S-Corp Group-Term Life Insurance: The 2% Shareholder Trap
A 2% S-corp shareholder doesn’t get the $50,000 Section 79 exclusion for group-term life insurance — the entire premium counts as taxable wages.
S-Corp Blog
Tax tips, strategy guides, and practical advice for S-Corporation owners.
S-Corp Cafeteria Plan Rules: Why 2% Owners Are Locked Out
An S-corp cafeteria plan can’t cover more-than-2% shareholders for health or dependent care FSA purposes — the IRS treats them as self-employed for this benefit, no matter what the W-2 says.
S-Corp Net Investment Income Tax: Do You Owe the 3.8%?
Active S-corp owners who materially participate usually skip the 3.8% Net Investment Income Tax on K-1 income, but self-rental setups and passive shareholders can still get caught.
S-Corp Paid Family Leave Credit: New 2026 IRS Rules
OBBBA made the Section 45S paid family leave credit permanent and added a premium-based option starting in 2026. Here’s how the credit works and who actually qualifies.
S-Corp Excess Business Loss Limitation: 2026 Changes
OBBBA made the excess business loss limitation permanent and reset the threshold lower for 2026. Here’s how the cap works and why more S-corp owners will hit it this year.
S-Corp Trump Account Contributions: The New 2026 Rules
OBBBA created a new fringe benefit letting S-corps contribute up to $2,500 tax-free to an employee’s Trump Account — but the more-than-2% shareholder rule locks the owner out of using it personally.
S-Corp Built-In Gains Tax: The 5-Year C-Corp Trap
Converting from a C-corp to an S-corp doesn’t erase pre-conversion appreciation. Here’s how the Section 1374 built-in gains tax works, the 5-year window, and how to plan around it.
S-Corp Augusta Rule: How to Rent Your Home Tax-Free
The Augusta Rule lets S-corp owners rent their home to their own business for up to 14 tax-free days a year — but a 2023 Tax Court case shows exactly how the deduction gets disallowed when the rent isn’t priced like a real transaction.
S-Corp Extended Deadline: What’s Due September 15, 2026
Calendar-year S-corps that filed Form 7004 have until September 15, 2026 to file Form 1120-S. Here’s what’s due, what the per-shareholder late-filing penalty costs, and what to check before you file.
S-Corp HSA Contributions for 2% Shareholders in 2027
The IRS raised 2027 HSA limits to $4,500 self-only and $9,000 family, but S-corp owners who own more than 2% of the company can’t take the contribution tax-free like a regular employee. Here’s how the payroll and reporting actually work.
S-Corp QBI Deduction 2026: What Section 199A Means
OBBBA made the Section 199A QBI deduction permanent. Here’s how the 2026 income thresholds, the wage limitation, and reasonable salary interact for S-corp owners.
S-Corp Shareholder Basis: How AAA and Stock Basis Work
AAA and shareholder stock basis are different accounts. Here’s how they interact, and why a distribution covered by AAA can still trigger capital gain for a specific shareholder.
S-Corp Vehicle Deduction: What You Can Write Off in 2026
How the S-corp vehicle deduction works in 2026 — Section 179, permanent 100% bonus depreciation, the luxury auto cap, and the heavy SUV exception.
S-Corp Business Interest Deduction: 2026 163(j) Rules
OBBBA permanently restored the EBITDA-based ATI calculation for the Section 163(j) business interest limitation starting in 2025. Here is what changed and what S-corps with debt need to check for 2026.
S-Corp Overtime Deduction: New 2026 W-2 Reporting Rule
The OBBBA’s overtime deduction requires mandatory W-2 Box 12 Code TT reporting starting in 2026, and most S-corp owners won’t qualify for it themselves.
Massachusetts OBBBA Decoupling: What S Corporations Need to Know for 2025–2026
Massachusetts OBBBA Decoupling: What S Corporations Need to Know for 2025–2026 Contact Us The One Big Beautiful Bill Act, signed into federal law in July 2025, made major changes to depreciation, research expenses, business interest deductions, and other tax provisions. But Massachusetts OBBBA conformity is far from automatic — the state does not follow every … Massachusetts OBBBA Decoupling: What S Corporations Need to Know for 2025–2026
PTE Election Strategy 2026: A State-by-State Look at What’s New
PTE Election Strategy 2026: A State-by-State Look at What’s New Contact Us The pass-through entity tax election has quietly become one of the most valuable state tax strategies available to S corporation owners, and 2026 has brought a wave of changes worth tracking. More than 30 states plus New York City now offer some form … PTE Election Strategy 2026: A State-by-State Look at What’s New
S-Corp Mileage Reimbursement: The 2026 Rate Change
The IRS raised its business mileage rate mid-year to 76 cents per mile. Here’s how S-corp owners should update accountable-plan mileage reimbursement without creating a payroll tax problem.
Cost Segregation for S Corps: How 100% Bonus Depreciation Changes the Strategy
Cost Segregation for S Corps: How 100% Bonus Depreciation Changes the Strategy Contact Us For years, cost segregation was primarily associated with larger commercial real estate investments. For an S corporation that owned its own office, warehouse, or other commercial property, the cost of a study could be harder to justify. The One Big Beautiful … Cost Segregation for S Corps: How 100% Bonus Depreciation Changes the Strategy
S-Corp R&D Tax: Immediate Deductions Under Section 174A
S-Corp R&D Tax: Immediate Deductions Under Section 174A Contact Us The S-Corp R&D tax deduction is back. The One Big Beautiful Bill Act (OBBBA) created new Section 174A, which restores immediate expensing of domestic research and experimental costs for tax years beginning after December 31, 2024 — permanently, not as a temporary patch. That reverses … S-Corp R&D Tax: Immediate Deductions Under Section 174A
S-Corporation 401(k): Are You Compliant Under SECURE 2.0?
S-Corporation 401(k): Are You Compliant Under SECURE 2.0? Contact Us 2026 is the year SECURE 2.0 stops being a future compliance project and starts being an operational one for your S-corporation 401(k). The automatic enrollment mandate took effect for 2025 plan years. The mandatory Roth catch-up rule for higher earners — which hits S-corp owner-employees … S-Corporation 401(k): Are You Compliant Under SECURE 2.0?
OBBBA State Tax Conformity: What S-Corp Owners Need to Know
OBBBA State Tax Conformity: What S-Corp Owners Need to Know Contact Us When the One Big Beautiful Bill Act (OBBBA) became law on July 4, 2025, it introduced permanent 100% bonus depreciation for qualifying property acquired after January 19, 2025, made the 20% Qualified Business Income (QBI) deduction under Section 199A permanent, and created new … OBBBA State Tax Conformity: What S-Corp Owners Need to Know
Form 1099-DA for S Corporations: How to Reconcile Crypto Transactions Before Filing
Form 1099-DA for S Corporations: How to Reconcile Crypto Transactions Before Filing Contact Us Starting with transactions occurring on or after January 1, 2025, digital asset brokers that take custody of customer assets — including cryptocurrency exchanges, hosted wallet providers, and certain payment processors — are required to issue Form 1099-DA to report proceeds from … Form 1099-DA for S Corporations: How to Reconcile Crypto Transactions Before Filing
BOI Reporting Exemption for S Corps: Everything You Need to Know
BOI Reporting Exemption for S-Corps: Everything You Need to Know Contact Us For the better part of two years, S Corporation owners were preparing for one of the most significant compliance requirements in recent small business history. The Corporate Transparency Act S-corp reporting obligation generated widespread concern, confusion, and a cottage industry of compliance services. … BOI Reporting Exemption for S Corps: Everything You Need to Know
How Tariff Costs Affect S-Corp Taxes and COGS in 2026
How Tariff Costs Affect S-Corp Taxes and COGS in 2026 Contact Us Few line items on an S-corp’s books have moved around as much in the past two years as tariff costs. The 10% baseline tariff that took effect in April 2025 was struck down by the Supreme Court in February 2026, some importers are … How Tariff Costs Affect S-Corp Taxes and COGS in 2026
