (SECURE) Act became law. The SECURE Act was intended mainly to expand opportunities for individuals to increase their retirement savings and to simplify the administration...
Don’t Let the IRS Set Your S Corporation Salary
You likely formed an S corporation to save on self-employment taxes. If so, is your S corporation salary • nonexistent? • too low? • too high? • just right? Getting the S corporation salary right is important. First, if it’s too low and you get...
Using Whole or Partial Rooms for Your Home Office
With the COVID-19 pandemic still going on, you may be spending more time working from your home office. You may have taken some extra rooms for your business use. Is that okay? Section 280A(c) states that you may claim a home office based on...
The Latest on Payroll Tax Deferral
If you have employees, you must withhold their 6.2 percent share of the Social Security tax from their wages up to an annual wage ceiling ($137,700 for 2020). You must pay the money to the IRS along with your matching 6.2 percent employer share...
Partnerships
What You Need to Know About Partnerships A partnership is the relationship existing between two or more persons who join together to carry on a trade or business. Each person contributes money, property, labor, or skill and expects to share in...
Fringe Benefits
Tax Treatment of Fringe Benefits The term “fringe benefit” refers to any benefit provided to an employee that is in addition to money. All benefits provided to an employee are taxable unless the law specifically excludes or defers tax on the...
The Importance of Keeping a Mileage Log
What is the unpardonable sin in an IRS audit? Suppose you just received a letter from the IRS telling you that you are the subject of an IRS audit. What one record receives special attention? What one record can create a nightmare for you? What one record makes the...
All About Limited Liability Companies
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...
Seven Things to Know Before You Take Out an EIDL
SBA EIDLs can be a great source of low-interest funding for businesses struggling with the economic impact of the COVID-19 pandemic. Unlike PPPs, EIDLs are not forgivable—borrowers have to pay them back. But they have a low 3.75 percent...
PPP Update: Two New Rules for Owners of S and C Corporations
The PPP rules are still changing. During the past month, the SBA issued a new set of frequently asked questions (FAQs) and a new interim final rule, which in combination create the following good news for the PPP: • More forgiveness. The $20,833 cap on corporate...