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.
Business Entertainment, Travel and Gift Expense Deductions
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,
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McDonald’s Franchise Owners Allowed Deduction to Correct Abusive Tax Scheme
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 late
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S Corporation Termination
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 more
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S Corporation Does Not Qualify For First-Time Home Buyer Credit
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-refundable
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Should You Operate As An LLC Or As An S Corporation in California?
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 it
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S Corporation Shareholder Cannot Be a Roth IRA
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’g
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