By month: September 2017
You can pay your child to work in your business and get paid for paying your child. Yeah, we know. You think this sounds too good to be true, but it’s true. For how the government pays you and why this works, read this article.
A business owner accumulates earnings in an S corporation and takes no distributions or salary. The business owner then retires and wants to draw the funds out tax-free over multiple years. Are there any issues with this strategy?
The Boston Bruins deducted 100 percent of their meal expenses for employees who traveled out of town for the away games. The IRS challenged that 100 percent and lost. One big deal with the Bruins’ win is that it is precedent-setting, meaning that the Boston Bruins may have created a road map for you that could lead to more 100 percent business meal–expense deductions (versus the usual 50 percent allowance for business meals).
If you’re like millions of taxpayers, just the thought of an IRS tax audit has you shaking in your boots. Luckily, you came across this article. In the next few moments, we will put those fears to rest as we show you how to keep all your rightful tax deductions.
If you operate your business as an S corporation and you take advantage of the benefits you receive by having an office in your home, you probably want an easy and audit-proof way to make the reimbursement request. You find that in this article.
The related-party matching rule places your business on the cash method for deducting payments to related cash-method payees. You need to know this rule to avoid unexpected tax results. Also, you need to know how the different ownership thresholds apply because one share of stock could make you a related party. Indirect relationships expand the reach of the rule and can create additional surprises.
Having a business or activity operated as a partnership means extra tax return filings and compliance headaches. But you might qualify to elect out of partnership treatment. Here, we discuss the two elections available, when you qualify or not, and the impact of making an escape election.
When you and the IRS disagree about an item on your tax return, you need authority on your side to either win your case or avoid a penalty. Court decisions can be a valuable authority to convince the IRS that you are right. We’ll discuss the various types of court decisions and which ones can help you the most.
You may be able to claim the child and dependent care credit for the cost of sending your child to summer camp or a before- or after-school program, but only if it promotes your child’s protection and well-being, and is not for education or another purpose.