On this Podcast we answer listener questions! If you have a question you would like discussed on a future episode, submit it now!
- Go to www.TaxSavingsPodcsat.com
- Click Podcast
- Scroll to the Bottom and Submit Your Question
You never know, your question may be on the next Q&A session. Below are today’s questions, tune into our Podcast to hear the answers!
Brett: Here’s a question I haven’t found an answer to anywhere on the internet…I am a business owner of an S Corp with a SIMPLE IRA plan. We do an elective 3% match contribution for employees. As owner, this year I am projected to make $200,000. $50,000 of that is in W2 salary, and the other $150,000 is from distributions. Is the 3% employer match based on just the W2 salary portion or can it match the full $200,000 including distributions? Thanks!!
Christine: Do I have to get an EIN number as a Sole Prop to pay my 16 year old for minimal work? He is the only employee I have. Thank you.
Sadie: My husband and I recently started a digital marketing agency. We are a multi-member LLC.
Can we claim our clients ad spend as an expense, and if so, how do we categorize it for tax purposes?
Lacy: Since it’s already late in the year, can I still convert my LLC into an S Corp? Is that an audit red flag?
Shaquita: If I have a business that has a location outside of my home but also do part of my work from home, could any part of adding an addition to my home be tax deductible?
Richard: What happens if I do not take a reasonable salary for my S Corp? I currently have not ran payroll this year or last year.
Jordan: My business has lost money the past 3 years but things are looking to turn around this year. Can I use those prior losses or are they gone?
Danielle: Is anyone familiar with 1099ing a mechanic? I’ve tried to do some research but it isn’t very clear. I’ve been told we can’t because it would be a nightmare. Then I’ve read that we can. I’m very confused!
Josh: I own a landscaping business taxed as an S Corp. I’m looking to hiring my kids (8 and 10) but just don’t know what to do to ensure I’m doing everything correctly. Please help!
Anonymous Facebook Group Member: Wife is a third year real estate salesperson(agent) in CA. She has done much better this year compared with prior years. She likely gross $250k in commission. Operating as an llc, S-Corp status, pays herself as only w-2 employee. Will probably have about $150k in pass through profit. Don’t really want to pay too much in taxes. Need strategy suggestions to count towards deductions. Thanks.
Anonymous Facebook Group Member: I have an LLC (taxing as S-Corp). I accidentally paid my 1040ES (estimated personal tax) from my business account. Can I set this transaction as owner draw? Thanks
