We have long discussed the benefits of section 105 plans. But once you have set one up how is it deducted on your tax return? We will take a look at how to deduct it for various entity structures. Section 105 expenses are classified on the tax return according to the type of legal structure the … [Read more...] about Where Are Section 105 Plan Expenses Included on My Tax Return?
As a small business, it is crucial to follow the IRS and Department of Labor regulations to ensure that a Section 105 plan is set up properly and qualifies for Section 105 tax treatment. As such, it is recommended that businesses work with a qualified plan administrator and certified public … [Read more...] about How to Set up a Section 105 Plan: 5 Easy Steps
Qualified medical expenses under a Section 105 plan include amounts paid for the diagnosis, cure, treatment, or prevention of disease, or for affecting any structure or function of the body. Qualified expenses also include any relevant transportation to receive medical care. Lodging expenses up to … [Read more...] about What Types of Medical Expenses are Covered by a Section 105 Plan?
Section 105 plans have been used for decades to help business owners get tax deductions for medical expenses. They are similar to Health Savings Accounts, but there are a few significant differences. In this post, we answer the question - what is a section 105 plan? Section 105 of the Internal … [Read more...] about What is a Section 105 Plan? The Surprising Truth
Many small businesses choose to structure their companies as S-Corporations. S-Corporations have many legal and financial benefits and can be a great option for business shareholders and owners. But there are certain considerations if you are planning to set up a section 105 plan for your … [Read more...] about Section 105 Plan S-Corporation: The Best Strategy
Owners of a C-Corporation are in a great position to realize the tax-free benefits of a Section 105 plan. They may entirely deduct the cost of such a plan from the taxable income of the business. The benefit is included within the W-2 statements of their employees as non-taxable income. Since … [Read more...] about Section 105 Plan C-Corporation: The 1 Simple Rule