How can 50/50 shareholders of an S corp take different distributions of income and not have tax implications that are different than the actual amount taken? Specifically, can unequal distributions be structured as loans or payroll advances, or must they balance out to 50/50?

October 3rd, 2024

As an owner of a single-member LLC operating as an S-Corporation, am I eligible to contribute to a SEP (Simplified Employee Pension) plan, and if not, how do I correct past contributions made based on incorrect advice?

September 20th, 2023

I just found out that I still have a 1099R, but I already filed my tax returns. What should I do?

April 2nd, 2024

I have a client who is filing 2014 and 2015 taxes. He has some thousands of dollars in penalty for 2014 and is eligible for a first-time abatement of penalty. Should I file for this when I file the tax return? Do I need to have a POA to do so?

May 11th, 2024

A single-member LLC, taxed as an S-Corp, reported a $10K loss for 2014 and a $9K loss for 2015. The company is closing in 2016 with no assets or liabilities. The member did not perform basis limitation calculations. The company equity at the end of 2014 was $8K, attributable to the member. Questions: 1) Is it correct that the member's basis is measured after the loss, even though the losses were funded through contributions? 2) If the individual amends prior tax returns to suspend losses and shows zero basis for 2015, can they unsuspend the losses when the company is dissolved? 3) Are unreimbursed expenses reported on Schedule A also limited by basis?

November 7th, 2024