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Home Archives for John Marsh, CPA

Health Insurance for S Corporation 2 % Shareholders

Posted on December 12, 2013 Written by John Marsh, CPA Leave a Comment

The cost of health insurance premiums paid by an employer is usually excluded from taxable income on the employee’s W-2. A more than 2% shareholder of an S corporation is not eligible for this exclusion. However, the 2% shareholder may be able to … [Read more...]

Filed Under: Business, Tax Tips Tagged With: ACA, Deductions, Health Insurance, S Corps

Group-term Life Insurance W-2 Inclusion

Posted on December 6, 2013 Written by John Marsh, CPA Leave a Comment

Many employers provide life insurance as a benefit to their employees. This benefit can generate taxable income which must be included in the employees’ W-2s. What is group-term life insurance? Life insurance must meet the following conditions to … [Read more...]

Filed Under: Payroll, Tax Tips Tagged With: Benefits, Employees, Life Insurance, Withholding

Partnership Tax: Technical Terminations

Posted on November 22, 2013 Written by John Marsh, CPA Leave a Comment

A partnership can terminate for federal income tax purposes without the partners knowing it. This is called a technical termination, and can expose the partnership to costly late-filing penalties. What is a technical termination? Technical … [Read more...]

Filed Under: Business, Tax Tips Tagged With: Partnerships

Self-employment Tax

Posted on November 14, 2013 Written by John Marsh, CPA Leave a Comment

Employees pay social security and Medicare taxes on their wages. Self-employment (SE) tax is the equivalent tax paid by self-employed individuals. In this post we’ll discuss the rate of SE tax; types of income subject to it; how to report it; … [Read more...]

Filed Under: Individual, Tax Tips Tagged With: SE Tax

Individual Taxes: Withholding, Estimated Payments, and Underpayment of Estimated Tax Penalty

Posted on November 8, 2013 Written by John Marsh, CPA Leave a Comment

Individuals who owe tax with their Form 1040 or extension might owe more than they expected. The federal income tax is a pay-as-you-go tax. If you wait until you file your return to pay your tax, penalties may apply. There are two ways to pay as you … [Read more...]

Filed Under: Individual, Tax Tips Tagged With: Estimated Tax, Withholding

Tax Deductions: Real Estate Professionals and Rental Losses

Posted on October 31, 2013 Written by John Marsh, CPA Leave a Comment

In a previous post we explained that rental losses are generally considered passive, and may not be deductible against non-passive income. Most individuals can only deduct up to $25,000 of rental losses against non-passive income, and that amount … [Read more...]

Filed Under: Individual, Tax Tips Tagged With: Deductions, Passive, Rentals

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