By Firm Staff
With regards to the recent Tax Reform it is unclear if Fringe benefits will be a good thing. In the Case of the S Corp it may or may not be if you own more than 2% of the company. Regardless if you benefit the Federal tax law does allow the cost of fringes benefits as an deductible expenses for your S corporation tax return.
However, Shareholders who owns more than 2%, may suffer additional taxes on some of the benefits because the tax code requires your corporation to put selected benefits on your W-2. The outcome is sometimes favorable and sometimes not.
The rule that cases this concern is the following:
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Spencer Accounting Group, LLC does not provide investment, tax, legal, or retirement advice or recommendations in these blogs. The information presented here is not specific to any individual's personal circumstances.
Keana Spencer is an Accountant, Entrepreneur, and Educator to her clients, with a strong passion. Keana has over 10 years of experience and through her practice, she is a source of knowledge and strategies to her clients.