An Update: 2023 Health Insurance for S-Corporation Owners

If you operate your business as an S-Corporation, you will continue to enjoy good news in 2023 regarding your health insurance. In this article, we give you the ins and outs of what you need to do with your S-Corporation to ensure your health insurance deductions and also avoid the $100-a-day penalties for violating the rules of the Affordable Care Act. Good News The good news is that the old rules still apply. Step 1: Get the cost of the health insurance on the S-Corporationʼs books. You can do this in one of two ways: Direct Payment: The S-Corporation can make the premium payments directly to the insurance company for the accident ...

$80 Billion to the IRS: What It Means for You

For the business owner and tax practitioner, the most important part of the Inﬂation Reduction Act of 2022 was not the tax credit for ﬂashy new electric cars. It was something much more basic: a long-term budget commitment to help the struggling, failing IRS. ...the new funding will impact all taxpayers. The average taxpayer should beneﬁt because the IRS will be able to upgrade its operations and improve its woeful levels of service The Inﬂation Reduction Act invests an additional $80 billion in the IRS over the next 10 years. This is the biggest budget increase the IRS has ever received. To put this in perspective, it is ...

2022 Last-Minute Year-End Retirement Deductions

The end of the year is near, so this week I'll speak to your Year-End Retirement Deductions since your retirement is one year closer as your clock continues to tick. The good news is that you still have time before December 31 to take steps that will help you fund the retirement you desire. You might ﬁnd several thousand dollars (and maybe much more) in your pocket by taking the actions in this article pertaining to your Year-End Retirement Deductions. But you’ll need to act now to get the cash. Big Picture Here are the four opportunities we explain in this article: Establish your 2022 retirement plan before December 31 so ...

Defeat the $10,000 SALT Cap with the PTE Tax (Part 2)

As I explained in Part 1 last week, a majority of states now allow pass-through entity (PTE) owners to get around the federal $10,000 state and local tax (SALT) deduction cap on individual taxpayers by having their PTE pay state income tax on its income at the entity level. Under this regime, the PTE deducts the state income tax as a federal business deduction, which is not subject to the $10,000 SALT cap. The PTE owners get either a state tax credit for the tax payment or a reduction in their PTE income for state income tax purposes. Either way, they end up with a full (or near full) deduction on their federal income tax returns for the state ...

Tax Savings for Married Taxpayers Claiming Section 179 Deductions

If you are married, you need to know three special rules that can beneﬁt your Section 179 deductions: The Section 179 business income limit includes W-2 income earned by both you and your spouse. Section 179 expensing treats you and your spouse as one taxpayer. If you and your spouse file separate returns, you need to make an overt election of how you are going to share your Section 179 deductions. The W-2 For Section 179, among other purposes, employees are engaged in the active conduct of the trade or business of their employment. Thus, wages, salaries, tips, and other compensation derived by a taxpayer as an employee count as ...