Title: Tax Smart Hustlers Podcast - Episode 4: All About Accountable Plans

Hosted by: Aaron Siegel, Tax Strategist, Thrive Tax Solutions

Episode Summary:

In Episode 4, Aaron Siegel dives deep into the world of accountable plans, particularly crucial for individuals transitioning from a Schedule C business to an S corporation. This episode breaks down the essentials of accountable plans, ensuring compliance with IRS requirements and maximizing tax benefits.

Key Topics Covered:

1. Introduction to Accountable Plans:

   • Understanding the purpose and importance of an accountable plan in an S corporation.
   • Overview of IRS requirements for accountable plans and reimbursement of business expenses.

2. Key Requirements of Accountable Plans:

   • Business connection of expenses.
   • Substantiation of expenses with receipts or proof.
   • Refunding excess payments to the business.

3. Specific Expense Areas and How to Manage Them:

   • Car and truck expenses: Choosing between standard mileage rate or actual expenses, and the importance of maintaining mileage logs.
   • Home office expenses: Guidelines for claiming home office expenses and the role of depreciation in tax calculations.
   • Shared expenses (e.g., internet and cell phone use): Strategies for reasonable allocations and the benefit of having separate business and personal lines.

4. Health Care Benefits in S Corporations:

   • How to ensure health insurance premiums remain deductible in an S corporation setting.
   • The importance of having the S corporation pay these benefits costs directly.

5. Timely Reimbursement and Documentation:

   • Understanding the 30, 60, 120-day rule for reimbursements.
   • The importance of timely and accurate documentation for reimbursements.

Conclusion:

• A summary of the importance of accountable plans in S corporations.
• Encouragement to stay compliant and avoid potential pitfalls.

Contact Information:

• Social Media: @TrustYourTaxes
• Email: hi@taxsmarthustlers.show
• Website: taxsmarthustlers.show

Listener Engagement:

• Request for listener feedback and suggestions for future episode topics.
• Invitation to rate and review the podcast.

Disclaimer: This podcast provides educational information only and should not be considered as professional tax advice.