QSubs: A Smart Strategy for S Corporations
If you operate your business as an S corporation, you likely enjoy its tax-saving benefits—especially on Social Security and Medicare taxes. But there’s another powerful advantage you may not have considered: forming a qualified subchapter S subsidiary (QSub). What Is a QSub and Why Consider It? A QSub is a wholly owned subsidiary of your […]
Turn Your Corporate Vehicle into a Tax-Smart Asset
If your S or C corporation owns a vehicle that you also use personally, there are important tax rules you need to follow—and smart planning can help you save significantly. Read further to learn how to handle your corporate vehicle as a tax asset. Let’s say you use a corporate vehicle 80 percent for business […]
Understanding Excess Business Loss Limits
As you plan for 2025, it’s crucial to understand how recent tax law changes may impact your ability to deduct business losses. One such provision, the excess business loss disallowance rule, could limit how much of your business loss you can deduct in a given year—and delay the tax benefits you expect. What Is the […]
How to Ask Your C or S Corporation for Travel Reimbursements
Here’s a short note on your payments of corporate expenses and the process for receiving travel reimbursement from your C or S corporation. Your Corporation Is a Separate Legal Entity As a business owner operating through a corporation, you need to remember that the corporation is a distinct legal entity separate from you. Ensuring proper […]
Converting Your Partnership into an S Corporation Tax-Free
Let’s say you’re considering converting your partnership into an S corporation. The reason might be to reduce exposure for you and the other owners to Social Security and Medicare taxes, which come in the form of the self-employment tax for partners. Specifically, each partner’s share of net partnership income is usually fully exposed to the […]