September 9, 2020

As you likely know, the Tax Cuts and Jobs Act made a big change in how C corporations are taxed—one flat, 21 percent rate.

The new, lower rate makes the C corporation far more appealing than in prior years. But you also need to look at the dark side of this possible opportunity.

Double Taxation of Corporate Dividends

Say you run your business as a C corporation. The business is successful, and your corporation bui...

August 25, 2020

Whether you claim a business office in the home or are simply working at home, say because of COVID-19, you likely have some former personal assets that you now use for business.

Ah, new tax deductions!

Yep. Say you don’t claim a home-office deduction but now you are working at home and sitting in the fancy chair you inherited from your grandmother.

Let’s say you use the fancy chair 85 percent for business purpose...

August 5, 2020

Limited liability companies (LLCs) are a popular choice of entity for small businesses and investment activities.

LLC owners are called members.

  • Single-member LLCs have one owner, although spouses who jointly own an LLC in a community property state can elect treatment as a single member LLC for federal income tax purposes.

  • We will call LLCs with two or more members multimember LLCs.

Key point: LLCs ar...

July 23, 2020

Tax law definitions do not apply to much of the Payroll Protection Program (PPP), making it new ground for owners of S corporations. Here are answers to four questions of concern to many S corporation owners.

1. Spouse Owns S Corporation

Question. My wife owns 100 percent of the S corporation. She has a full-time job and does no work for the S corporation. I am the sole worker in the S corporation. Am I treated a...

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