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Section 199A Frequently Asked Questions
By Jason Watson (Google+) Posted January 18, 2019 Here are some common questions and answers that have come up during recent consultations with clients. Some of these might be repetitive if you’ve been paying attention. Do I have to create an LLC to get the Section 199A deduction? No. It is...
18 Jan, 2019 Views: 0 Comments: 0
Section 199A Rental Property Deduction
By Jason Watson (Google+) Posted January 17, 2019 Defining a trade or business is easy for the most part, however certain activities are murky and one of them is rental properties. On one hand an argument that rental property income is already tax advantaged can be made since it is not subject...
18 Jan, 2019 Views: 0 Comments: 0
Quarterly S Corp Payroll
By Jason Watson (Google+) Posted January 17, 2019 Throughout this book we make reference to running payroll quarterly. Before we discuss the reasons why, if you have a staff where payroll is ran every two weeks the quarterly S Corp payroll concept might still apply so please keep reading. The...
17 Jan, 2019 Views: 0 Comments: 0
Section 199A Pass-Thru Salary Optimization
By Jason Watson (Google+) Posted January 17, 2019 Speaking of W-2s, there is some optimization that is necessary for a small business owner to get the most from the Section 199A deduction. On one hand we want to reduce W-2 salaries to shareholders to minimize self-employment taxes. This was...
17 Jan, 2019 Views: 0 Comments: 0
California Multi-Member LLC S Corp Twist
By Jason Watson (Google+) Posted November 23, 2018 Sounds like a dance move doesn’t? “Oh man, I hurt myself doing the Cali S Corp twist.” “Are you gonna need surgery?” The problem with the previous MMLLC that issues invoices entity structure, is that this works well in most...
17 Jan, 2019 Views: 0 Comments: 0
Parent-Child Arrangement (Income Flows “Up”)
By Jason Watson (Google+) Posted November 23, 2018 You might have two business entities, and you want to combine them but they are also very different. For example, you are a realtor and your spouse is an IT consultant. We could create a holding LLC called Smith Ventures which owns the realtor...
17 Jan, 2019 Views: 0 Comments: 0
Multi-Member LLC That Issues Invoices
By Jason Watson (Google+) Posted January 17, 2019 A simpler way to accomplish the same thing as above is to create three entities again, but the multi-member LLC is owned by you and the other guy, not the S corporations. The S Corps then issue consultation invoices to the multi-member LLC in the...
17 Jan, 2019 Views: 0 Comments: 0
Parent-Child Arrangement (Income Flows “Down”)
By Jason Watson (Google+) Posted January 17, 2019 Another thought along these lines involves a multi-member LLC where you and another non-spouse partner are the members. Later in a later chapter you’ll learn that one of the limitations of an S corporation is that distributions must be made in...
17 Jan, 2019 Views: 0 Comments: 0
Automobile Decision Tree
By Jason Watson (Google+) Posted November 23, 2018 In deciding whether to own the automobile personally or through your S corporation, here is a set of examples to help you make a decision. It is not a hard and fast set of rules, but will provide some guidance. First, let’s establish the...
06 Dec, 2018 Views: 0 Comments: 0
Section 199A W-2 Safe Harbors
By Jason Watson (Google+) Posted November 23, 2018 This is one of the dorky accountant questions… which number on the W-2 do I use? The IRS defined three safe harbors for the use of Section 199 Domestic Production deduction back when that was a thing. Later, in IRS Notice 2018-64 released...
26 Nov, 2018 Views: 0 Comments: 0