If you’ve done much research on the subject of S corporations, you’ve probably already learned that S corporations may allow shareholder employees to save significant amounts of payroll tax. During the 2004 presidential election, for example, the Wall Street Journal reported that the Democratic … [Read more...] about Setting Salaries for S Corporation Shareholder-Employees
Articles
Responding to an Internal Revenue Service Letter Audit
Taxpayers commonly receive letters, sometimes known as “correspondence examinations” or “letter audits” but also referred to as “CP 2000 notices,” from the IRS demanding additional tax. For this reason, I want to talk briefly about why taxpayers receive these threatening letters and also about … [Read more...] about Responding to an Internal Revenue Service Letter Audit
Tax Tips, Help, and Advice
It’s very difficult for any tax practitioner to give specific tax tips, help or advice without knowing the circumstances of a particular taxpayer’s situation. Good advice ties closely to the specific situation you find yourself in. However, I can provide you with some general help: If you’re an … [Read more...] about Tax Tips, Help, and Advice
State Income Taxes
Washington businesses and residents frequently find themselves filing income tax returns with other states. For example, someone who moves to Washington state during the year will typically owe the state they moved from a part-year resident income tax return. But even long-time Washington … [Read more...] about State Income Taxes
Setting Up A Washington LLC
Setting up an LLC, or limited liability company, in Washington State is extremely easy. You only need to step through a simple, online wizard (available here) or fill out and then submit a simple two page form (available here) in order to form the entity. And both the wizard and the form ask for … [Read more...] about Setting Up A Washington LLC
Rental Property Tax Benefits
Real estate investors typically see three types of rental property tax benefits: Benefit # 1: Depreciation Tax Deductions Federal and state income tax accounting rules allow investors to depreciate real estate improvements (such as the building) over either 27.5 years (in the case of residential … [Read more...] about Rental Property Tax Benefits