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Checkbook IRA

Checkbook IRA

A recent case has shed light on one of the riskiest retirement plan strategies put forth by promoters. In McNulty v. Commissioner (157 T.C. 10) a U.S. Tax Court brought clarity to the scheme of using self-directed IRAs for personal investments.

Piercing the Corporate Veil – How to Avoid It

Piercing the Corporate Veil – How to Avoid It

50% of piercing the veil court cases nationwide succeed because owners are failing to properly follow corporate formalities. This exposes business owners to personal liability - meaning they can lose their possessions. What is the Corporate Veil? What is the corporate...

The Wyoming DAO LLC

The Wyoming DAO LLC

A DAO is an organization operated by a smart contract, which is a computer code running within the blockchain. The ‘A’ for Autonomous refers to the self-executing nature of it all.

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.

Checkbook IRA

Checkbook IRA

A recent case has shed light on one of the riskiest retirement plan strategies put forth by promoters. In McNulty v. Commissioner (157 T.C. 10) a U.S. Tax Court brought clarity to the scheme of using self-directed IRAs for personal investments.

Piercing the Corporate Veil – How to Avoid It

Piercing the Corporate Veil – How to Avoid It

50% of piercing the veil court cases nationwide succeed because owners are failing to properly follow corporate formalities. This exposes business owners to personal liability - meaning they can lose their possessions. What is the Corporate Veil? What is the corporate...