S Corporation

10 facts about the pass-through deduction for qualified business income

Leave a Comment / AGI (Adjustable Gross Income), LLC, Partnerships, Past-Through Entities, Qualified Business Income Deducton (QBI), S Corporation, Section 199A Deduction, Sole Proprietors / By Douglas Freeman

Are you eligible to take the deduction for qualified business income (QBI)? Here are 10 facts about this valuable tax break, referred to as the pass-through deduction, QBI deduction or Section 199A deduction. It’s available to owners of sole proprietorships, single-member limited liability companies (LLCs), partnerships, and S corporations. It may also be claimed by …

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Seniors may be able to write off Medicare premiums on their tax returns

AGI (Adjustable Gross Income), Itemized Deduction, Medical Expenses, Medicare Premium Tax Deduction, S Corporation, Self Employed, Tax Cuts and Job Acts (TCJA) / By Douglas Freeman

Are you age 65 and older and have basic Medicare insurance? You may need to pay additional premiums to get the level of coverage you want. The premiums can be expensive, especially if you’re married and both you and your spouse are paying them. But there may be a bright side: You may qualify for …

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Retiring soon? 4 tax issues you may face

C Corporation, Partnerships, Required Minimum Distributions (RMD), Retirement, S Corporation, Social Security, Tax Considerations of Selling Your Home, Tax Planning / By Douglas Freeman

If you’re getting ready to retire, you’ll soon experience changes in your lifestyle and income sources that may have numerous tax implications. Here’s a brief rundown of four tax and financial issues you may deal with when you retire: Taking required minimum distributions. This is the minimum amount you must withdraw from your retirement accounts. …

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An S corporation could cut your self-employment tax

C Corporations, Corporations, Employment Tax, Federal Income Tax, Income Tax, Internal Revenue Service (IRS), S Corporation, Self Employment Tax / By Douglas Freeman

If your business is organized as a sole proprietorship or as a wholly-owned limited liability company (LLC), you’re subject to both income tax and self-employment tax. There may be a way to cut your tax bill by conducting business as an S corporation. Fundamentals of self-employment tax. The self-employment tax is imposed on 92.35% of …

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EIDL loans, restaurant grants offer relief to struggling small businesses

American Rescue Plan Act, Economic Injury Disaster Loan (EIDL), Partnerships, S Corporation, Small Business, Small Businesses Administration / By Douglas Freeman

The American Rescue Plan Act (ARPA), signed into law in early March, aims at offering widespread financial relief to individuals and employers adversely affected by the COVID-19 pandemic. The law specifically targets small businesses in many of its provisions. If you own a small company, you may want to explore funding via the Small Business …

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What are the tax implications of buying or selling a business?

Business Income Tax, C Corporation, Federal Income Tax, Partnerships, Past-Through Entities, S Corporation, Small Business, Tax Planning / By Douglas Freeman

Merger and acquisition activity in many industries slowed during 2020 due to COVID-19. But analysts expect it to improve in 2021 as the country comes out of the pandemic. If you are considering buying or selling another business, it’s important to understand the tax implications. Two ways to arrange a deal. Under current tax law, …

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The next estimated tax deadline is January 15 if you have to make a payment

(ATI) Adjusted Taxable Income, 2020 Estimated Tax Payment, Business Income Tax, Deductions, Income Tax, Partnerships, S Corporation, Self Employed, Social Security, Tax, Tax Withholding's / By Douglas Freeman

If you’re self-employed and don’t have withholding from paychecks, you probably have to make estimated tax payments. These payments must be sent to the IRS on a quarterly basis. The fourth 2020 estimated tax payment deadline for individuals is Friday, January 15, 2021. Even if you do have some withholding from paychecks or payments you …

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The QBI deduction basics and a year-end tax tip that might help you qualify

Limited Liability Company, LLC, Partnerships, Qualified Business Income Deducton (QBI), S Corporation, Small Business, Sole Proprietors, Tax, Tax Deduction, Tax Planning / By Douglas Freeman

If you own a business, you may wonder if you’re eligible to take the qualified business income (QBI) deduction. Sometimes this is referred to as the pass-through deduction or the Section 199A deduction. The QBI deduction: Is available to owners of sole proprietorships, single-member limited liability companies (LLCs), partnerships, and S corporations, as well as …

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The importance of S corporation basis and distribution elections

Business Deductions, Business Start Ups, C Corporation, S Corporation, Shareholder, Small Business, Strategic Business Planning, Tax, Tax Deduction, Tax Planning / By Douglas Freeman

S corporations can provide tax advantages over C corporations in the right circumstances. This is true if you expect that the business will incur losses in its early years because shareholders in a C corporation generally get no tax benefit from such losses. Conversely, as an S corporation shareholder, you can deduct your percentage share …

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ESOPs offer businesses a variety of potential benefits

C Corporations, Employee Benefits, Employee Stock Ownership Plans, Employees, Retirement, S Corporation, Small Business, Tax, Tax Deduction, Tax Planning / By Douglas Freeman

Wouldn’t it be great if your employees worked as if they owned the company? An employee stock ownership plan (ESOP) could make this a reality. Under an ESOP, employee participants take part ownership of the business through a retirement savings arrangement. Meanwhile, the business and its existing owner(s) can benefit from some tax breaks, an …

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