JHK CPAs, AC

As a business owner, you may have received information about the California CalSavers Retirement Program. Cal Savers is a new program that requires California employers to either enroll in the Cal Savers retirement program or offer an employer-sponsored retirement plan. While CalSavers is currently reaching out to businesses about its plan, small businesses with between 5 and 50 employees are not required to sign up until June 2022. Small businesses with 4 or fewer employees are exempt. The employees will have a Roth IRA account and the default rate of contribution from their paychecks will be 5%. Employees can adjust that amount or opt out. Find more information at https://www.calsavers.com/ #CalSalvers #RothIRA

Rent Your Home to Your S Corp For Tax Benefits Did you know that you can apply the free-rent rule to rent your personal residence to your s-corporation for a deduction? The Masters Rules allows you to rent your personal residence for up to 14 days tax free. This allows you to charge your s-corp as a business expense for use of your personal residence. There are a few caveats that apply. You can’t get a deduction for renting to your employer... You can’t take deductions for entertainment facilities You can’t deduct rental to a related-party You can’t deduct personal, family, or living expenses You have to prove an ordinary and necessary business expense The IRS could consider this a bogus rental with the substance-over-form doctrine You can read the following article for more details https://member.taxstrategyletter.com/300

Reminder Extensions for Corporate and Individual Income taxes are due soon on 10/15/19! File and make payments ASAP. Find more information at https://bit.ly/2OG5e5a