‘This surgeon saved $19,586 by adding an accountable plan for home-office reimbursement.’
Every dollar counts when you're a successful practice owner, and an accountable plan to reimburse yourself will save you thousands.
3 min read

Money Found

1 March 2024

This surgeon saved $19,586 by adding an accountable plan for home-office reimbursement.

Angie M Grainger

Are you confident you’ve found the best ways to deduct your home-office expenses?

Not managing your deductions right can be costly—it’s just like pouring your hard-earned cash straight down the drain!

S-corp owners can establish an accountable plan to reimburse themselves for expenses they paid out of their own pockets, and this includes the cost of their home office.

There are three ways to account for your home-office expenses.

  1. Direct Deduction: Under the Tax Cuts and Jobs Act (TCJA), remote employees can no longer deduct these expenses on their tax returns if they exceed 2% of adjusted gross income (AGI). Your employee expenses would have to be first greater than the standard deduction, then limited to the 2% floor.

  2. Rent Payment by S Corporation: Your S corporation can pay you rent for the home-office space, providing a straightforward way to handle the cost, but you would have to claim the rent income.

  3. Reimbursement Under an Accountable Plan: Your S-Corp can reimburse you for home-office expenses through an "accountable" plan.

For this physician, we found over $33k in actual costs that could be deducted, saving them over $16k in taxes!

Not only did they get reimbursed for their expenses such as utilities, taxes, and insurance, but they also got reimbursed for the actual cost of the space through a depreciation reimbursement.

The secret to finding money, is having clean books for personal as well as business finances. Because we are their Personal CFO—which means we manage their business and personal finances—we get to see the whole picture. We already knew all the costs that were being paid through their personal accounts, so we were able to quickly get the numbers—and ultimately, get that deduction!

So many people pay close attention to their business books but neglect the overall picture.

Not having personal books and failing to see how it all works together is a way many of our clients were losing money, deductions and opportunities before they came to us.

We love setting our clients up well to win in every area of life. Gaining oversight and putting the best strategies in place is just one of the ways we live out our mission to help you live a better, more prosperous life.

Find out how you can experience this too by speaking with us today.

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Why settle for anything less than your own, personal CPA firm?

Why settle for anything less than your own, personal CPA firm?

Our team of Certified Public Accountants, Personal Financial Specialists, and Certified Financial Planners® is dedicated to personal finance—so we’re dedicated to you.

Our team of Certified Public Accountants, Personal Financial Specialists, and Certified Financial Planners® is dedicated to personal finance—so we’re dedicated to you.

Prosper-ent

one who prospers.

Prosper-ent

one who prospers.