All Posts

What business buyers and sellers should know about termination payments and abandoned transaction costs By Rosalind Talarico, EA, MST A business acquisition can collapse after months of negotiations, legal work, financial review, and due diligence. When that happens, one party may owe a breakup fee, and both parties may be left with substantial transaction costs. The tax result is not automatic. Depending on the agreement and the structure of the transaction, the payment may

The payroll and reimbursement steps that protect the owner deduction S corporation owners can often deduct health insurance premiums, but the deduction is not automatic. The corporation must pay or reimburse the premiums, the amount must be reported correctly on Form W-2, and the shareholder must satisfy the limitations in Internal Revenue Code Section 162(l). If one step is missed, the owner may lose some or all of the deduction even though the premiums were paid. The core f