The Basic Financial Plan

While much has been written about the importance of having a financial plan, still many if not most people don’t even do basic financial planning. Utilizing a professional planner such as a CPA or CFP® professional can be beneficial to the process. However, many will not spend the money to do so. This does not mean most of us can not start with a basic approach.

The Basic Financial Plan2020-09-03T09:11:05-05:00

Meals and Entertainment (2018 Changes)

The Tax Act in 2018 has changed the deductibility of meals and entertainment expenses. Most businesses will now need to track the meals and entrainment expenses in multiple account classifications. Based on public comments from the IRS, and other information, the following is a reasonable understanding of what the deductibility of meals and entertainment, if any, is allowed starting in 2018.

Meals and Entertainment (2018 Changes)2018-08-27T14:04:36-05:00

Business Succession For The Privately Held and Family Business

If you are a privately held business, family owned or not, failing to plan for succession can have a significant negative impact on the preservation of the wealth you have built. A solid succession plan can drive growth, reduce taxes, set the stage for retirement and enhance the ultimate value of your business.

Business Succession For The Privately Held and Family Business2018-08-27T13:33:45-05:00

Reasonable Compensation (Salary) in an S Corporation

The IRS is on the lookout for S Corporations that fail to pay reasonable salaries to shareholders who preform services for the corporation. The failure to pay adequate salary- or no salary at all – to the shareholder-employee is a “Red Flag” for audit by the IRS. It’s important for a S Corporation to properly compensate working shareholders to avoid a big employment tax bill in the future along with interest and penalty. The key to establishing a reasonable salary is determining what the shareholder does for the S Corporation. Initially, we need to understand the source of the S corporation's gross receipts.

Reasonable Compensation (Salary) in an S Corporation2020-09-03T09:12:31-05:00
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