I don’t know how this whole craze started and frankly, or who started the spread of misdirection and misinformation, but the LLC for all of its good and bad is here for the foreseeable future. Thus, I would be remiss not to tackle this important topic set the record straight.
There are several strategies on how to maximize the Home Office Deduction. In fact, there has been a new strategy released by the IRS in 2014 and provides an wonderful basic and simple option for almost every business owner.
There are two major reasons why you may choose to form an S
This is a common question we are asked on a regular basis and
For example, this year (2014) your spouse could contribute up to $17,500 (or $22,500 if over 55) and your Company take a tax deduction for the W-2, while your spouse doesn’t claim any income on the W-2. The exact paycheck to the spouse, and deductible to the Company, is actually $20,178 (for a deferral of $17,500), because the company must withhold and match FICA of 7.65%, for a total of 15.3%. Nonetheless, the ultimate tax benefit is significant due to the ‘time value of money’ and the opportunity of the spouse to create and fund a 401k.
With all of the news coverage, opinions and justifiable confusion with implementation of its final stages, I would like to provide some strategies that can help you through this maze.