If you own more than 2 percent of an S corporation, you have to do three things to claim a deduction for your health insurance. Three things you must do 1. You must get the cost of the insurance on the S corporation’s books. 2. Your S corporation must include...
If you’re not good at paperwork, the corporate form of business is probably not for you. Let me tell you about a tax court case involving William H. Bruecher III. He learned a lesson by paying more than $27,000 in taxes on monies his corporation supposedly loaned to...
The tax-saving strategy of S-corporation as a partner does affect your Section 199A deduction. Guaranteed payments are not qualified business income (QBI) for the Section 199A deduction. The non-QBI guaranteed payment rule applies whether the partner receives the...
The Section 199A tax deduction is complicated, and many questions remain unanswered even after the IRS issued its proposed regulations on the provision. And to further complicate matters, there’s also a lot of misinformation out there about Section 199A. Below are...
Tell Me about the Cliff You have two opportunities to go off the cliff. The first opportunity applies to every passthrough business that pays no W-2 wages. Let’s say you are married filing a joint return, own no qualifying property, and pay no W-2 wages in your...
