THANK YOU! I find your videos about tax entities and keeping things straight for tax purposes to be well thought out and easy to understand. Keep up the good work. I have a client who is a C-Corp. Can you make some clarification videos about C-Corp tax payments?
If there are penalties and interest charges for late filings (particularly on federal income tax) should/can the business reimburse the owner and take that portion as an expense? Or does that become the responsibility of the owner?
I want to set aside some money for some local business taxes. I don't need to pay quarterly estimated taxes for these through the year, but setting it aside either monthly or quarterly means I don't have to worry when I assess my liability upon filing. I'm not sure how to show this on the balance sheet. Do you have a quick recommendation of how to account for this?
OK been expensing the owners estimated tax pymts all these years and CPAs never let me know? What about the CPA fees associated with preparing the associated taxes, should those go to Owner Distribution/taxes or a company expense? Thanks!
your CPA has probably seen it and removed that from the pretax profit when doing your taxes, but it gives you as the owner a false sense of what your real profit is. Tax preparation fees are an expense, but only the business portion. So you if you are an S-corp, the S-corp tax return prep fee is deductible, the personal tax return is not. However, most owners will put all the tax prep fees as a business expense....it's up to you on your risk tolerance if you are willing to put your personal tax return fees in there as well.
@@ClaraCFO hopefully the cpa does do that… i have seen a few make some terrible mistakes and blame it on the client or the bookkeeper. Never hurts to let the CPA know
