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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 ...

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S-Corp Member Survey 20192019-07-30T15:41:30+00:00

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 tripled since 1986. The irony is that this ...

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The Myth of Corporate Decline2019-07-26T16:50:37+00:00

S-Corp Comments on Section 4960 Excise Tax

The S Corporation Association sent comments to the Department of Treasury today raising concerns that recent guidance it published has the potential to impose the new, Section 4960 excise tax onto private operating companies. The tax is supposed to be targeted at big non-profits and universities that pay their executives and coaches salaries in excess of $1 million per year, but due to expansive definitions of “employee” and “related organization” included in the department’s guidance (Notice 2019-09), the tax could be paid by many family businesses with related foundations and other charities instead. Worse, the new law is written in ...

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S-Corp Comments on Section 4960 Excise Tax2019-05-29T14:58:59+00:00

S-Corp Thanks its Champions

With tax reform passing the Congress in the next few hours, S-Corp sent a note of thanks to those members of the Senate – Johnson, Daines and Inhofe – who stood up for Main Street businesses at a most critical time.  As the letter states: Thank you for your outstanding leadership to promote tax fairness for thousands of American Main Street and family businesses throughout consideration of H.R. 1, the Tax Cuts and Jobs Act.  Because of your efforts, the final conference agreement included a number of improvements, including provisions directly aimed at addressing the ability of pass-through businesses and ...

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S-Corp Thanks its Champions2019-02-06T18:49:36+00:00

S-Corp Concerns with Senate Tax Reform Bill

Top Line The Framework and rhetoric leading up to its release indicated that Senate Leadership and the Finance Committee were committed to treating the millions of companies organized as pass-through businesses fairly in relation to C corporations.  The Framework explicitly called for a rate differential of five percentage points, while previous Finance Committee work focused on leveling the playing field between C corporations and pass-through businesses by eliminating the double corporate tax and moving the entire business community towards a single, reasonable level of tax on all businesses. Unlike much of the business community, S-Corp fully supported both efforts and ...

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S-Corp Concerns with Senate Tax Reform Bill2019-01-31T22:46:37+00:00