An S-Corp is a popular structure to use for a small business. However, despite having many positive features, an S-Corp is a highly inflexible structure with many limitations. One such limitation is the way in which income or loss can be allocated to the shareholders.
Author Archives: Steve Wagner
A taxpayer is generally allowed to deduct the expenses attributable to running a home office provided the space is used exclusively for that purpose. The rules permit a deduction for all the expenses attributable to running the household, including depreciation, … Continued
The IRS has alerted tax preparers that, in addition to a phishing scam involving an email asking preparers to update their e-services information (TAXDAY, 2015/11/25, I.3 ), some preparers are also receiving scam phone calls attempting to capture usernames and … Continued
In spite of legislative changes and political hype, the “marriage penalty” that has existed in the tax laws is far from gone. A “marriage penalty” still exists in several areas of the tax law. Recent tax legislation made the standard … Continued
The S corporation has been used by small business owners to avoid payroll taxes, and the IRS knows it. In fact, there is a compliance initiative underway to find as many of those abusive situations as possible and assess appropriate … Continued
Tax rules regarding the home office deduction have changed a lot over the years. The law allows consultants, salespeople, and other self-employed workers to deduct home office expenses. So — are you permitted to deduct home office expenses if you … Continued
CHOOSING THE RIGHT TYPE OF BUSINESS ENTITY IS AN IMPORTANT DECISION If you are forming a small business, you face several choices: Sole Proprietorship, Partnership, C-corporation, S-corporation, Limited Liability Partnership and Limited Liability Company. Here are the basics. When you … Continued