June 2023

In general, health and accident insurance premiums paid, on behalf of a greater than 2-percent S corporation shareholder-employee, are deductible by the S corporation. It is to be reportable as wages on the shareholder-employee’s Form W-2, subject to income tax withholding. A 2% shareholder-employee is eligible for an above-the-line deduction in arriving at Adjusted Gross …

Careful…S-Corp Health Insurance Premiums Are Wages Read More »

Section 199A of the Internal Revenue Code was created by the Tax Cuts and Jobs Act (TCJA) signed into law in 2017. A provision of the law provides for a 20% deduction for so-called “qualified business income” (“QBI”). If a taxpayer can utilize the new law, the taxpayer can save a bundle in taxes. However, an American …

20% QBI Deduction? Likely Not for Expats. Read More »

Claiming large charitable write-offs for clothing donations, without following proper procedures can be costly, relative to tax filings. A recent tax court decision defines the landscape. As shown in a new case, Bass, TC Memo 2023-41, 3/27/23, you must obtain an independent appraisal if the total value of your gifts exceeds an annual threshold. A …

Charitable Write-Offs Have Their Limits Read More »