If you're moving money between your S Corporation and LLC, you need to know these intercompany transfer tax strategies. In this podcast, I explain the right way to transfer funds from your S Corporation to fund real estate investments, new businesses, or other ventures without triggering unnecessary tax consequences.
Most CPAs give terrible tax advice about intercompany transfers, telling business owners to transfer money directly from S Corporation to LLC without proper documentation. This creates massive tax problems including mismatched distributions, lost equity basis, and inability to deduct losses. I break down exactly how to structure intercompany transfers, shareholder distributions, and capital contributions to maximize tax deductions and avoid IRS issues.
What You'll Learn: How to properly take S Corporation distributions and use them to fund other businesses. Why you should NEVER buy real estate directly with S Corporation money or put property under your S Corporation. The critical difference between shareholder distributions and intercompany loans for tax purposes. How to establish equity basis in your new LLC to make losses tax deductible against your main business income. Why proper documentation of intercompany transfers as shareholder distributions is essential for tax strategy. When intercompany loans make sense versus capital contributions for funding new ventures.
We cover S Corporation distribution tax strategies, LLC formation and funding, establishing basis for loss deductions, and the tax consequences of intercompany loans versus equity contributions. Plus, why most small business owners under $10 million profit should be S Corporations, and how to structure multiple entities for maximum tax savings.
Stop making expensive intercompany transfer mistakes. Learn the right way to move money between your businesses while maximizing tax deductions and avoiding IRS problems.
I've put together this FREE resource for you:
7 Write-Offs Every S-Corporation Business Owner MUST Know
🆓 Download FREE PDF here: https://7taxwriteoffs.com/?el=podcast&htrafficsource=buzzsprout
Ready to start saving money on your taxes?
☎️ Schedule your FREE Tax Advisory Session: https://taxplanningcall.com/?el=podcast&htrafficsource=buzzsprout
💸 Save 100k NOW 💸 - https://save100know.com/access-training?el=podcast&htrafficsource=buzzsprout
🤑 If you want a better payroll app to process and file payroll for your business. Check out Gusto, so easy to use and you get a $100 gift card for signing up using this link: https://gusto.com/r/boris466
P.S. When you sign up for Gusto, you get a $100 Visa gift card
*Disclaimer This material & presentation content is for informational and educational purposes only. This material and presentation content is designed to provide general information regarding the subject matter covered. It is not intended to serve as legal, tax, or other financial advice related to individual situations. Because each individual’s legal, tax, and financial situation is different, specific advice should be tailored to the particular circumstances. For this ...
