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January 6, 2019

If at all possible, you want to qualify for the 20 percent tax deduction offered by new tax code Section 199A to proprietorships, partnerships, and S corporations (pass-through entities).

If you own one business, you can run into some complications qualifying for the Section 199A deduction.

Basic Rules—Below the Threshold

If your taxable income is equal to or below the threshold of $315,000 (married, filing jointl...

April 16, 2017

My tax professional tells me that IRC Section 280A allows me to rent my entire home to my S corporation for 14 days or less during the year and get big tax deductions.

In the example, he explained that I could charge my S corporation $1,500 for each day of use. This rate equals what I would have to pay to rent a home that’s pretty much like mine. Say I rent the home for 14 days. That gives the S corporation a $2...

February 16, 2017

Here are some tips on what you need to do and how to avoid paying taxes on the incorporation.

Qualifying

To qualify for a tax-free incorporation, you must exchange property for stock and be in control of the corporation immediately after the exchange. To meet the control requirement, everyone who exchanged property for stock (i.e., the “control group”) must have ownership of at least 80 percent of the voting shar...

January 27, 2017

Starting a new business can be exciting and stressful at the same time. However, you decided to start your business, let's look at some tax benefits with this new venture.

Instead of waiting until you officially open for business, you can start the timer now on your deductible expenses. The tax law allows you a deduction for start-up expenses. Think of this as the money you spend while thinking about and investi...

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