Business Tax

Deducting CapEx

Both Bonus Depreciation and Section 179 Expensing allows capital expenditure (CapEx) to be deducted from business income, but key differences exist between the two methods. The TCJA liberalized writing off capital costs with the introduction of a Bonus Depreciation. Section 179 Expensing is still available for taking CapEx deductions. We show the similarities and key …

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Taxation of Sole Proprietorship vs. S-Corp

S-Corp receives a favorable tax treatment when compared to a Sole Proprietorship, by splitting its earnings between Salary and Unearned Distribution, and in which the latter is not subject to Self-Employment tax. The Self-Employment (SE) tax is the employee and employer portions of the FICA tax. The FICA tax has two components: Social Security tax …

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Business Corporate Structures

Taxation and management overhead dictate the choice of business structure. The latter includes, in increasing order of complexity, Sole Proprietorship, LLC, S-Corp and C-Corp. The simplest corporate structure is Sole Proprietorship for which the only paperwork required is capturing your business revenue and expenses in Schedule C. However, this structure offers no separation between personal …

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