Small Business & S Corp - Surya Padhi, CPA,EA

Small Business & S Corp

Reasonable Compensation for S Corp Owners: How the IRS Decides

There is no percentage rule and no safe harbor. An S corp owner who works in the business is an employee, and the IRS can recharacterize distributions as wages to the extent they are reasonable pay for services performed. Nine…

Read More Reasonable Compensation for S Corp Owners: How the IRS Decides
Individuals & Retirement | Small Business & S Corp

Schedule C Tax Changes for 2026: What Every Business Owner Should Know

Five things changed on Schedule C for 2025 and 2026: the mileage rate rose to 72.5 cents, bonus depreciation became a permanent 100%, the Section 179 limit reached $2,560,000, the QBI phase-in ranges widened, and a new tip deduction arrived….

Read More Schedule C Tax Changes for 2026: What Every Business Owner Should Know