Author Topic: any accountants out there that i can ask a question?  (Read 490592 times)

Offline avrumy

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Re: any accountants out there that i can ask a question?
« Reply #540 on: November 11, 2015, 10:58:19 AM »
if they reclass anything you will pay interest, penalties you MAY be able to fight
Source? I am in the field

Offline jackofall

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Re: any accountants out there that i can ask a question?
« Reply #541 on: November 11, 2015, 11:02:37 AM »
New question: The HR guy at work tells me it's no longer possible to have my insurance paid pretax unless I'm getting insurance through my employer. Because my insurance is through the exchange, I'm ineligible.

Can anyone confirm or deny?
I believe if your employer offers a qualifying plan your not allowed to go through the exchange.
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Offline Dawie

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Re: any accountants out there that i can ask a question?
« Reply #542 on: November 11, 2015, 11:06:16 AM »
Source? I am in the field
experience

Offline Dawie

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Re: any accountants out there that i can ask a question?
« Reply #543 on: November 11, 2015, 11:11:20 AM »
New question: The HR guy at work tells me it's no longer possible to have my insurance paid pretax unless I'm getting insurance through my employer. Because my insurance is through the exchange, I'm ineligible.

Can anyone confirm or deny?
There are a couple reasons for this, the main one being that section 105 medical reimbursements have been made now "illegal" , an unintended consequence of obamacare and subject to a $100 a day penalty
https://www.calt.iastate.edu/article/updated-health-reimbursement-plans-not-compliant-aca-could-mean-exorbitant-penalties

Offline Bostener

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Re: any accountants out there that i can ask a question?
« Reply #544 on: November 11, 2015, 11:46:42 AM »
Currently I get paid with a 1099. Is there any legitimate way to save some $ on social security tax if I change from a schedule C to incorporating myself (LLC or S Corp) and then paying myself a salary with the remainder being a distribution?
Your question is beyond the scope of a ddf discussion. Your question depends on many factors.
Don't save the money for a good consultation.
You may save by incorporating but if it's not done correctly it could cost you big time.
I have seen so many ceases where the IRS reclassified and cases that where set up wrongly and the owner over paid. So don't save now on the accounting fee and set it up correctly by getting professional advice.

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Offline Bostener

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Re: any accountants out there that i can ask a question?
« Reply #545 on: November 11, 2015, 11:51:22 AM »
Anyone knofw what the tax implications would be for moving from NYC to anywhere in NJ if my job is in NJ?
You will pay the NJ tax rate and stop paying NYS & NYC rate
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Offline Dawie

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Re: any accountants out there that i can ask a question?
« Reply #546 on: November 11, 2015, 12:02:41 PM »
Your question is beyond the scope of a ddf discussion. Your question depends on many factors.
Don't save the money for a good consultation.
You may save by incorporating but if it's not done correctly it could cost you big time.
I have seen so many ceases where the IRS reclassified and cases that where set up wrongly and the owner over paid. So don't save now on the accounting fee and set it up correctly by getting professional advice.
+10000

Offline yr

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Re: any accountants out there that i can ask a question?
« Reply #547 on: November 11, 2015, 02:36:31 PM »
You will pay the NJ tax rate and stop paying NYS & NYC rate

Is NJ lower than the NYS?

Offline MarkS

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Offline Bostener

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Re: any accountants out there that i can ask a question?
« Reply #549 on: November 11, 2015, 03:14:16 PM »
Anyone know what the tax implications would be for moving from NYC to anywhere in NJ if my job is in NJ?
In some rare cases you may also qualify for moveing credit or some deductions. Speak to a CPA.
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Offline yomo

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Re: any accountants out there that i can ask a question?
« Reply #550 on: November 11, 2015, 03:15:35 PM »
IMHO if you're an S corp technically you could take a distribution fica free.

But you can't be an active employee of the corp and take your salary as a distribution. Unless you think the IRS was born yesterday...
You could take a partial salary and partial distribution.


See here https://turbotax.intuit.com/tax-tools/tax-tips/Small-Business-Taxes/How-an-S-Corp-Can-Reduce-Your-Self-Employment-Taxes/INF22938.html

Disclaimer:
I don't do taxes..
All opinions my own. <img src="http://s3.amazonaws.com/tapatalk-emoji/emoji4.png" />

Thanks for sharing. When mentioning this to may accountant he advised that this may be legitimate only for certain types of businesses. For instance, someone who buys and sells goods as a sole proprietor can create an S corp and take some earnings/profit as a salary and some as a distribution. The grey area there is what percentage is reasonable to take as salary. In my case though, where I earn "commissions" for "services" provided, by definition all of that income is subject to SS as its essentially considered "wages" and nor "business profit" or "capital gains"
What do you think?
Is this true?

Offline yomo

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Re: any accountants out there that i can ask a question?
« Reply #551 on: November 11, 2015, 03:17:27 PM »
if the money is paid to the s-corp there would be no 1099
your spouse can own the s-corp and pay you any salary
Plus then you could use the s-corp to pay health insurance (if that was an issue)
I don't believe we would be eligible to buy a company insurance policy unless we hired someone who's a non-relative

Offline yomo

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Re: any accountants out there that i can ask a question?
« Reply #552 on: November 11, 2015, 03:19:14 PM »
I see many people do this. Its a grey area. I say do it with the understanding you one day may have to pat the SS tax. Your no worse off then you are now.
Why not? won't I be subject to years of interest (potentially high rates) and penalties?

Offline yomo

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Re: any accountants out there that i can ask a question?
« Reply #553 on: November 11, 2015, 03:20:44 PM »
if the money is paid to the s-corp there would be no 1099
your spouse can own the s-corp and pay you any salary
Plus then you could use the s-corp to pay health insurance (if that was an issue)
Any reason to make my wife the owner?
From here it would seem that there would be no added benefit:

https://turbotax.intuit.com/tax-tools/tax-tips/Small-Business-Taxes/How-an-S-Corp-Can-Reduce-Your-Self-Employment-Taxes/INF22938.html

Offline Bostener

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Re: any accountants out there that i can ask a question?
« Reply #554 on: November 11, 2015, 03:23:10 PM »
I don't believe we would be eligible to buy a company insurance policy unless we hired someone who's a non-relative
Why do you "believe"?
Just look up if a sub chapter S Corp can buy insurance to a 100% share holder and you will see very clear what the rule is.
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Offline Bostener

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Re: any accountants out there that i can ask a question?
« Reply #555 on: November 11, 2015, 03:25:06 PM »
Let me make it easier for you. Look for the instructions of form 1120S.
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Offline Dawie

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Re: any accountants out there that i can ask a question?
« Reply #556 on: November 11, 2015, 03:25:37 PM »
I don't believe we would be eligible to buy a company insurance policy unless we hired someone who's a non-relative
depends on the Insurance company, and possibly even buy on the exchange
the real winner would be if the other spouse gets a plan through their job and only they are covered so the s-corp could do a section 105 medical reimbursement to pay the difference
one employee (owner) owned companies are exempt from the new $100 a day penalty on medical reimb.

Offline Dawie

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Re: any accountants out there that i can ask a question?
« Reply #557 on: November 11, 2015, 03:28:28 PM »
Any reason to make my wife the owner?
From here it would seem that there would be no added benefit:

https://turbotax.intuit.com/tax-tools/tax-tips/Small-Business-Taxes/How-an-S-Corp-Can-Reduce-Your-Self-Employment-Taxes/INF22938.html
the wife owner idea would actually work in an LLC better, but even for an S-corp the IRS looks at a reasonable salary, if SHE isn;t working then she doesn;t need as reasonable a salary as he would, possibly

Offline Bostener

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Re: any accountants out there that i can ask a question?
« Reply #558 on: November 11, 2015, 03:29:40 PM »
Why not? won't I be subject to years of interest (potentially high rates) and penalties?
Plus paying someone to represent you in front of the IRS.
Airlines sending me "We're in this together" emails.

Bruh, where were you when my suitcase weighed it 51.50 pounds?

Offline yomo

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Re: any accountants out there that i can ask a question?
« Reply #559 on: November 11, 2015, 03:32:35 PM »
Why do you "believe"?
Just look up if a sub chapter S Corp can buy insurance to a 100% share holder and you will see very clear what the rule is.
I'm relying on the expertise of 2 insurance brokers. If the info they gave is inaccurate many people will be in trouble for many reasons