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Are You a California Resident?

Are You a California Resident?

Many people believe that as long as they are outside the state of California for six months and a day they are not residents of California. And thus don’t have to pay California’s high income taxes. But the state of California is both broke and arrogant. And they make the rules the way they want.

Design Your Asset Protection Plan

Design Your Asset Protection Plan

You design a lot of things in your life. The layout of your house, the flow of your business, the requirements on your children, and many more scenarios are all elements of conscious design. Asset protection is no different. There is an architecture, a cohesive...

Corporate Opportunities

Corporate Opportunities

Does the Rule Apply to Real Estate? If you invest in and/or syndicate real estate what are the duties to your investors? You owe them a duty of loyalty. But how far does that go? The issue of corporate opportunities is important. I wrote a whole chapter on it (from...

7 Business Insurance and Tax Deductions

Here are seven business insurance items that could be worth a tax deduction. According to the IRS, you can generally deduct premiums for these types of insurance which are related your business:

  • Insurance covering losses from fire, storm, theft, accident or similar events.
  • Credit insurance that covers losses incurred from bad business debts.
  • Group health insurance plans for employees, including long-term care insurance.  Note that a partnership which pays accident and health insurance premiums for its partners can generally deduct them as guaranteed payments to partners, and that an S corporation paying accident and health insurance premiums for its more than 2 percent shareholder-employees can generally deduct these costs but must include them as shareholder wages on the W-2, subject to withholding taxes.
  • Liability insurance premiums are tax deductible.
  • Premiums for malpractice insurance covering personal liability for professional negligence resulting in damage are tax deductible.
  • Worker’s compensation insurance set by state law for job-related injury or disease. In a partnership, you may deduct these costs as guaranteed payments to partners. In an S corporation, for shareholder-employees, you can generally deduct these costs but must include them as shareholder wages on the W-2, subject to withholding taxes.
  • State unemployment insurance taxes are deductible.

If you haven’t met with an insurance professional to analyze the risks you face, the available insurance coverages and the costs involved, now is always a good time to do so.

Are You a California Resident?

Are You a California Resident?

Many people believe that as long as they are outside the state of California for six months and a day they are not residents of California. And thus don’t have to pay California’s high income taxes. But the state of California is both broke and arrogant. And they make the rules the way they want.

Design Your Asset Protection Plan

Design Your Asset Protection Plan

You design a lot of things in your life. The layout of your house, the flow of your business, the requirements on your children, and many more scenarios are all elements of conscious design. Asset protection is no different. There is an architecture, a cohesive...