What is reasonable compensation for s-corp owners?

What is reasonable compensation for s corp owners

What is reasonable compensation for s corp owners? Section 162 of the tax code states, “a reasonable allowance for salaries or other compensation for personal services actually rendered,” but what does this mean for your s-corp owner compensation? The term you will hear repeatedly when it comes to S-corp owners and compensation is, “reasonable.” The…

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Best College Savings Plan

best college savings plan

There are several options for college savings plans. The best plans offer flexibility in saving, tax-free growth, and a wide range of investment options. In my opinion, the 529 college savings plans and the Coverdell Education Savings accounts are among the top plans. However, the Coverdell ESA usually offers more investment options than the 529…

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Can you do a Roth conversion with stocks?

The Roth conversion can be done in a few different ways.  The Roth IRA conversion I’m talking about here is moving stocks, bonds, ETFs, or mutual funds from the traditional IRA to the Roth IRA. While you can move property such as stocks from the traditional IRA to the Roth IRA there are a few…

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How to start planning for retirement at age 25

In this post, I’m talking about how to start planning for retirement at age 25. So if you’re starting your retirement planning.  We have you covered. And if you’re looking for the basics in retirement planning, you’ve come to the right place. Table of Contents Why Age 25? Age 25 is a starting point. It’s…

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Should I own an S-Corp to save taxes?

How many S-Corps should you have?  Is one enough?  Multiple? Or should you skip the s-corp altogether? I will only focus on the taxes and retirement savings when it comes to the s-corp and not any legal or shareholder benefits. S-Corporations are great for small business taxes, but you need to know how those taxes…

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