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HALLIDAY & COMPANY is interested in helping you achieve your individual and business financial goals. Understanding basic financial and tax concepts will help prevent costly mistakes and allow you to operate as efficiently as possible. For this reason, we publish “ACCOUNT-ABILITY” as a resource of helpful information, which we hope, will benefit you personally and/or as a business owner. |
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E-Mail Halliday@hallidaycpa.com |
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This newsletter offers factual and up-to-date information on the subjects discussed, but should not be regarded as a complete analysis of these subjects. No party assumes liability for any loss or damage resulting from reliance or use of this material. |
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IRS ISSUING PAYROLL WARNINGS FOR S-CORPORATIONS |
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IRS is issuing payroll tax warnings for new S corporations. The letter IRS now sends accepting a firm’s S election contains a caution about owners taking low salaries and pulling out the bulk of the profits as dividends to save big on FICA (self-employment) taxes. The IRS says that, in such cases, it can treat dividends as salary to the extent that owners are underpaid. |
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Business can expense up to $105,000 of the cost of pickup trucks that have a loaded gross vehicle weight rating in excess of 6,000 pounds. Although expensing has been cut to $25,000 for SUVs with loaded weights between 6,000 and 14,000 pounds, heavy pickups are exempt from that limit. To qualify, the vehicle must have a cargo area at least six feet in length separate from the passenger compartment. The cargo hold can be capped.
Heavy vans and small buses get the higher expensing limit as well. An eligible van cannot have seating behind the driver’s seat, and no part of the body can protrude more than 30 inches in front of the windshield. And small buses must have at least nine seats behind the driver’s seat.
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Some heavy pickup trucks still qualify for $105,000 accelerated expense |
