Six Ways an S Corporation Election Can Go Wrong for Physicians
Electing S corporation status can be a valuable tax strategy for physicians with profitable 1099 or practice income. But the election itself is deceptively simple. Form 2553 is only a few pages long, yet small procedural mistakes can create problems that do not become apparent until months—or even years—later.
Here are six of the most common ways I see S corporation elections go wrong.
Don't Let Your S Corp Take the Wheel: Why Business-Owned Cars Can Drive Up Your Taxes
When physicians and other business owners elect S corporation status, one of the first questions they ask is:
"Should I put my car in the business?"
It seems logical. If the business uses the vehicle, shouldn't the business own it?
Surprisingly, the answer is often no.
While there are situations where S corporation ownership makes sense, personally owning your vehicle and using an accountable plan is frequently the cleaner, more tax-efficient option.
