Title: Tax Smart Hustlers Podcast - Episode 4: All About Accountable Plans
Hosted by: Aaron Siegel, Tax Strategist, Thrive Tax Solutions
Episode Summary:
In Episode 4, Aaron Siegel dives deep into the world of accountable plans, particularly crucial for individuals transitioning from a Schedule C business to an S corporation. This episode breaks down the essentials of accountable plans, ensuring compliance with IRS requirements and maximizing tax benefits.
Key Topics Covered:
Introduction to Accountable Plans:
- Understanding the purpose and importance of an accountable plan in an S corporation.
- Overview of IRS requirements for accountable plans and reimbursement of business expenses.
Key Requirements of Accountable Plans:
- Business connection of expenses.
- Substantiation of expenses with receipts or proof.
- Refunding excess payments to the business.
Specific Expense Areas and How to Manage Them:
- Car and truck expenses: Choosing between standard mileage rate or actual expenses, and the importance of maintaining mileage logs.
- Home office expenses: Guidelines for claiming home office expenses and the role of depreciation in tax calculations.
- Shared expenses (e.g., internet and cell phone use): Strategies for reasonable allocations and the benefit of having separate business and personal lines.
Health Care Benefits in S Corporations:
- How to ensure health insurance premiums remain deductible in an S corporation setting.
- The importance of having the S corporation pay these benefits costs directly.
Timely Reimbursement and Documentation:
- Understanding the 30, 60, 120-day rule for reimbursements.
- The importance of timely and accurate documentation for reimbursements.
Conclusion:
- A summary of the importance of accountable plans in S corporations.
- Encouragement to stay compliant and avoid potential pitfalls.
Contact Information:
Listener Engagement:
- Request for listener feedback and suggestions for future episode topics.
- Invitation to rate and review the podcast.
Disclaimer:
This podcast provides educational information only and should not be considered as professional tax advice.
