Tax Policy - The S Corporation Association

S-Corp Member Survey 2019

S-Corp sent its members a new survey this Spring. The goal was to follow up the survey we did just after tax reform was enacted to see how things had evolved. Now that our members had a year to digest the new rules, where did they stand? Here are the key takeaways –

Seven out of ten say their taxes went down or stayed about the same;
Four out of five say making permanent the 20-percent 199A deduction is a priority; and
Seven out of ten plan to remain S corporations in the near future.

That’s not bad, considering where we …

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admin2019-07-30T15:41:30+00:00July 30, 2019|

The Myth of Corporate Decline

The visual economist issued another great chart last month, this time showing the largest public companies by market cap.

Our first reaction is, wait, Microsoft is number one? When did that happen? All the focus on FAANG stocks (Facebook, Amazon, Apple, Netflix and Google) and stodgy old Microsoft is bigger? Go figure.

Our second reaction is “Gee Grandmother, what big market caps you have.” These companies are huge! And that’s not limited to the ten companies illustrated here. Measured against GDP, the market cap of all public companies in the US has …

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admin2019-07-26T16:50:37+00:00July 26, 2019|

S-Corp Mod Introduced in Senate!

Senators John Thune (R-SD) and Ben Cardin (D-MD) today introduced S. 2156, the 2019 version of the S Corporation Modernization Act. The new Modernization Act focuses on leveling the rules between S corporations and other business forms while increasing the opportunity for S corporations to raise capital. Among other items, the bill would:

Provide meaningful relief from the so-called “Sting Tax” passive income rules;
Expand the ability of IRAs to invest in S corporation banks; and
Level the tax-treatment of asset sales with sales of S corporation stock.

As the Senators noted at the introduction:

“While I believe we’ve …

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admin2019-07-18T19:11:57+00:00July 18, 2019|

Joe Biden’s S-Corp

What is it about Presidential candidates and S corporations? First John Edwards made the practice of abusing the S corporation structure infamous back in 2004. Then we learned Newt Gingrich did the same thing when he ran in 2012. And now Joe Biden. At some point, these candidates are going to realize that saving 3.8 percent on your taxes isn’t worth the political pain it will cost you. (Hat tip to Bernie Sanders and former President Obama.)

For those not up to speed, the former Vice President and his wife released their tax returns this week. Focusing on his 2017 return, …

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admin2021-08-16T14:01:51+00:00July 11, 2019|

Progress on S-Corp SALT Parity Efforts

The House Select Revenue Subcommittee held a hearing today entitled “How Recent Limitations to the SALT Deduction Harm Communities, Schools, First Responders, and Housing Values.” Missing from the list are Main Street Employers, many of whom lost the ability to deduct the State and local taxes they pay on their business income.

That’s because tax reform subjected deductions on state and local taxes (SALT) paid by pass-through business owners to the same $10,000 cap as taxes paid on wages and property. Taxes paid by the business entities themselves, like C corporations, remain fully deductible.

Since most states tax pass-through businesses at the …

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admin2019-06-25T21:54:41+00:00June 25, 2019|