Uncategorized - The S Corporation Association

Treasury on 199A Guardrails

Remember this JCT chart from earlier this year? It garnered lots of attention and called into question how the 199A pass-through deduction was structured. If only 9 percent of all pass-through income was disqualified from getting the deduction, what was the point of having all those complicated rules?

We wondered about the estimate at the time, as it didn’t comport with our member’s experience. In our S-CORP survey this year, only half of our members expected to get the full deduction, while rest expected just a partial deduction or no deduction at all. …

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admin2021-08-16T14:01:00+00:00August 27, 2019|

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 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 such …

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admin2019-05-29T14:58:59+00:00May 29, 2019|

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 …

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admin2019-02-06T18:49:36+00:00December 20, 2017|