Take Advantage of an Accountable Plan in Your Business
Aug 23, 2023Business owners often use their personal items to conduct business and do not always take advantage of the associated tax benefits. Most people know about the home office deduction and vehicle mileage, but there are many more opportunities that you can take advantage of as a business owner structured as an S corp.
The accountable plan is used by S Corporation owners to save money in taxes, aside from the self-employment taxes that you're going to experience saving on just by having the S Corp. I’ll be explaining what it is, why you need it in your business, and how to go about getting the proper paperwork in place.
The key takeaways from this episode are:
1. Discover untapped tax advantages by leveraging personal items for business as an S Corp owner, beyond familiar deductions like home office and mileage.
2. Learn about accountable plans - a tax-saving strategy for S Corp owners. Discover how it goes beyond self-employment tax savings and find out what expenses it can reimburse.
3. Understand the formal process, reimbursement scope, and key reasons to adopt an accountable plan for your S Corp, while gaining clarity on the necessary steps and documentation.
What you’ll hear in this episode:
[1:05] What is an accountable plan?
[2:30] What can you reimburse with an accountable plan?
[5:18] Is there a formal process to follow when reimbursing yourself?
[7:50] Why do I need an accountable plan if I already take some of these deductions on my standard tax return?
[11:45] Can you do a bulk reimbursement once a year? Or does it need to meet a specific timeframe?
[12:40] What do you need to actually implement an accountable plan?
Related Episodes:
3 Steps to Hire Your Kids the RIGHT Way
Protecting Your Legacy Through Estate Planning with Clara Delgado Rossell
Understanding Criminal Tax Activity and The Repercussions with Robert Nordlander
Resources:
Get the Accountable Plan Toolkit: https://www.keepwhatyouearn.com/offers/L3JNtewG
Tactical Resources:
5-Day Financial Mindset Refresh: https://www.keepwhatyouearn.com/refresh
Create a Custom Podcast Playlist: https://quiz.tryinteract.com/#/6303d4c525b1e80018d47cfa
Grow Cash Flow for Your Business: https://www.keepwhatyouearn.com/endless-cash
Tax Deduction Guide: https://www.keepwhatyouearn.com/tax-deduction-guide
CFO Power Session: Text POWER to 860-609-6374
See how much you can save with an S Corp: https://www.keepwhatyouearn.com/keep-what-you-earn-s-corp-calculator
Additional Resources & Connect with Shannon:
Find everything you need at https://www.keepwhatyouearn.com
Questions about this episode? Text me! https://my.community.com/shannonweinsteincpa
Hire us: https://www.fitnancialsolutions.com/accounting
Find me on IG: https://www.instagram.com/shannonkweinstein/
Meet me face-to-face on YouTube: https://www.youtube.com/channel/UCMlIuZsrllp1Uc_MlhriLvQ
The information contained in this podcast is intended for educational purposes only and is not individual tax advice. Please consult a qualified professional before implementing anything you learn.
