Tax Nuances/Deductibility of Fringe Benefits of S Corporations or LLC's That Have Elected to be Taxed as an S Corporation

Tax Nuances/Deductibility of Fringe Benefits of S Corporations or LLC's That Have Elected to be Taxed as an S Corporation

For S Corporations or LLC's who have been elected to be taxed as an S Corporation there are certain tax nuances for all those owners who own more than two percent of the company. Tax law has long held these rules, though their application has varied somewhat over the years:

-In order for the business to deduct medical insurance premiums paid on behalf of you that you have to have a W-2 of the same amount or more.

-In the event you have a disability claim, you will have to report the disability payments/benefit as taxable income as your corporation has been deducting the payments. Conversely, if you opt to payment the disability premiums personally and not receive a tax deduction, then benefit payments received under a disability plan would not be taxable.

To learn more about addressing IRS Tax Issues and Back Tax Returns visit http://www.hiscpa.com/working-with-the-irs.html

John Dillard is an Christian Speaker/Author and Certified Public Accountant in Duluth, GA. To See how he takes Christ along with him to work visit http://www.hiscpa.com/ and for his latest book Overcoming Life's 9/11's: Job's Journey and a Voice of One: Nehemiah's Prayer visit http://www.john-dillard.com/ or call John Dillard CPA today at 770.814.9304 (All Rights Reserved) Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!