Les Smeach
You Don’t Have To Be a Manufacturer To Take The “Manufacturers’ Deduction”
The manufacturers’ deduction, also called the “Section 199” or “domestic production activities deduction,” is 9% of the lesser of qualified production activities income or taxable income. The deduction is also limited to 50% of W-2 wages paid by the taxpayer that are allocable to domestic production gross receipts. Yes, the deduction is available to traditional [...]
Business Valuations. What is the Purpose?
Business Valuation assignments vary depending on the purpose. Therefore, it’s imperative to understand the purpose of the valuation before the process starts. Generally, the purpose will determine the Standard of Value, the methods used and the level of background and research needed. Valuations can be for a whole business, a factional interest or a certain [...]
How To Verify That a Charity is Eligible to Receive Tax-Deductible Contributions
Donations to qualified charities are generally fully deductible, and they may be the easiest deductible expense to time to your tax advantage. After all, you control exactly when and how much you give. But before you donate, it’s critical to make sure the charity you’re considering is indeed a qualified charity — that it’s eligible [...]
Amounts Distributed From S-Corporation can be “Return of Capital” Rather Than Salary
In a recent case the IRS attacked the unreasonably low salary paid to a shareholder from the S Corporation. Based on empirical evidence and professional judgment the expert for the IRS determined that out of total distributions paid to the shareholder from the S Corporation of $227,651 and $199,470 in 2002 and 2003, $91,000 [...]
Financial Planning Timeline for Rest of 2012
July 2012 Is your insurance up to date and suited for your needs? Insurance policies – life, property, auto, health, disability, and perhaps long-term care – need periodic reviews. Check your investments, taxable and retirement, and adjust the allocation to meet your goals. Check your Budgeting. Is it working? August 2012 [...]
