• Jim Costa

Jim’s Rant For The Day. Today’s Cheatin Day!

On New Year’s day I have always spent the day working up the corporate tax returns for my business ventures and those of relatives. As a CPA I learned early that if you knew the rules you could use the rules to the tax payer’s benefit with planning. I always enjoyed this day.

Tax tip #121: My son has a small Sub-S corporation he runs on the side. The Board of Directors voted to create a Fast Track Management Program for all the kids of the Stockholders. This business investment will pay off when the kids take over the business - they need to be prepared. The program is offered to all the offspring, which happens to be only one at this time.

The management program is focused on early training in social and technical skills needed by management today. It was determined that Public schools were not up to company standards so a Christian school was selected as it taught better courses including cursive writing.

Next was introduction of computers that requires a lot of home equipment to understand programming practices. Then there was social and health skills, such as swimming, self defense training, group intermingling projects, leadership training, educational travel, etc.

This is the first year the program has been available but it has already paid off. The five year old who is in Pre-K is doing great in the fast track management program and I am told will advance next year into Kindergarten already! This will save the family about $2,000 in taxes this year to cover the cost of the Management Trainee tee shirt.

Next I have to go back and add Continuity of Business expense for all the family preps in the event of chaos the business and it's owners survive. I'm gonna haveta sharpen a fresh pencil for that one.

Just in case you think this is cheating it is and it's not. IRS is not in a position to question the owner's business decisions as long as they are justified in business. These expenses are justified. But then there's the age old problem of trying to justify the Jacuzzi in the steno pool . . .

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