Tax Smart Hustlers

Ep. 04 | All About Accountable Plans

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Title: Tax Smart Hustlers Podcast - Episode 4: All About Accountable Plans

Hosted by: Aaron Siegel, Tax Strategist, Thrive Tax Solutions

Episode Summary:

In Episode 4, Aaron Siegel dives deep into the world of accountable plans, particularly crucial for individuals transitioning from a Schedule C business to an S corporation. This episode breaks down the essentials of accountable plans, ensuring compliance with IRS requirements and maximizing tax benefits.

Key Topics Covered:

  1. Introduction to Accountable Plans:

    • Understanding the purpose and importance of an accountable plan in an S corporation.
    • Overview of IRS requirements for accountable plans and reimbursement of business expenses.

    • Key Requirements of Accountable Plans:

      • Business connection of expenses.
      • Substantiation of expenses with receipts or proof.
      • Refunding excess payments to the business.

      • Specific Expense Areas and How to Manage Them:

        • Car and truck expenses: Choosing between standard mileage rate or actual expenses, and the importance of maintaining mileage logs.
        • Home office expenses: Guidelines for claiming home office expenses and the role of depreciation in tax calculations.
        • Shared expenses (e.g., internet and cell phone use): Strategies for reasonable allocations and the benefit of having separate business and personal lines.

        • Health Care Benefits in S Corporations:

          • How to ensure health insurance premiums remain deductible in an S corporation setting.
          • The importance of having the S corporation pay these benefits costs directly.

          • Timely Reimbursement and Documentation:

            • Understanding the 30, 60, 120-day rule for reimbursements.
            • The importance of timely and accurate documentation for reimbursements.

              • Conclusion:

              • A summary of the importance of accountable plans in S corporations.
              • Encouragement to stay compliant and avoid potential pitfalls.

                • Contact Information:

                • Social Media: @TrustYourTaxes
                • Email: [email protected]
                • Website: taxsmarthustlers.show

                  • Listener Engagement:

                  • Request for listener feedback and suggestions for future episode topics.
                  • Invitation to rate and review the podcast.

                    • Disclaimer:

                    This podcast provides educational information only and should not be considered as professional tax advice.

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                    Tax Smart HustlersBy Thrive Tax Solutions