S Corporation »
Sub chapter S, or “S Corporations,” are a very popular entity type for businesses. Over 4.5 million S Corporation returns were filed with the IRS in 2010. But what is an S corporation and why is it so popular? The major tax benefit of electing to be treated as an S Corporation is that S Corporations are taxed as a pass-through entity wherein all income, losses, deductions, and credits are passed-through to the S Corporation shareholder and reported on the shareholder’s individual tax return. Learn about additional benefits of S Corporation election by reviewing our manuals and other information below.
Top Takeaways 1. Can deduct ordinary and necessary business-related expenses In general, you can deduct ordinary and necessary business-related expenses for traveling away from home, entertaining clients and customers, and giving gifts to customers,Read More »
The U.S. Tax Court recently held that twelve McDonald’s franchise owners were not attempting to avoid taxes by purchasing shares in an S Corporation and were allowed a deduction for $2,969,000. In the lateRead More »
Top Takeaways 1: S Corporation can terminate through revocation There are a variety of ways an S Corporation can terminate its S corporation election. First, an S Corporation may terminate by revocation, if moreRead More »
In a case of first impression, the U.S. Tax Court held that an S Corporation is not qualified to take the popular first-time homebuyer tax credit. The first-time homebuyer tax credit was a non-refundableRead More »
Should you operate your small business as a Limited Liability Company (LLC) or as an S corporation? Ever since LLCs were permitted a few years ago, many new businesses have been told that itRead More »
An S corporation shareholder cannot be a Roth Individual Retirement Account (Roth IRA) according to the Ninth Circuit, affirming a U.S. Tax Court decision (Taproot Administrative Services, Inc., No. 10-70892 (9th Cir. 3/21/12), aff’gRead More »