The Penalty for Late Filing of S Corps or Partnerships is now $195 per monthper shareholder or partner for up to 12 months (more than twice the previous penalty). It does not matter if he entity owes tax or not, this is a late filing of the paperwork. It would INCLUDE not filing an extension. DON’T WAIT TILL THE LAST MINUTE! […]
Category: Sub S Corporations
S Corp Conversion to LLC
Question I have a client who owns 25% stock in an S Corp. Corp owns a parcel of appreciated real property. If S Corp files article of conversion to become an LLC and the LLC elects to be taxed as S Corp, does the old S Corp have to recognized gain on the real estate?Answer […]
Bad Debt Expense
If you are on CASH BASIS, and you never rec’d payment, you have no write off because you only declare it when you receive it.. never received it, never declared it, no write off. If you are on ACCRUAL BASIS, then you declared the revenue when the invoice was generated. NOW, you can write off […]
Health Insurance for Greater than 2% Shareholder of Sub S
Per IRS Notice 2008-1, Special Rules for Health Insurance Costs of 2-Percent Shareholder-Employees, health insurance must be included in the shareholder employee’s 2008 Form W-2 in order to take the self-employed health insurance deduction for shareholder employees owning greater than two percent of the S Corporation. The requirement existed in prior years but there was […]
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Depreciation of Vehicle Depends on Gross Vehicle Weight (GVW)
Curb Weight is the actual weight of the truck without any passengers or cargo in it. It’s the base weight that is used in subtraction to calculate the total weight of the vehicle with passengers and cargo. Gross Vehicle Weight is the total weight of the loaded vehicle. This includes the vehicle itself and the cargo that […]
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Cost Segregation
COST SEGREATION = TAX SAVINGS Cost Segregation is a VERY BENEFICIAL tax angle used by real estate owners to ACCELERATE DEPRECIATION deductions. In the past it was primarily used by large accounting firms and larger clients. The ability for smaller building owners to utilize these techniques is now becoming popular. It takes an engineering study and […]