Watson CPA Group - Knowledgebase

Knowledgebase

Recent Articles
Is there a way to avoid Self-Employment tax?
By Jason Watson (Google+) Posted February 2, 2016 This KB article on self-employment taxes and S-Corp elections has been updated, and we have re-released our SubS.pdf tax article. Here are the links to get you started- Comprehensive Guide to S-Corps in PDF (updated Fall of 2015) Updated KB...
14 Feb, 2019 Views: 0 Comments: 0
What are some of the tax court cases for real estate professionals?
By Jason Watson (Google+) Here is a snapshot of some issues the Tax Court has recently dealt with. TC Summary 2012-94 (Wallach) Taxpayer was a real estate agent who attempted to deduct several travel expenses including Hawaii and Lake Tahoe. He attempted to claim the travel was for...
14 Feb, 2019 Views: 0 Comments: 0
What IRS publications deal with audits?
By Jason Watson (Google+) Here are the publications that deal with audits (examinations), appeals and payment options: Pub No. Title 1 Taxpayer Rights 3498 Examination Process 3498a Examination Process (By Mail) 556 Examination of Returns, Appeal...
14 Feb, 2019 Views: 0 Comments: 0
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
You Own the Automobile, Lease Back to Your Company
By Jason Watson (Google+) Posted November 23, 2018 This might take a bit of getting used to so we will start with a similar situation. If you owned and operated a landscaping company, you might own the heavy equipment personally, and lease it back to the company. This is very common, and is...
25 Nov, 2018 Views: 0 Comments: 0
You Own the Automobile, Take Mileage Deduction
By Jason Watson (Google+) Posted November 23, 2018 This is dead. Thanks to the Tax Cuts and Jobs Act of 2017 all miscellaneous deductions that were once subjected to 2% adjusted gross income limits and then deducted on Schedule A are gone. Obtaining a tax deduction through a mileage deduction on...
25 Nov, 2018 Views: 0 Comments: 0
Section 199A Side by Side Comparisons
By Jason Watson (Google+) Posted November 23, 2018 We created a handful of examples on the follow pages with two intentions. One, to demonstrate how the Section 199A deduction is calculated and Two, to show that an S Corp remains a critical tax reduction vehicle. Brace yourself for nauseating...
25 Nov, 2018 Views: 0 Comments: 0
Final Words
By Jason Watson (Google+) Posted November 23, 2018 We hope you enjoy reading this book, and wish you the very best of luck in all your endeavors. If we can be of any assistance, please don’t hesitate to reach out to us! Taxpayer's Comprehensive Guide to LLCs and S Corps : 2019 Edition This...
25 Nov, 2018 Views: 0 Comments: 0
Expectations of Our Clients
By Jason Watson (Google+) Posted November 23, 2018 We select our clients on two important criteria. First, we expect our clients to be open, honest and responsive in communication. Second, we prefer to work with clients who view our partnership as a collaboration, where our challenges and...
25 Nov, 2018 Views: 0 Comments: 0
No BS
By Jason Watson (Google+) Posted November 23, 2018 We are not salespeople; we are consultants. We are not putting lipstick on a pig expecting you to love it. Our job remains being professionally detached, giving you information and letting you decide. We see far too many crazy schemes and...
25 Nov, 2018 Views: 0 Comments: 0
Core Competencies
By Jason Watson (Google+) Posted November 23, 2018 Outside of typical business services, consultation and tax preparation, we have focused on three niche competencies for our group of Colorado Springs CPAs and business advisors. S Corp elections and administration. Rental properties...
25 Nov, 2018 Views: 0 Comments: 0
Consultative Approach
By Jason Watson (Google+) Posted November 23, 2018 How are we different? Easy! We take a consultative approach to our client relationships. We have the experience of a downtown firm without the stuffiness. The Watson CPA Group will be your advocate by putting you in a position to make informed...
25 Nov, 2018 Views: 0 Comments: 0
More About the Watson CPA Group
By Jason Watson (Google+) Posted November 23, 2018 The Watson CPA Group has provided worldwide business consulting, accounting and tax preparation from our Colorado Springs offices since 2007. We use secure client portals to safely exchange financial information, saving you time and resources....
25 Nov, 2018 Views: 0 Comments: 0
Client Portal, Long Distance Relationships
By Jason Watson (Google+) Posted November 23, 2018 Since 2007 we have used ShareFile to administer our Client Portal which provides secure, online document exchange. The Client Portal will allow you to securely upload your financial documents to the Watson CPA Group. Most email servers balk at...
25 Nov, 2018 Views: 0 Comments: 0
Watson CPA Group Fee Structure
By Jason Watson (Google+) Posted November 23, 2018 The Watson CPA Group prides itself in being transparent and having a simple fee structure. Most business services and tax returns will fit into the fees described below. Sure, there's always the outlier or the unusual situation, but the...
25 Nov, 2018 Views: 0 Comments: 0
Retirement Planning Recap
By Jason Watson (Google+) Posted November 23, 2018 There are also several options and combination of options, and we can work with you to settle into the best plans. Here are some jumping off points- One Person Show or Husband/Wife Team Solo 401k plan with Roth Option is the best bet. Very low...
25 Nov, 2018 Views: 0 Comments: 0