If you are on medicare and have a business, in most cases you can deduct the medicare premiums on the front of your return as self employed health insurance.If your business is an S Corporation, remember you have to reimburse yourself the medicare premiums from the corporation, then deduct the premiums as salary.
Brian’s Tax Musings
Is there a way for a husband and wife who own an S Corp to deduct an out of town trip for business? If they have a business purpose for the meeting, they are more likely to get the deduction than just meeting in town at a fancy restaurant.The Heineman Case was a tax court reviewed case that ruled a board meeting on Heineman’s vacation property to getaway from distractions to review his S Corp’s business plan made the trip deductible as a business expense.To get the deduction you have to show the main purpose of the trip was business and prove the business took place. So spending more time at business than personal activities will qualify your trip. You also need to show that you actually worked. Show minutes and maybe a tape of the meeting, maybe a copy of a business plan or other work done on the trip.
Brian’s Tax Musings
Do you have employees that have to pay for parking or a bus or transit pass to get to work? You can give both the employee and your business a raise by using the Transportation Fringe Benefit. If you pay directly or reimburse the employee the cost of:*Qualified parking*Transit passes*Certain commuter transportation costs*Bicycle commutingYou can pay up to $230 a month in qualified parking, transit passes and certain commuter transportion costs and up to $20 a month in bicycle commuting. You pay the benefits, reduce your employers salary by the cost and both your business and the employee save on payroll taxes (the employee saves fed withholding, FICA, Medicare, state withholding and SDI and business saves FICA and Medicare), If you have a C Corporation, you can also benefit as an employee (this doesn’t apply to S-Corps, Partnerships, LLCs and Sole Proprietors).The employee has to elect to make the salary reduction in writing and the election must include:*Date of Election*The amount of compensation deduction*The time period the reduction will take place (the employee can elect to automatically renew the election).How about that – transportation that saves you money.