Categories
What is a reasonable salary?
Thu, 08/04/2011 - 15:11 | by Sandy SoderstedtWhat is a reasonable salary?
This question is one that any entity may be faced with, but for S corporations, it is becoming a hot topic. In 2009, a U.S. Government Accountability Office report noted that the combined 2003 and 2004 underreported shareholder compensation was $24.6 billion for corporations with fewer than three shareholders being responsible for nearly all of that. How is that relevant to the IRS?
Rental Real Estate Activities
Fri, 05/20/2011 - 10:00 | by Bob Parks CPAThe IRS has recently issued internal memos that appear to be focusing on increasing audits of rental real estate activities. The Treasury Inspector General for Tax Administration examined tax returns from 2001 and has found that many rental real estate owners are underreporting the taxable income from those activities. They are recommending an increase in the auditing of rental activities in the future.
STATE NEXUS
Thu, 11/04/2010 - 15:10 | by Sandy SoderstedtSounds strange, but it’s just a way of saying you have created a connection with a State. Those business connections can create taxable issues and those connections are easier to create than you may think. In a recent study, 95% of companies underestimated their nexus footprint.
ROTH IRA CONVERSIONS
Fri, 10/29/2010 - 14:58 | by Bob Parks CPAUnder a change in the IRS regulations, the IRS is allowing individuals to rollover Regular IRA's into Roth IRA's up until December 31, 2010. The conversions will cause the taxpayer to show the rollover amount as income and to be taxed on that income in 2010, or prorated 50% to 2011, and 50% to 2012. The change applies to all individuals regardless of their level of income. Previously, individuals were only allowed to convert their IRA's to Roth IRA's if their adjusted gross income was under $ 100,000.00.
