In our previous blog, we discussed the issues with paying no officer wages. Your S Corporation is properly paying officer wages. Is the amount reasonable? The IRS is hitting small businesses for paying unreasonably low officer wages. Continue reading…
2nd Annual Brighton Area Success and Achievement Workshop Series
Chris Kostoff has been tremendous help to me! Due to his help, my business has done exceptionally well. I highly recommend anybody interested on improving themselves for the main purpose of growing a business to consider this workshop series. You will not be disappointed. Continue reading…
Questions on the New "fiscal cliff" Regulations
Questions: Please clarify the “new” “fiscal cliff” income tax regulations regarding:
Taxes on capital gains and dividends will also rise to 20 percent. Is the rise progressive. i.e. only applies to unearned income over $500,000 ?
Taxes will also rise by five percentage points for large estates, over what amount ?
Married couples who earn $300,000 or more will face caps on itemized deductions and exemptions. Please clarify Continue reading…
IRS Audit Risk – Reporting No Wages to S Corporation Officer
An S Corporation is a popular entity structure for small businesses. Many tax practitioners help small business set up S Corporations to reduce self-employment tax. This strategy can back fire if the corporation reports unreasonably low or no compensation to the officers/owners. This is an audit risk as the IRS is cracking down on business for not reporting officer wages.
Continue reading…
Tax Help Question – Dependant Exemption for Stillborn Child
Question: We lost our baby at birth. Can we claim any child deductions for the year? Continue reading…
Tax Question – Issuing MISC-1099 to a LLC
Question: Do I need to issue a 1099 MISC for services paid to a LLC? Continue reading…
Tax Help Question – Unfunded Trust Tax Return
Question: My client has an unfunded trust established in 1999. A bank account was originally opened up for the trust but the bank account was opened up under her late husbands social security number. The bank has changed the identification number to the tax id of the trust. The IRS has now sent the client a letter requesting all back trust returns. Does a trust tax return need to be filed?
Tax Question – Medical Expense Deduction
Question: If I were to pay a medical bill today via credit card but not actually pay the credit bill until next year… Would that be deductible this year or next? Continue reading…
Quote of the Month – December 2012
When asking yourself questions such as “What is my purpose?” or “What is the meaning of my life?”, it is more important to live the question than getting an answer to the question. Deepak Chopra
Tax Question – Theft Loss due to Ponzi Scheme
Question: I’ve got a tax question from one of my clients. They have a loss from a ponzi scheme, but it was in an IRA. I was unable to find something on IRS website specific to this situation, but a regular investment would be treated as a theft loss. I’m thinking the IRA would also be handled the same way since it was a theft too. Have you run across anything like this? Continue reading…