We specialize in bookkeeping, payroll, income tax return preparation, and retirement planning, and serve a nationwide clientele consisting of individuals and businesses of all types and sizes (LLC, partnerships, C & S Corporations), as well as trusts and estates. As financial problem solvers, we provide practical advice and proactive solutions with personalized service. We are affordable, experienced, and friendly, and we tirelessly study and research the ever-changing world of tax law and regulation so that we can help every client realize the greatest possible savings and return on investments. Our office is conveniently located in Dover, Delaware. Please contact us today to find out more about how we can make YOUR life less taxing!Tax
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๐๐ผ๐ ๐ฑ๐ผ ๐ ๐๐ฒ๐ ๐๐ฝ ๐ฎ๐ป ๐๐ฐ๐ฐ๐ผ๐๐ป๐๐ฎ๐ฏ๐น๐ฒ ๐ฃ๐น๐ฎ๐ป ๐ณ๐ผ๐ฟ ๐บ๐ ๐ฆ ๐ฐ๐ผ๐ฟ๐ฝ?
To set up an Accountable Plan for your S corp, start with these four steps:
1. Adopt a formal written plan that spells out eligible expenses, deadlines, and documentation requirements.
2. Create a monthly expense reporting system that records the amount, date, business connection, receipt, and business-use percentage for mixed expenses.
3. Submit your expense reports and receipts within the IRS 60-day safe harbor window, then formally approve them.
4. Transfer the approved reimbursement from your S corp account to your personal account and record it under the appropriate operating expense.
Want help putting an Accountable Plan and monthly expense process in place? Send us a DM.
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๐๐ผ๐ ๐๐ต๐ผ๐๐น๐ฑ ๐ ๐ฟ๐ฒ๐ด๐๐น๐ฎ๐๐ฒ ๐๐ต๐ฒ ๐๐๐ฒ ๐ผ๐ณ ๐๐ ๐ฎ๐บ๐ผ๐ป๐ด ๐บ๐ ๐ฒ๐บ๐ฝ๐น๐ผ๐๐ฒ๐ฒ๐?
If your employees are using AI to do company tasks, then you want to consider these things when regulating its use:
โข Which AI tools you are okay with them using and for which processes those tools should be used
โข How to handle entering sensitive company or client information into AI tools (especially ones that train a model or make information public)
โข Verifying AI-generated information before itโs used or shared
โข Who will handle AI regulation and questions
โข Which types of work still require a human review before anything goes to a client or customer
๐๐ข๐ท๐ฆ ๐ข๐ฏ๐บ๐ต๐ฉ๐ช๐ฏ๐จ ๐ฆ๐ญ๐ด๐ฆ ๐ต๐ฐ ๐ข๐ฅ๐ฅ ๐ต๐ฐ ๐ต๐ฉ๐ช๐ด ๐ญ๐ช๐ด๐ต? ๐๐ฐ๐ฎ๐ฎ๐ฆ๐ฏ๐ต ๐ฃ๐ฆ๐ญ๐ฐ๐ธ.
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๐๐ฎ๐ป ๐บ๐ ๐ฆ ๐ฐ๐ผ๐ฟ๐ฝ ๐ฟ๐ฒ๐ถ๐บ๐ฏ๐๐ฟ๐๐ฒ ๐บ๐ฒ ๐ณ๐ผ๐ฟ ๐ฏ๐๐๐ถ๐ป๐ฒ๐๐ ๐ฒ๐
๐ฝ๐ฒ๐ป๐๐ฒ๐ ๐ ๐ฝ๐ฎ๐ถ๐ฑ ๐ฝ๐ฒ๐ฟ๐๐ผ๐ป๐ฎ๐น๐น๐?
Yes, your S corp can reimburse you through an Accountable Plan, which is a formal arrangement for handling those reimbursements.
For example, say you paid $6,000 in qualifying business expenses personally. Without an Accountable Plan, your S corp gets no write-off for those expenses.
With an Accountable Plan:
โข Your S corp claims the $6,000 deduction
โข Your K-1 taxable income is reduced by $6,000
โข The $6,000 reimbursement isnโt included in your W-2 wages
โข The reimbursement goes back into your personal account tax-free
If business expenses keep coming out of your personal account, it could be time to make sure your S corp is reimbursing you the right way.
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First State CPAs & Associates |
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|
18 S. State St, Dover, DE 19901 |
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| (302) 736-6657 | |
| Business Hours | |
| January 1st January 31st | |
| MondayโFriday: | 8amโ5pm |
| Saturday & Sunday: | closed |
| February 1st April 15th | |
| MondayโThursday: | 8amโ6pm |
| Friday: | 8amโ5pm |
| Saturday: | By appointment |
| Sunday: | closed |
| April 16th December 31st | |
| MondayโThursday: | 8amโ5pm |
| Friday, Saturday & Sunday: | closed |