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I have a client's client who is part of an S-corp and C

I have a client's client who is part of an S-corp and C corp. My client sold them life insurance. Lots of life insurance. She has the idea of deducting life insurance as corporate expense, and thinks she can do it for c-corp, not s-corp. But the beneficiaries are individuals. There are three people in the two corps, husband, wife and key employee. Now, I would think either an s corp or a c corp could insure a key employee as a business expense IF AND ONLY IF the Corp was the beneficiary of the insurance policy.Is there some other way this could be done???Of course, if corp is beneficiary, the income of a policy pay-out would be income and taxable, whether s-corp or c-corp. For C corp it would be corporate income tax and if dividends paid to individuals, these individuals would be subject income tax on the dividends.. For S corp all profit (income less expense) would flow through to individuals and be taxed. Am I correct? Is there any other way of doing this?Is there some insurance trick I am unaware of?

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PDtax

Owner

Master's Degree

 
6,658 satisfied customers
If a partner is a limited partner in an LLC partnership, are

If a partner is a limited partner in an LLC partnership, are they allowed to deduct UPE on their personal return or do they need to be a general partner or managing member of the LLC?

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emc011075

Tax advisor and Enrolled Agent

Bachelor's Degree

 
3,516 satisfied customers
If a business buys a builidng and there is an oil tank and

If a business buys a builidng and there is an oil tank and other remidition things that need to be done after the building is purchased, should that amount be depreciated, expenses or just added to the basis of the building purchase?

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

 
16,278 satisfied customers
I just started a new business and I have a few questions. I

Hello,I just started a new business and I have a few questions. I currently work as a contractor (1099) at a company in NYC, Mckinsey and Company. Mck will be paying me directly to the new company i recently formed. My company name is ***** ***** Ive been working with Mck for the past year and have been getting paid directly to my personal bank account, they also do not take out taxes for me, i withhold them myself and pay at the end of the year. But now they will be paying Slash Codes. I live in NJ and work in NYC. My company was also formed and based in NJ.My questions are:1. How much do i pay myself? I currently make $70/hr and im trying to understand the bigger picture here of how I'm, me as an individual, will get taxed and my company will get taxed.2. Are there any benefits of having them pay my company directly and what kind of tax benefits can i expect?3. I'm not sure if im registered as S-Corp, but i've been seeing there's a difference in taxation with something call S corp?

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emc011075

Tax advisor and Enrolled Agent

Bachelor's Degree

 
3,516 satisfied customers
I am entering vehicle expenses in turbo tax car as a work

I am entering vehicle expenses in turbo tax for my car as a work deduction. It asks me to enter my "total expenses" for gasoline for the year. Should I enter only the amount I used for work or the amount I paid for all gasoline expenditure for the year?

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Barbara

Enrolled Agent, Paralegal

 
4,688 satisfied customers
I am a physician and most of my income is salary and bonus

I am a physician and most of my income is salary and bonus from the PC that I am 100% owner. I also have income from reading tests that comes into an separate LLC that I am sole member. I also have significant rental income that I run through another separate LLC that I am sole member. I want to buy a boat for $435,000 and use it for charter. I will form a new LLC and start a separate Charter Company. I doubt the charter revenue will be more than $50,000 per year. So the charter company may not make any profit. Can I take the entire $435,000 from the Section 179 deduction for my charter business and use it against w-2 income and other LLC income (including passive income). The total deduction may exceed my total 1040 income.

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Megan C

Master's Degree

 
29,934 satisfied customers
What are the taxes involved: a) if a US company has 1m in

what are the taxes involved:a) if a US company has 1m in profits in 2016 and before the end of the year the company spends 1m in the acquisition of shares of a foreign company.b) if a US company has 1m in profits in 2016 and before the end of the year the company spends 1m in the acquisition of copyrights from a foreign company.

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

 
16,278 satisfied customers
My client has LLC (partnership tax treatment). Based on the

My client has LLC (partnership tax treatment). Based on the operating agreement one of his partners needs to be reimbursed for health insurance.1. In 2015 partnership did not have any income (only expenses) and he paid insurance from his personal account2. Partners agreed to treat payment as loan and have him reimbursed for insurance payments when company makes money3. Do we report it as guaranteed payments?4. If yes, do we report it on K-1 box 4 and box 13 (M).

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Lev

Retired

Bachelor's Degree Equivalent

 
24,192 satisfied customers
As a business owner, what are the guidelines a vacation and

As a business owner, what are the guidelines for taking a vacation and deducting it as a business expense? I've read the IRS rules and they seem a bit vague aside to say the PRIMARY reason must be business related and you can deduct 50% of the cost of meals.For instance:One of my partners was invited by several people to go on a trip. The people inviting are in a field in which they could refer business to my company. The activities planned are not educational or business related.However, the partner plans to stop at a few stores similar to the business we own so she can deduct the trip (have the company pay her expenses).

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Robin D.

Vocational, Technical or Trade School

 
20,252 satisfied customers
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