Posted in Information by Katherine Shaw on December 31st, 2008 We are gearing up for another exciting tax season. Do you know the definition for the new first time home buyer credit? This is a fabulous credit for qualified buyers that purchase a principle residence between April 2008 and July 2009. Call us for more information…
Posted in Information by Katherine Shaw on December 31st, 2008 Remember to pay your officers reasonable compensation for what they do in the corporation. Officers that perform services are employees…like it or not. Beware of tax preparers that take distributions from S Corps and/or pay rents to the officers and pay no officer wages, this is a no-no. Corporations cannot pay rents solely either. If the officer works for the business–and most do especially one officer corps–reasonable compensation needs paid. (Of course if there is absolutely no money then there are no rents being paid either. There are many court cases about this issue. Vehicle leases paid to officers for the use of their personal vehicles is not smart either; this was handled in 2003–use an accountable plan or a non accountable plan instead. There is better methods of taxplanning than this gross negligence to tax law. Call us for all of your tax planning needs.
