It’s that time of year again. Where I have the perennial argument with some clients and friends about who really owns American corporations. After all, they show me their stock certificates. That is their “proof” that they own a portion of the corporation.
As long as you do not operate as a partnership (partners only get a draw, fully subject to all taxes, including payroll taxes), the owners of an enterprise are expected to be paid a salary. That’s the IRS position- the one that counts.
Continue reading Are you reasonable?
I saw a great picture on Facebook the other day. (OK- great, as in this really sucks.) It showed a monopoly board and overwritten it said:
Continue reading Do you believe in Fairy Tales?
One of the services we provide our small business clients is to insure that the payment of reasonable compensation. No, I don’t mean what they pay their employees (although we do that, as well, when requested). No, I am talking about the pay they take for themselves- the owners of the S Corporation or an LLC operating as an S corporation.
Continue reading Reasonable Compensation
They’re ba-ack… Not the poltergeists, although many of you may consider them part of the genre…No, it’s the required annual tax filings…
Continue reading A FIVE letter word. (OK, maybe 3 for some…)
Soooo. You’ve heard it. You know it. Corporations all complain about that 35% tax rate- but few, if any, are paying taxes at that rate. Big companies pay virtually ZERO % and middle-market companies pay 15 to 18%. (By the way, a whole slew of single-owner corporations pay a mandated 35% tax rate!) And, our clients- the ones we convinced to form LLC’s and S entities to save on taxes want us to explain how come they are not paying taxes at the 15% to 18% rates. Continue reading Tax Rates- Pass Throughs and C’s
For years, the one crucial question I had to ask my business tax clients was, “Can you be considered to be a real estate professional?” (If you don’t recall my discussions on this matter, you can refer to my blog posts here and here.) Because without that certification, it’s possible that all expenses involved in rental real estate operations may not be deductible on one’s Schedule E (1040).
Continue reading There’s a New Tax in Town…
It’s amazing what can happen when a corporation has a slew of professionals that do nothing but make sure that their tax bill is very low- zero would be ideal. Oh, I know, we all want to pay the lowest amount of taxes- but companies like GE have managed to pay no taxes, in spite of their profits.
Continue reading How a business can pay no taxes
Love him or hate him, Frank Luntz is a wordsmith par excellence. This Republican consultant spends his time concocting words that evoke good feelings- despite the misgivings one may have for the principles that lie beneath the words. He asserts (correctly, in my opinion, as it applies to the American electorate) that “80 percent of our life is emotion, and only 20 percent is intellect. I am much more interested in how you feel than how you think”. Continue reading It’s not what I do…It’s what I say
Regardless of what happens with the fiscal cliff, there are some pretty major changes to our tax situation. Of course, some of them will only affect those at the upper ends of the income scale, but it’s worthwhile to evaluate what your net income will be starting next week- now.
Continue reading Taxes- 2013 Style!
