S Corporation Health Insurance Premiums
As the year comes to a close, we want to remind our S corporation clients to take the necessary steps to be eligible for the health insurance premiums paid deduction. This deduction for 2% or greater shareholder/employees is an important deduction but there are some rules that must be followed to insure its availability. Hopefully, these thoughts will assist you in preparing your year-end payroll returns. S corporations are subject to special rules regarding employee fringe benefits.
Read POSTDocumentation for Charitable Contributions
Yesterday I asked my daughter to name three things she learned during the day. She began with a statement about what makes plants appear green (from biology class) and followed that with some obscure fact from math class. It was her third statement, however, that caught my interest: “Always get the receipt!” As it turns out, she had fueled her car after school using her debit card and she forgot to request the gas receipt to print out.
Read POSTNew Cost Basis Reporting for Sales of Securities Set to Begin
Effective for tax year 2011, Form 1099-B issued by stock brokers is required to report the cost basis of certain securities sold during the year. Under the old rules Form 1099-B reported the gross sale proceeds for securities sold during the year. Beginning with the 2011 year Form 1099-B will also report the cost basis of securities sold during 2011 BUT only for stock purchased in 2011 and later. This means your 2011 Form 1099-B will report gross proceeds from securities sold during the year and will report cost basis for those that were purchased during 2011 and will not report cost basis for those purchased in prior years.
Read POSTEnd of Year Tax Legislation
You may recall the uncertainty in late 2009 surrounding the estate tax rules and their repeal as provided for by the Economic Growth and Tax Relief Reconciliation Act of 2001, for estates of decedents dying after December 31, 2009. I don’t think many of us thought Congress would actually allow the estate tax to be repealed. It did. Congressional deadlock prevented any resolution to the repeal until late 2010 resulting in a new estate tax exemption amount of $5,000,000.
Read POSTState of Idaho Department of Labor Corporate Officer Exemption from Unemployment Tax
Recently the Department of Labor changed the rules which required corporations to pay state unemployment tax (SUT) on corporate officer wages. Under the new rules the corporation can make an election to exempt officer wages from SUT. With the increases in unemployment tax over the last few years this change in law could result in a more significant savings. Please be aware that if you take advantage of the new exemption for corporate officer wages you will not be able to collect unemployment benefits.
Read POSTReady to chat?
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