What is the federal income tax treatment of employer provided group insurance?
The federal income tax treatment of employer provided group medical expense insurance can be accurately described as Employee premiums paid by the employer is tax deductible to the employer as a business expendinture
How do you treat a passthrough Corporation for federal tax purposes?
Treat all corporations as passthrough entities for federal tax purposes. b. Enact tax legislation that would make dividends nontaxable to all of the corporation's shareholders. c. Allow corporate shareholders a credit on their tax returns for the taxes paid by the corporation on the profits currently distributed to shareholders as dividends.
Are there any tax questions about an LLC?
Because LLCs are a relatively new organizational form, many tax questions concerning their operation have yet to be resolved. Which of the following statements regarding the home office deduction is true? a. The home office deduction is limited to the taxable income of the business before the deduction.
How much does Loretta withdraw from Country Collectibles?
Country Collectibles has been in existence for five years and has earned a profit every year. Loretta withdraws $100,000 cash from the S corporation each year.
Is Travis and Gwen taxable?
Gwen and Travis organized a new business as an LLC in which they own equal interests. The new business generated a $10,000 operating loss its first year. Travis has no other taxable income for the current year, but expects to have sufficient taxable income in future years to pay tax in the 24% tax bracket.
Is Loretta's withdrawal taxable?
The withdrawals are considered taxable dividends to Loretta. c . There is significant risk that the IRS could recharacterize the payments to Loretta as salary. Such treatment would not change taxable income for Loretta and reduce taxable income of the S corporation.