Comments on: Tax Tips for Small Business Owners

By: Sheryl Schuff, CPA

Sheryl Schuff, CPA — Tue, 24 Mar 2009 01:03:07 +0000

David,

Thanks for your comment and the link to the IRS material. You are a savvy, well-informed business owner or you have a great tax accountant…maybe both!

You are correct that an S corp can now deduct as a business expense the cost of health insurance premiums it pays (or reimburses) for a more than 2% shareholder and I apologize for my misstatement. It must, however, be reported as additional W-2 wages and, as I said, the business owner can deduct it as an adjustment for adjusted gross income.

Sheryl

By: Kelly

Kelly — Thu, 19 Mar 2009 12:22:53 +0000

Thanks David, I’ll let Sheryl know!

By: Joe

Joe — Thu, 19 Mar 2009 07:38:36 +0000

Nice post! Excellent tips and advice.

By: David Maples

David Maples — Thu, 19 Mar 2009 03:06:07 +0000

Just wanted to drop you a line. The IRS changed the rules with the reimbursement of Health Care Premiums in 2008. The old limitation no longer applies. It is found in IRS publication called Notice 2008-01

You can find the official publication here.

http://www.irs.gov/pub/irs-drop/n-08-01.pdf

-David