Fringe Benefits Provided by an S Corporation

There are many special tax rules that apply to S-corporations and their owners.  Chief among them is the tax treatment of employee fringe benefits.  Application of the rules depends on whether or not the employee owns a greater-than-2% interest in the S-corporation (a “2% shareholder”).  An employee that is a 2% shareholder is taxed on fringe benefits received as if he or she were a partner in a partnership.  Employees that are not 2% shareholders are taxed under the regular corporate fringe benefits rules.
 




Repayments of Loans to S-corporation Shareholders

Many times, owners of S-corporations will loan personal money to their business to alleviate cash deficiencies or simply to increase his or her basis.  As the business begins paying the loan back, shareholders need to be aware of possible income tax consequences of the repayment of a loan previously made to the S corporation.
 




Small Business Healthcare Reimbursement Arrangement Trap for the Unwary

With 2014 well under way, the individual mandate of the Affordable Care Act (the “ACA” a.k.a.




Self-rentals and the Net Investment Income Tax Update

Our article issued June 6, 2013, we discussed the topic of the new 3.8% Net Investment Income Tax and how it might affect income from self-rented property.  The way the Internal Revenue Code temporary regulations read, an individual could be subject to the new tax on net income from self-rented property, even though the income was re-characterized as non-passive income.
 




Reviewing Provisions for the 2014 Tax Year

Last week we looked at items that may affect your tax returns currently being filed.  This week, we will highlight some items to keep in mind for the 2014 tax year for both your individual as well as your business taxes.
 
Several deductions will no longer be available beginning with the 2014 tax year on your individual return, unless Congress acts to extend these items:




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