If you own more than 2 percent of an S corporation and your company pay health care benefits there are laws that dictates your claim to a deduction for health insurance.
We call like to call these laws the three-step health-insurance procedure, and there are tax laws and rules that we must follow in order to Maximize your deduction claims.
You need to get this S corporation health-insurance thing right. there are laws that will prevent the S corporation from taking the tax deduction.
Book Your Business Consultation with us, we will explore various strategies to help keep more money in your pocket.
It’s common to consider making your S corporation a partner in your partnership: since it can save you self-employment taxes.
Does this affect your Section 199A deduction? It does.
Certain payments are not qualified business income (QBI) for the Section 199A deduction. The non-QBI payment rule applies whether the partner receives the payment as an individual or as pass-through income from an S corporation.
Keep the S corporation self-employment tax savings in mind when considering your partnership activity. It is possible that the self-employment tax savings can make the S-corporation-as-a-partner strategy well worth it. We have to look at your total tax and financial situation and align them with your goals to find out if this strategy will work for you.
You have an option if you want your Section 199A deduction (psssst it's an extra 20% deduction). We will be happy to explore that option with you. Take a look at our blog on Tax Strategies or book with us now.
If you own a condominium, cottage, cabin, lake or beach home, ski lodge, or similar property that you rent for an “average” rental period of seven days or less for the year, you have a property with unique tax attributes.
Seven days example. Say you have a beach home and you rent it 15 times during the year, for a total of 85 days. What is your average rental. Is it an average of seven days?
The right type of beach home or vacation cottage can produce great tax results when the average rental period is within our seven days example. But it’s tricky because when the average rental period is within our seven days example, the property is not a rental property as defined by the tax code. Instead, the property is a commercial hotel type property that you report on Schedule C of your tax return.
However, If you have a profit on the rental you likely will qualify for the 20% deduction, depending on your tax filing strategy.
The tax law has also imposed restriction on a loss of $20,000 for the year, in which you likely have only two ways to take advantage of this tax strategy.
Note the difference: As with prior law, with Section 179 expensing, you get no additional deductions. But with bonus depreciation, you can now change what you expense.
Contact us for Tax Planning so we can determine if this strategy is going to help you save money.
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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.