Tax Planning

Corporate business owners: Is your salary reasonable in the eyes of the IRS?

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May 5, 2025
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Determining “reasonable compensation” is a critical issue for owners of C corporations and S corporations. If the IRS believes an owner’s compensation is unreasonably high or low, it may disallow certain deductions or reclassify payments, potentially leading to penalties, back taxes and interest. But by proactively following certain steps, owners can help ensure their compensation is seen […]
#BusinessTax, #IRSCompliance, #SmallBusinessTips, #TaxPlanning
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Tax Planning

What tax documents can you safely shred? And which ones should you keep?

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April 23, 2025
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Once your 2024 tax return is in the hands of the IRS, you may be tempted to clear out file cabinets and delete digital folders. But before reaching for the shredder or delete button, remember that some paperwork still has two important purposes: Protecting you if the IRS comes calling for an audit, and Helping […]
#AuditProtection, #IRSRecords, #TaxDocumentRetention, #TaxTips2025
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Tax Planning

Explore SEP and SIMPLE retirement plans for your small business

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April 21, 2025
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Suppose you’re thinking about setting up a retirement plan for yourself and your employees. However, you’re concerned about the financial commitment and administrative burdens involved. There are a couple of options to consider. Let’s take a look at a Simplified Employee Pension (SEP) and a Savings Incentive Match Plan for Employees (SIMPLE). SEPs offer easy […]
#RetirementForSmallBusiness, #SEPPlans, #SIMPLEPlans
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Tax Planning

Businesses considering incorporation should beware of the reasonable compensation conundrum

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April 11, 2025
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Small to midsize businesses have valid reasons for incorporating, not the least of which is putting that cool “Inc.” at the end of their names. Other reasons include separating owners’ personal assets from their business liabilities and offering stock options as an employee incentive. If you’re considering incorporation for your company, however, it’s essential to […]
#BusinessIncorporation, #ExecutiveCompensation, #ReasonableCompensation
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Tax Planning

An essential tax deadline is coming up — and it’s unrelated to your 2024 return filing

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April 9, 2025
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Tuesday, April 15 is the deadline for filing your 2024 tax return. But another tax deadline is coming up the same day, and it’s essential for certain taxpayers. It’s the deadline for making the first quarterly estimated tax payment for 2025 if you’re required to make one. Basic details You may have to make estimated […]
#EstimatedTaxes, #QuarterlyTaxes, #TaxDeadline
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Tax Planning

Small business alert: Watch out for the 100% penalty

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April 7, 2025
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Some tax sins are much worse than others. An example is failing to pay over federal income and employment taxes that have been withheld from employees’ paychecks. In this situation, the IRS can assess the trust fund recovery penalty, also called the 100% penalty, against any responsible person. It’s called the 100% penalty because the entire […]
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Tax Planning

Are you a tax-favored real estate professional?

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March 31, 2025
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For federal income tax purposes, the general rule is that rental real estate losses are passive activity losses (PALs). An individual taxpayer can generally deduct PALs only to the extent of passive income from other sources, if any. For example, if you have positive taxable income from other rental properties, that generally counts as passive […]
#PassiveIncome, #RealEstateTax, #RentalProperty, #TaxPlanning
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