Ted Krejdovsky

About Ted Krejdovsky

Ted is a principal at Bregante + Company LLP, working primarily with closely held businesses that require a combination of financial accounting and tax services, including preparation of full disclosure compilations and reviews for those clients that need financial statement services.

2018 Tax Reform-Business Tax Changes

The Tax Cuts and Jobs Act (H.R. I; the Act) provides for major changes to business tax law.  Most of the changes are effective January 1, 2018.  The majority of the business provisions do not expire.

The following are a few changes that may save you significant tax dollars this year and in future years:

  • C-corporations: Are now subject to a flat tax of 21% and the special tax rate for personal service corporations is eliminated.
  • Small business deduction: Probably the most revolutionary addition to the tax law is the new deduction for qualified business income from “pass-through entities,” which also applies to sole proprietorships and rental properties. This provision can provide a deduction of up to 20% of your net “qualified business income”. This new law is too complicated to […]
By |February 8th, 2018|Categories: Announcements, Business Operations, Business Tax, IRS, Real Estate|Comments Off on 2018 Tax Reform-Business Tax Changes

Helping S Corporations Avoid Unreasonable Compensation Audits

Since compensation is subject to employment taxes (i.e., primarily Social Security and Medicare taxes) and distributions to shareholders are not, many S corporation owners reduce their compensation and increase their shareholder distributions in an attempt to avoid the employment taxes.   In some cases this is justifiable, and in some it is not.  The IRS is well aware of this issue; in fact, one of the IRS’s hottest audit triggers for S corporations is insufficient compensation paid to employee-shareholders.

The Journal of Accountancy recently published an article that provides nine steps to help S corporations reduce the likelihood of an IRS examination for unreasonable owner compensation.  Read the article here.

 

By |May 17th, 2016|Categories: BCo Community News, Business Operations, Business Tax, IRS|Tags: , , , |Comments Off on Helping S Corporations Avoid Unreasonable Compensation Audits

FedEx Drivers in California Held to be Employees

The Court of Appeals for the Ninth Circuit in California, reversing a California District Court, has held that FedEx drivers in California are employees, not independent contractors under California’s “right to control” test.  The tests used to evaluate whether a worker is an employee or independent contractor are generally comprised of 10 factors.  One of the principal tests is whether the person/company to whom the service is rendered has the right to control the manner and means of accomplishing the result desired.  If the person/company to whom the service is rendered to has the right to control, then it will most likely be an employee relationship rather than an independent contractor relationship.  The Court of Appeals found that FedEx had the right […]

By |June 2nd, 2015|Categories: Business Operations, Business Tax|Tags: , , , , , , , , |Comments Off on FedEx Drivers in California Held to be Employees