• Accountable vs Unaccountable Vehicle Plans

    Two kinds of vehicle plans ACCOUNTABLE PLAN Employee hands employer expense report showing X business miles. Employer reimburses X for that amount up to the approved business mileage rate per mile for that year. Done. Employer gets the deduction. Employee is not taxed. UNACCOUNTABLE PLAN Employee receives X per month with no accounting to the…

  • SUB S OWNERSHIP CHANGE

    If a shareholder terminates his or her interest in an S corporation during the tax year, the S corporation, with the consent of all affected shareholders (including those whose interest is terminated), may elect to allocate income and expenses, etc., as if the corporation’s tax year consisted of 2 separate tax years, the first of which ends…

  • 2018 20% Pass-through Deduction

    MUCH CONFUSION NOW! In general the new tax law allows self-employed and owners of pass-through entities (partnerships and S Corps) to deduct 20% of “qualified business income“. The law is COMPLEX with limitations, exceptions and undefined terms. Needs to define “qualified business income” more clearly.  Specified service entities are subject to high income limitations.  There…

  • Canadian Pensions

    U.S. social security benefits paid to a resident of Canada are taxed in Canada as if they were benefits under the Canada Pension Plan, except that 15% of the amount of the benefit is exempt from Canadian tax. According to the IRS, special tax treatment applies to payments received from the Canadianpension, the Quebec pension plan,…

  • Wanting to Move to a Foreign Country?

    If you move but keep your citizenship, you must still report your worldwide income.  You may be eligible for a Foreign Earned Income Exclusion and a Foreign Tax Credit for what tax is paid to the foreign country… but ALL US CITIZENS must report and maybe pay. The rules on reporting foreign bank accounts still apply.…

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