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4 Ways to Determine How To Pay Yourself From an S Corp
paying tax s corp

4 Ways to Determine How To Pay Yourself From an S Corp

  • May 24, 2021
  • by gbs
  • No Comments

Small and mid-sized business tax preparation can be complicated, especially for those who have opted to run their business as an S Corp. Though converting to an S Corpenables businesses to save more money through taxation than a sole proprietorship, the IRS regulations around it are what makes it complex to navigate.

A benefit of an S Corp is the distributions you receive as an owner do not have payroll taxes withheld. However, the IRS requires the owner to become an employee for tax purposes, and, on top of that, take a “reasonable salary”. Over or underpaying yourself, or misrepresenting a salary as distributions, could result in costly penalties.

COVID-19 Update 3.25.2020

  • March 25, 2020
  • by gbs
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The Treasury Department and Internal Revenue Service announced the federal income tax filing due date is automatically extended from April 15, 2020, to July 15, 2020.  We are continuing to work and complete as many tax returns as we can…

COVID 19 Letter 3.16.20

  • March 16, 2020
  • by gbs
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Dear Clients and Friends, As the current situation surrounding the outbreak of the coronavirus (COVID-19) continues to evolve, please know that the health and well-being of our clients and staff is a top priority at Scharf Pera & Co., PLLC….

2019 – 04/23 – Casualty loss deductions: You can claim one only for a federally declared disaster

2019 – 04/23 – Casualty loss deductions: You can claim one only for a federally declared disaster

  • April 23, 2019
  • by Kelly Frazier
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The rules for writing off personal casualty losses on a tax return have changed for 2018 to 2025. Specifically, taxpayers generally can’t deduct losses unless the casualty event qualifies as a federally declared disaster. (The rules for business or income-producing…