Section 105 Plan How can you “hire” a spouse in a sole proprietorship without having to pay a wage, and where do you report it? A Section 105 plan allows the employee-spouse to be given tax-free reimbursement checks to pay for substantiated heal costs incurred for the employee-spouse, their spouse, who just happens to be
Question: “Please elaborate on the reasonable compensation matter. How is it possible to have a one person business and split earnings between reasonable compensation and distributions. How does this help with the Medicare surcharge in 2013?” Answer: While we all have differing preferences on the proper allocation of wages and distributions in an S corp-
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