Title: Tax Smart Hustlers Podcast - Episode 4: All About Accountable Plans
Hosted by: Aaron Siegel, Tax Strategist, Thrive Tax Solutions
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.
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.
A summary of the importance of accountable plans in S corporations.
Encouragement to stay compliant and avoid potential pitfalls.
Social Media: @TrustYourTaxes
Email: [email protected]
Website: taxsmarthustlers.show
Request for listener feedback and suggestions for future episode topics.
Invitation to rate and review the podcast.This podcast provides educational information only and should not be considered as professional tax advice.
