Getting the most of this course
Section 1: Definitions
Basic definitions commonly used in tax planning
Section 2: Tax Law Changes
Discussion of some of the 2018 tax law changes
- Tax law changes excel template
- Personal Standard Deduction
- Tax Rate Changes – Individual
- Tax Rates – Corporation
- Moving expenses
- Medical expenses
- Mortgage interest
- State taxes
- Casualty loss
- Miscellaneous itemized deduction
- Child tax credit
- Opportunity Zones
- Employee credit for paid family and medical leave
- Tax Law Change Quiz
Section 3: Qualified Business Income Deduction
QBI- new deduction for 2018
Section 4: Tax Planning
Section 5: Tax issues specific to married entrepreneurs
Section 6: Multi year tax planning issues
One of the advantages of being a married taxpayer is the ability to hire your spouse. This gives the business the ability to establish benefits not available to single taxpayers who run s corporations or sole proprietorship.
One such benefit is the qualified small employer health reimbursement arrangement (Qsehra) signed by Obama in December 2016.
- Reimbursement of medical expenses and premium for up to $5,050 a year for singles and $10,250 a year for families.
- It is the only plan that allows for reimbursement of premiums and medical expenses.
To qualify the business cannot:
- Have a traditional group plan
- Have over 50 employees
- Have health plans without minimum essential coverage
Qsehra is not available to owners that run businesses as sole proprietors or s corporations (more than 2% owner). However, a business owner running their business as a c corporation can make elect to establish Qsehra.
Considering the fact that most taxpayers will not be able to itemize their deductions in 2018, establishing a Qsehra is one way to get a tax benefit for medical expenses. When the spouse is hired as the employee, she gets reimbursed by the business for family health expenses.
For more information on how to establish a Qsehra plan, please send a message by clicking here.