Hey Everyone, Boris here. Make sure you check out these links. 🆓 Download FREE PDF: 7 Write-Offs Every S-Corporation Business Owner MUST Know: bit.ly/download7TaxWriteOffs ☎ Schedule your FREE Tax Advisory Session - www.TaxPlanningCall.com 👉 Make sure you SUBSCRIBE so you do not miss out on future tax-saving tips and strategies - bit.ly/3AXHUtM
Boris - When selling your home to an S corporation as a tax strategy as talked about in your podcast, what if the 100% shareholder of the S Corporation is the same as the seller of the home, will that cause any red flags?
I just sold a property in Portland and I'm thinking of putting the cash in stocks, I know everyone is saying it's ripe enough, but Is this a good time to buy stocks? How long until a full recovery? How are other people in the same market raking in over $200k gains with months, I'm really just confused at this point.
@AnnaSPerez-zk5eq It all depends on how long you're willing to hold for, stocks might likely tank further, but making serious gains in this downtrend wouldn't be a problem if you're a pro.
I like my CPA. He’s honest, he doesn’t overcharge, and he dutifully covers my wife’s businesses and our taxes. It is a breath of fresh air compared to our previous guy I won’t name, who seemed to be using us as an income stream for his mortgage and car payments. But our CPA hasn’t helped us out with tax strategy to the levels I expect. What is the point of working so much when sending so much of the profit to the government? It’s maddening, and we are doing it while the ultra wealthy avoid those very taxes. I’d like a game plan but I hate to sever ties to a good guy. Any solution?
Is buying a home with an S-corp possible? I have a HVAC contractors license in California and I’m looking into buying a home that will be also where I do lots of paperwork .
Hey, i like your channel! I have a couple questions: 1) what if the s-corp doesnt make any money, how do you pay yourself? 2) If the business does make money, do you have to distribute the entire profit, or can you leave some in the business for growth and expansion?
1. You do not have to pay payroll if you didn’t make any money; if you’re not making money, you likely elected S Corp too soon; 2. You do not have to distribute all profits.
If you work out of the home office, how much is the mortgage and utilities can you claim. Only the square footage of the area? So a percentage of the payment? Or can you do the entire aps bill, entire garbage bill? With the accountable plan. Currently we are an s corp and have the electric bill directly from th3 business account.
Can you take distributions and classify them as return of invested capital and pay no tax as its simply a return of your invested capital? Also how is your basis determined when debt is involved. For instance, I buy a 2 million dollar business. I put 400k down and finance the rest. How does the debt affect the basis?
Thanks for the awesome video, very helpful for me. I opened by company in 2022 Feb and I am the only employee of my scorp and work from home.My CPA like you explained says cannot deduct anything. He said no to even paying kids. Is it too late to pay kids for 2022 and all these accountable plan you mentioned. I heard you can deduct for first year company opening expenses too but he says no to it too. Where is that Costco video you mentioned?
Thanks for watching! We're glad to have you here. Don't forget to hit that subscribe button for more helpful content. Schedule a call with our Tax Advisor at www.TaxPlanningCall.com.
I’m sorry if I missed this in your video. But besides the fact with section 127 I’m helping my kid get some extra money for tuition, what is the personal tax savings for me as a business owner of an S-Corp to offer tuition reimbursement? How will this lower my tax liability? {I really hope my question makes sense to you and thanks in advance!}
I just watched your video. Thank you! It has a lot of great info. Just wondering if section 162 can be used with LLC business entity, and structured S corp for the tax purposes?
TWO questions. so I cut trees in the woods my home is definetly my office, and the woods is where i perform my work falling trees , can I write the milleage off when i drive from my home to the woids , the location of my cutting changes .
Great video Boris! Thank you so much! 👍 Question: if I'm a 2% S-Corp owner, I know I can't get the fringe benefit of my company paying for my health insurance, but can they reimburse me for my health insurance premiums? And if not, can I deduct this on my personal tax return?
Yes and yes. Start a Health Reimbursement Arrangement by formally adopting a plan, then the plan reimburses you (after you substantiate them, so keep it formal in case of audit) for premiums and any other eligible expense. The company adds those reimbursements as non-FICA wages on your W2, and you deduct them as self-employed insurance. It is best if you are the only employee, then you can do a full section 105 HRA with unlimited reimbursements. If you have employees and no group insurance plan I would do an ICHRA, which in theory has no reimbursement limits, but if you want a high reimbursement limit for yourself you must also give it to your employees. They can then buy an ACA individual plan for themselves, which you reimburse through your HRA. If you have a group insurance plan paid by the company then your HRA can only reimburse you for the premiums you actually pay out of pocket, the company portion becomes a taxable fringe benefit to you as a 2% owner, which is clearly not ideal.
What is the downfall of using depreciation of my home? Is it true that the depreciation percentage will be deducted from the profits when I sell my house?
Enjoying your videos, we are starting out with a new business and want to make sure we do everything the right way, do you offer tax planning services for companies that are just starting out? Or would you be able to recommend someone who does?
Not more than 5 percent of the amounts paid or incurred by the employer for educational assistance during the year may be provided for the class of individuals who are shareholders or owners (or their spouses or dependents), each of whom (on any day of the year) owns more than 5 percent of the stock or of the capital or profits interest in the employer.
I just noticed that you mentioned 2% and how owners do not qualify for tuition reimbursement. In the even that you have several employees and all of them are taking tuition reimbursement, it seems like owners can also take it, but only up to 5% of the total. Maybe I'm misreading, but that's my take on the code.
About if my son went just a semester to a private university, hes currently 19, and he works full time with us. Should I wait till he is 21 to pay that student loan, with the business money? Even if he didnt finished. Or he would have to finish a career?
What if you have a 50/50 partnership in an S corp. I work less than my partner so our pay is different. Is this allowed. I guess my question is do we both have to make the same money on the payroll ?
Bit confused on your term "50/50 partnership" and "our pay is different" and whether or not the business is an existing 1065 Partnership converting to an (1120S) S-Corp entity or if this is going to be a NEW business started up as an S-Corp. Typically, when someone says they are a 50/50 partnership it implies that each partner splits all income and expenses in half. Technically, your supposed to account for each partner's equity separately (whether cash/equipment equity or sweat/service equity) and that determines their actual split which is rarely 50/50 without putting extra effort into balancing things between what each partner does to making sure it's a true 50/50 split. This is why I'm confused when you say you have a 50/50 partnership, but have different rates of pay. As a general answer to your question, you do NOT have to make the same money on the S-Corp payroll. If you are both going to be owner-shareholders and officers of the company the "reasonable salary" paid are determine by the owners/officers operating the business. In other words if you both agree, your partner can have a larger salary than you.
Thank you for sharing this information. Can you explain a little more and possibly show an example of how to go back and "catch up" on the health premiums through payroll so that it will appear on the W2 be able to take advantage of the tax savings? thank you!
I have to set up a business for a short term hospitality business in Alaska . Short term because I’m only doing this for the summer and the owners are “leasing “ me the building the lodge where we rent rooms nightly . I’ve managed the business for them ( minus any paperwork such as taxes ,, bank deposits , payroll ) so all this is very overwhelming. My goal is to make as much tax free money over the short summer tourist season and be done . The building/business is up for sale currently . I need some direction any help Would be greatly appreciated
I'm trying to understand the business operations being described. It sounds like the owners of the lodge are just the landlords and their business angle is strictly rental activity and sounds like you are some sort of "free-lance" hotel manager. You say you are "leasing" the building, so does that mean you have money coming out of your pocket and only get paid if you have enough customers rent out rooms? If you pay the owners $10,000 to "lease" the lodge, but only make $6,000 renting out rooms for the summer that means you have nothing to show for it and lose $4,000 of your money. Is that correct on how the business arrangement is between you and these lodge owners?
Hi just came across your vid. Is there a way for a C corp to help me with my studnet loans that has acquired prior to working for that company? Much thanks
Great vid I’m a cpa in Modesto California and always trying to expand my knowledge and this was great. Love your energy I think you could be in the wwe
I'm also in the 209. Can we connect about tax strategy? I am currently working with an EA but haven't talked strategy. New to this! Your Time and consideration would be greatly appreciated. Thank you.
thanks Boris. Subsribed. Can you do a breakdown 1120s vs 1065? We have 2 1065's and do draw and distribution after income end of year, vs 1120's, where you have to have payroll and w2. pros and cons if you can do. thanks
Am trying2 get in2 (S-corp)?. I work 4'A trucking Outfit Which pays Me thru A 1099?. Average between 1500-2-2000. Wkly. How Would S-corp benefit Me?. Please help. Tk-U
The simplest way would be to just update your DBA ("Doing Business As") list of names on your business license. From an accounting standpoint you would track each business activity separately so that you can easily see issues and analyze performances for those specific activities. Since both activities are under the same umbrella S-Corp everything from both activities would all go on the same 1120S tax return. For example "Yum Brands" is a corporation name, but they "do business as" KFC, Pizza Hut, Taco Bell, and The Habit Burger Grill. It keeps books for the 4 different activities separate for analysis purposes, but will have a main set of books for the company as a whole for shared assets and liabilities common to 2 or more activities. I've seen a lot of places where KFC and Taco Bell are right next to each other (or even in the same building) which means the trucks and related expenses used to deliver supplies would be a common set of items on the main books rather than spilt between the KFC and Taco Bell books.
LLC, if you want it to be a limited liability company. Tax default status depends on numerosity of members either disregarded entity (sole proprietorship) or as a partnership for multi-member LLC. A Inc. or Corporation formed as such has a tax default as Boris mentioned as a C-Corp (double taxation). Either a Corp/LLC/PLLC or even a LLP could elect to be taxed as a tightly held corporation (S-Corp) if they are an "eligible entity". So first step is figuring out if you are an eligible entity then talk to a CPA or trusted financial advisor on whether electing to be taxed as an S-Corp is more beneficial than not. Good luck.
You have a great way of explaining these complex strategies very clearly. I live in NJ and want to work with you. Can I set up a call to speak with you?
If i incurred capital loss in previous years that was carried over in my taxes and then i incur profit in one of the future years. Will that profit balance out the previous carryover loss even if i have not filed for mark to market status?
Simple answer is yes. Your capital loss carryover will reduce your taxable income form other sources like W-2 income and/or business profits. Capital losses from Schedule-D are limited to $3000 per year ($1500 for Married filing separately) any losses that exceed this amount for the current year carry to the Schedule-D (Lines 6 for short-term and 14 for long-term loss carryovers) each year until the loss is recovered. If you have capital gains in the current year the carryover amounts on Lines 6 and/or 14 will reduce those gains and the bottom line of Schedule-D then carries to Form 1040, Line 7 Capital Gains or (Loss) on the current year tax return. If you meet the conditions to be considered a "Trader" rather than "investor" (see IRS Topic No. 429, Traders in Securities) your income or loss from that activity will be reported on Schedule-C if you are a sole-proprietor or 1065 Partnership and the bottom line of Schedule-C carries to Line 3 of Schedule-1 (Form 1040) and if you are an (1120S) S-Corp your portion of the S-Corp's profit/loss carries to Line 5 of Schedule-1 (Form 1040) and the total of your business activities on Schedule-1 (Form 1040) Line 10 will then carry to Line 8 of your 1040 and be added to the income from W-2, 1099-R, 1099-INT, 1099-DIV, etc. It is possible to have both a Capital Loss for the prior year carryover on Line 7 and a business loss on Line 8 of your 1040 and depending on your other income (W-2, 1099-R, etc.) and the amount of loss you might fall into Net Operating Loss (NOL) territory... but that's a different subject.
@@borismusheyevcpa How so? 🤔 The original commenter "S A" mentions prior year capital losses, implying that during these years they had not filed the mark-to-market election and was wondering if a capital loss carryover would offset the profits of future investments. Since capital loss carryovers continue to be deductible against all sources of taxable income (not just investment-based) in each succeeding year until fully recovered, I don't see why the capital loss carryover would not apply regardless as to whether they had made the mark-to-market election for their S-Corp. Granted I only made reference to IRS Topic No. 429, but that would have been enough as a starting point for also referencing IRS Publication 550, IRS Form 3115, IRS Instructions Form 3115, IRS Form 4797, IRS Instructions Form 4797, IRS Form 1120S, and IRS Instruction Form 1120S that would have explained my previous comment if they did the research that would lead to the same conclusion. 🤔 Am I missing something? I'd like to know so that the information I provided does not lead anyone astray and for my own personal knowledge for me to keep in mind for future business endeavors I may pursue.
thank you love your videos i am a new b here my business call GCN, LLC but in my W-9 I choose S. Corp is this okay in your opinion please help me. thanks
If I hire high school students during the summer and they don’t make more than $12,950 then they don’t need to claim on their side? Or need to claim it but they just don’t get tax on it.
The $12,950 filing threshold stated in IRS Publication 17 is base on the total income from all jobs and income sources. A high school student working only one job making under the threshold, is not required to file, but if they have any income tax withholding for the federal (Box 2) and/or state (box 17) on their W-2 then they can file to have those amounts refunded to them. If someone makes less than the $12,950 filing threshold, but is over 24 they are eligible for the Earned Income Credit (EIC) and could potentially get a higher refund on top of their Box 2 amount. So, though not required to file, they should file to get back their Box 2 withholdings and EIC they may qualify for.
section 127 under Cares Act- can the business owner use this to pay student loans from the past even if they did not get a degree? Is still paying on past loans.
From what I could find with a few Google searches, the only limitation for a company with an Educational Assistance Program (EAP) under Section 127 is that the pay out from the plan cannot be converted in such a way that it can be spent on non education items. There is no stipulations or limits on the age of student loans or graduation status... so the answer to your question is: Yes, a business can pay on their employees' old student loans using a Section 127 Educational Assistance Program.
If my son is working and has a job paying him 60Km can I still pay him? He wants to go back to school for his master but it's so expensive. Can i help him and deduct that?
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Hey Everyone, Boris here. Make sure you check out these links.
🆓 Download FREE PDF: 7 Write-Offs Every S-Corporation Business Owner MUST Know: bit.ly/download7TaxWriteOffs
☎ Schedule your FREE Tax Advisory Session - www.TaxPlanningCall.com
👉 Make sure you SUBSCRIBE so you do not miss out on future tax-saving tips and strategies - bit.ly/3AXHUtM
I am setting up my company now and want to set it up right.
Can you help put me on the right path.
Boris - When selling your home to an S corporation as a tax strategy as talked about in your podcast, what if the 100% shareholder of the S Corporation is the same as the seller of the home, will that cause any red flags?
As a CPA who does both tax and audit… I find your videos extremely helpful. Thanks, Boris!
Thanks Cory!
I am in the process of changing my LLC to an S Corp and I hope the CPA I hired is as on the ball as you . I appreciate your knowledge and insight
I just sold a property in Portland and I'm thinking of putting the cash in stocks, I know everyone is saying it's ripe enough, but Is this a good time to buy stocks? How long until a full recovery? How are other people in the same market raking in over $200k gains with months, I'm really just confused at this point.
@AnnaSPerez-zk5eq It all depends on how long you're willing to hold for, stocks might likely tank further, but making serious gains in this downtrend wouldn't be a problem if you're a pro.
@AnnaSPerez-zk5eq Hi, please who is the expert assisting you and how do I reach out to them?
I like my CPA. He’s honest, he doesn’t overcharge, and he dutifully covers my wife’s businesses and our taxes. It is a breath of fresh air compared to our previous guy I won’t name, who seemed to be using us as an income stream for his mortgage and car payments.
But our CPA hasn’t helped us out with tax strategy to the levels I expect. What is the point of working so much when sending so much of the profit to the government? It’s maddening, and we are doing it while the ultra wealthy avoid those very taxes. I’d like a game plan but I hate to sever ties to a good guy. Any solution?
Is buying a home with an S-corp possible?
I have a HVAC contractors license in California and I’m looking into buying a home that will be also where I do lots of paperwork .
Please do a video on the tax codes you mentioned. I think that would be very helpful to all of us that listen.
Hey, i like your channel! I have a couple questions: 1) what if the s-corp doesnt make any money, how do you pay yourself? 2) If the business does make money, do you have to distribute the entire profit, or can you leave some in the business for growth and expansion?
1. You do not have to pay payroll if you didn’t make any money; if you’re not making money, you likely elected S Corp too soon; 2. You do not have to distribute all profits.
while waiting for the result of the election from irs, can i treat our payroll and taxes as SCORP?
Yes u can!
I just saw this 2/27/2024.
Love learning on this subject. Where can I further my learning?
If you work out of the home office, how much is the mortgage and utilities can you claim. Only the square footage of the area? So a percentage of the payment? Or can you do the entire aps bill, entire garbage bill? With the accountable plan. Currently we are an s corp and have the electric bill directly from th3 business account.
Can you take distributions and classify them as return of invested capital and pay no tax as its simply a return of your invested capital? Also how is your basis determined when debt is involved. For instance, I buy a 2 million dollar business. I put 400k down and finance the rest. How does the debt affect the basis?
What if all my profits are short term capital gains? Do I run it thru payroll or as a distribution?
Thank you so much. My prayers have been answered. A few years short, but never too late
You are so welcome
Thanks for the awesome video, very helpful for me. I opened by company in 2022 Feb and I am the only employee of my scorp and work from home.My CPA like you explained says cannot deduct anything. He said no to even paying kids. Is it too late to pay kids for 2022 and all these accountable plan you mentioned. I heard you can deduct for first year company opening expenses too but he says no to it too. Where is that Costco video you mentioned?
Love the quality of your videos and the value you're providing! Thank you very much for your hard work.
I appreciate that!
wow! Just found you, just started a business, will definitely be following you.
Thanks for watching! We're glad to have you here. Don't forget to hit that subscribe button for more helpful content. Schedule a call with our Tax Advisor at www.TaxPlanningCall.com.
I’m sorry if I missed this in your video. But besides the fact with section 127 I’m helping my kid get some extra money for tuition, what is the personal tax savings for me as a business owner of an S-Corp to offer tuition reimbursement? How will this lower my tax liability? {I really hope my question makes sense to you and thanks in advance!}
I just watched your video. Thank you! It has a lot of great info.
Just wondering if section 162 can be used with LLC business entity, and structured S corp for the tax purposes?
TWO questions. so I cut trees in the woods my home is definetly my office, and the woods is where i perform my work falling trees , can I write the milleage off when i drive from my home to the woids , the location of my cutting changes .
What a brilliant video. Great advice, simple and practical.
Great video Boris! Thank you so much! 👍 Question: if I'm a 2% S-Corp owner, I know I can't get the fringe benefit of my company paying for my health insurance, but can they reimburse me for my health insurance premiums? And if not, can I deduct this on my personal tax return?
Yes and yes. Start a Health Reimbursement Arrangement by formally adopting a plan, then the plan reimburses you (after you substantiate them, so keep it formal in case of audit) for premiums and any other eligible expense. The company adds those reimbursements as non-FICA wages on your W2, and you deduct them as self-employed insurance. It is best if you are the only employee, then you can do a full section 105 HRA with unlimited reimbursements. If you have employees and no group insurance plan I would do an ICHRA, which in theory has no reimbursement limits, but if you want a high reimbursement limit for yourself you must also give it to your employees. They can then buy an ACA individual plan for themselves, which you reimburse through your HRA. If you have a group insurance plan paid by the company then your HRA can only reimburse you for the premiums you actually pay out of pocket, the company portion becomes a taxable fringe benefit to you as a 2% owner, which is clearly not ideal.
What is the downfall of using depreciation of my home? Is it true that the depreciation percentage will be deducted from the profits when I sell my house?
Section 127 Tuition reimbursement for college loans... I guess we don't run that through payroll, just cut separate check for that - right?
Enjoying your videos, we are starting out with a new business and want to make sure we do everything the right way, do you offer tax planning services for companies that are just starting out? Or would you be able to recommend someone who does?
Hey Ashley! Yes, I can help. You can book a call at www.TaxPlanningCall.com
I file as an S Corp. Where do we enter the distributions to the shareholders? TIA
Or is it better just to consider them as "draws"?
I think it's line 16 on the K-1
Thank you so much, I have never understood this as much as I have the way you've explained it 💯.
Happy to help!
Even with my knowledge I know I need help with my business structure
This info was absolutely so helpful! Thank you!
If you only pay yourself dividends and no salary, how do you pay into Medicare and Social Security?
You should be paying yourself a "reasonable w-2 salary" (typically 30% minimum of net income). then the payroll taxes are applied to that w-2 salary
Are 280A ("Augusta Rule") days accountable plan reimbursements or are those done separately?
Not more than 5 percent of the amounts paid or incurred by the employer for educational assistance during the year may be provided for the class of individuals who are shareholders or owners (or their spouses or dependents), each of whom (on any day of the year) owns more than 5 percent of the stock or of the capital or profits interest in the employer.
I just noticed that you mentioned 2% and how owners do not qualify for tuition reimbursement. In the even that you have several employees and all of them are taking tuition reimbursement, it seems like owners can also take it, but only up to 5% of the total. Maybe I'm misreading, but that's my take on the code.
About if my son went just a semester to a private university, hes currently 19, and he works full time with us. Should I wait till he is 21 to pay that student loan, with the business money? Even if he didnt finished. Or he would have to finish a career?
Can I use Accountable Plan in other types of entities (LLC, C Corp, Partnership, etc)?
Thanks for your info. Very helpful.
Most accountants are pretty dry. You are funny as shyt and very helpful!!! Thank you for making accounting fun and solving problems!
What if you have a 50/50 partnership in an S corp. I work less than my partner so our pay is different. Is this allowed. I guess my question is do we both have to make the same money on the payroll ?
Bit confused on your term "50/50 partnership" and "our pay is different" and whether or not the business is an existing 1065 Partnership converting to an (1120S) S-Corp entity or if this is going to be a NEW business started up as an S-Corp. Typically, when someone says they are a 50/50 partnership it implies that each partner splits all income and expenses in half. Technically, your supposed to account for each partner's equity separately (whether cash/equipment equity or sweat/service equity) and that determines their actual split which is rarely 50/50 without putting extra effort into balancing things between what each partner does to making sure it's a true 50/50 split. This is why I'm confused when you say you have a 50/50 partnership, but have different rates of pay.
As a general answer to your question, you do NOT have to make the same money on the S-Corp payroll. If you are both going to be owner-shareholders and officers of the company the "reasonable salary" paid are determine by the owners/officers operating the business. In other words if you both agree, your partner can have a larger salary than you.
What's a reasonable price for preparing an 1120-S?
Is there a video for pre launch tax strategies, for new business? Particularly s-corp?
Yes
do you have a package deal for 2022 biz/tax clean up, tax filing, biz growth plan?
Hey Andy! Yes we do please schedule your call with my team here: www.taxplanningcall.com
@@borismusheyevcpa got it done but it looks like with mr. Shimanov
Thank you for sharing this information. Can you explain a little more and possibly show an example of how to go back and "catch up" on the health premiums through payroll so that it will appear on the W2 be able to take advantage of the tax savings? thank you!
Check out this video: th-cam.com/video/kKvCAuHPrdU/w-d-xo.html
Is it a one time 5,200 or every year?
Boris, great video. Can you do 1099 for our kids who worked for the business?
Issuing 1099 to your kid creates a tax liability for your kid!
I have to set up a business for a short term hospitality business in Alaska . Short term because I’m only doing this for the summer and the owners are “leasing “ me the building the lodge where we rent rooms nightly . I’ve managed the business for them ( minus any paperwork such as taxes ,, bank deposits , payroll ) so all this is very overwhelming. My goal is to make as much tax free money over the short summer tourist season and be done . The building/business is up for sale currently . I need some direction any help
Would be greatly appreciated
I'm trying to understand the business operations being described. It sounds like the owners of the lodge are just the landlords and their business angle is strictly rental activity and sounds like you are some sort of "free-lance" hotel manager. You say you are "leasing" the building, so does that mean you have money coming out of your pocket and only get paid if you have enough customers rent out rooms? If you pay the owners $10,000 to "lease" the lodge, but only make $6,000 renting out rooms for the summer that means you have nothing to show for it and lose $4,000 of your money. Is that correct on how the business arrangement is between you and these lodge owners?
Wife is employee of my s-corp, has student loans from years ago, but not an active student. Is she still eligible for the sec 127 deduction?
No she is not eligible due to a tribute on rules, meaning she is a spouse of an s-corp owner
Thanks for sharing such a video. Much needed. It was so convincing. Nice work.
You and Mark J Kohler are my go to for tax advice
Hi just came across your vid. Is there a way for a C corp to help me with my studnet loans that has acquired prior to working for that company? Much thanks
Great vid I’m a cpa in Modesto California and always trying to expand my knowledge and this was great. Love your energy I think you could be in the wwe
Awesome I love to hear that! I'm glad you found it helpful :)
I'm also in the 209. Can we connect about tax strategy? I am currently working with an EA but haven't talked strategy. New to this! Your Time and consideration would be greatly appreciated. Thank you.
Boris, you are phenomenal!! I'm going to follow you like a lost puppy! Thanks!!
Lol thanks! We always take care of lost puppies!
Can you pay student loans for a medical resident in residency with the 127
Yes u can!
I just found your channel! this is some good stuff!
Great video, very well explained! Where can I find or get your book?
Check it out here: www.scorptaxbook.com
Thanks for all the good data. There is so much to go through.
Glad it was helpful!
thanks Boris. Subsribed.
Can you do a breakdown 1120s vs 1065? We have 2 1065's and do draw and distribution after income end of year, vs 1120's, where you have to have payroll and w2. pros and cons if you can do. thanks
I’m starting a new business and would love some help with tax planning
Thank you. I am setting up my LLC for S Corp election right now and have many questions! Wpuld love to catch you on another stream
Now we’re talking. Great advise!
Am trying2 get in2 (S-corp)?.
I work 4'A trucking Outfit Which pays Me thru A 1099?.
Average between 1500-2-2000.
Wkly.
How Would S-corp benefit Me?.
Please help.
Tk-U
By now we shouldn't be surprised in our previous time with our parents and they're connection to life's lessons learned.
I have an S corp in California. I want to start another business under this S Corp. how do I go about doing this?
The simplest way would be to just update your DBA ("Doing Business As") list of names on your business license. From an accounting standpoint you would track each business activity separately so that you can easily see issues and analyze performances for those specific activities. Since both activities are under the same umbrella S-Corp everything from both activities would all go on the same 1120S tax return.
For example "Yum Brands" is a corporation name, but they "do business as" KFC, Pizza Hut, Taco Bell, and The Habit Burger Grill. It keeps books for the 4 different activities separate for analysis purposes, but will have a main set of books for the company as a whole for shared assets and liabilities common to 2 or more activities. I've seen a lot of places where KFC and Taco Bell are right next to each other (or even in the same building) which means the trucks and related expenses used to deliver supplies would be a common set of items on the main books rather than spilt between the KFC and Taco Bell books.
I am creating an LLC on Jan 1 2023 to be elected as S-Corp. In the LLC creation form of company name, should I use LLC or INC? Thanks!!:)
LLC, if you want it to be a limited liability company. Tax default status depends on numerosity of members either disregarded entity (sole proprietorship) or as a partnership for multi-member LLC. A Inc. or Corporation formed as such has a tax default as Boris mentioned as a C-Corp (double taxation). Either a Corp/LLC/PLLC or even a LLP could elect to be taxed as a tightly held corporation (S-Corp) if they are an "eligible entity". So first step is figuring out if you are an eligible entity then talk to a CPA or trusted financial advisor on whether electing to be taxed as an S-Corp is more beneficial than not. Good luck.
Is the income (dividends) going to effect you if you are collecting social security
Of course it does. All taxable income affects taxation of social security.
Amazing value provided in this video. Thanks Boris!
Glad it was helpful!
# Tax Preparation #Tax Planning Lots of questions
if im an owner of an s corp and it is also my full time job can I pay $5250 towards my student loans through the business?
Owners of S-Corp can not use this strategy for themselves. It can be used for ur kids (21 and older) that are employed by the business
Boris, when I convert from a sole proprietor LLC to an S-corp, do I have to go to the State and change my charter?
you should only have to file a form with the IRS. you are still an LLC but taxed as an SCorp
For #1 - isn’t it just easier to have a business credit card and expense it that way?
You have a great way of explaining these complex strategies very clearly. I live in NJ and want to work with you.
Can I set up a call to speak with you?
Yes you can speak to my team at www.taxplanningcall.com
If i incurred capital loss in previous years that was carried over in my taxes and then i incur profit in one of the future years. Will that profit balance out the previous carryover loss even if i have not filed for mark to market status?
Simple answer is yes. Your capital loss carryover will reduce your taxable income form other sources like W-2 income and/or business profits.
Capital losses from Schedule-D are limited to $3000 per year ($1500 for Married filing separately) any losses that exceed this amount for the current year carry to the Schedule-D (Lines 6 for short-term and 14 for long-term loss carryovers) each year until the loss is recovered. If you have capital gains in the current year the carryover amounts on Lines 6 and/or 14 will reduce those gains and the bottom line of Schedule-D then carries to Form 1040, Line 7 Capital Gains or (Loss) on the current year tax return.
If you meet the conditions to be considered a "Trader" rather than "investor" (see IRS Topic No. 429, Traders in Securities) your income or loss from that activity will be reported on Schedule-C if you are a sole-proprietor or 1065 Partnership and the bottom line of Schedule-C carries to Line 3 of Schedule-1 (Form 1040) and if you are an (1120S) S-Corp your portion of the S-Corp's profit/loss carries to Line 5 of Schedule-1 (Form 1040) and the total of your business activities on Schedule-1 (Form 1040) Line 10 will then carry to Line 8 of your 1040 and be added to the income from W-2, 1099-R, 1099-INT, 1099-DIV, etc.
It is possible to have both a Capital Loss for the prior year carryover on Line 7 and a business loss on Line 8 of your 1040 and depending on your other income (W-2, 1099-R, etc.) and the amount of loss you might fall into Net Operating Loss (NOL) territory... but that's a different subject.
This is not enough info to provide an answer
@@borismusheyevcpa How so? 🤔 The original commenter "S A" mentions prior year capital losses, implying that during these years they had not filed the mark-to-market election and was wondering if a capital loss carryover would offset the profits of future investments. Since capital loss carryovers continue to be deductible against all sources of taxable income (not just investment-based) in each succeeding year until fully recovered, I don't see why the capital loss carryover would not apply regardless as to whether they had made the mark-to-market election for their S-Corp.
Granted I only made reference to IRS Topic No. 429, but that would have been enough as a starting point for also referencing IRS Publication 550, IRS Form 3115, IRS Instructions Form 3115, IRS Form 4797, IRS Instructions Form 4797, IRS Form 1120S, and IRS Instruction Form 1120S that would have explained my previous comment if they did the research that would lead to the same conclusion. 🤔 Am I missing something? I'd like to know so that the information I provided does not lead anyone astray and for my own personal knowledge for me to keep in mind for future business endeavors I may pursue.
thank you love your videos i am a new b here my business call GCN, LLC but in my W-9 I choose S. Corp is this okay in your opinion please help me. thanks
Great video! New sub😊
This is great info!
If I hire high school students during the summer and they don’t make more than $12,950 then they don’t need to claim on their side? Or need to claim it but they just don’t get tax on it.
The $12,950 filing threshold stated in IRS Publication 17 is base on the total income from all jobs and income sources. A high school student working only one job making under the threshold, is not required to file, but if they have any income tax withholding for the federal (Box 2) and/or state (box 17) on their W-2 then they can file to have those amounts refunded to them.
If someone makes less than the $12,950 filing threshold, but is over 24 they are eligible for the Earned Income Credit (EIC) and could potentially get a higher refund on top of their Box 2 amount. So, though not required to file, they should file to get back their Box 2 withholdings and EIC they may qualify for.
I need help doing my taxes.
Hi You can schedule a call with my team here: www.TaxPlanningCall.com
Can you do taxes for a S Corp in Missouri?
section 127 under Cares Act- can the business owner use this to pay student loans from the past even if they did not get a degree? Is still paying on past loans.
From what I could find with a few Google searches, the only limitation for a company with an Educational Assistance Program (EAP) under Section 127 is that the pay out from the plan cannot be converted in such a way that it can be spent on non education items. There is no stipulations or limits on the age of student loans or graduation status... so the answer to your question is: Yes, a business can pay on their employees' old student loans using a Section 127 Educational Assistance Program.
is it easier to pay your kids through a family management company rather than paying them a w2 from your business?
Learning so much!
Omg, i should of found you years ago!! I am working on filing my raxes now
Hello again, how do I get in contact with you? I have a few questions, thanks!
Hey Janvier - you can book you call for a free tax advisory session here www.taxplanningcall.com
Looking forward to it :)
If my son is working and has a job paying him 60Km can I still pay him? He wants to go back to school for his master but it's so expensive. Can i help him and deduct that?
Yes u can!
I love this information 💯💯💯💯
These strategies are amazing! About to hire you as my CPA :)
Todd how do I get a hold of you. I'm in fla
where is your office located??????
This is so helpful! Breaking it down!
Glad you think so!
Thanks so much
Hopefully by now we should get it the idea 💡.
What about the Social Security Tax of kids pay?
they still have to may Social Security and Medicare - there is no way around that unfortunately!
I am glad I am near your office in Queens NY! Will visit you soon :)
Ha ha only by appointment😆
This is awesome content thanks Boris! Tax Planning Yes
Peter schedule your call with my team at www.taxplanningcall.com
Boris, great stuff! Retirement plan specialist here. Let me know if you want to chat sometime about 401k plans.
Thank you for sharing 💪
My pleasure!
Do you host workshops ?
Where you located ?
How do I contact you to learn more information on maximizing my benefits on my S-Corp.
Hey Cee, you can book your Tax Advisory call with us here: www.taxplanningcall.com
Talk Soon
This is next level
Do you do New Jersey Businesses as well as New York
Hey yes we do! Here is direct link to book a free tax strategy session. bit.ly/3GKgDtD
Thanks for this useful session!
Glad it was helpful!