Can I use business money to pay out of pocket medical costs? (insurance, CPA)
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I'm expecting a very large medical bill coming and would like to pay it iwth my company account.
I am sole owner (100%) of an s-corp, my wife and I are employees, I carry small group insurance through it (I have myself and kids on one policy, she is on her own).
I've heard of something called a section 105(b) plan that may apply to us, and I asked my accountant, but being tax time he is very slow to get back to me, which I understand.
So does anyone know how or even if I can pay the medical bills our insurance wont cover (curse you deductibles and coinsurance!)? It would be a huge help to do it this way. Thanks!
105(b), 106(a), and 162(a) are considered large, neon lit, flashing lights with sparklers and fireworks "AUDIT ME" signs. Make sure the CPA does it right (and all the other stuff rights as well) cause the IRS will come sniffing.....
105(b), 106(a), and 162(a) are considered large, neon lit, flashing lights with sparklers and fireworks "AUDIT ME" signs. Make sure the CPA does it right (and all the other stuff rights as well) cause the IRS will come sniffing.....
Interesting. I never did meet with him (got pushed back), but I dont understand why as an S-corp I cannot simply pay my or my employees out of pocket medical expenses as a perk. Some business have employee wight loss programs that pay for their employees gym memberships or whatever.
Interesting. I never did meet with him (got pushed back), but I dont understand why as an S-corp I cannot simply pay my or my employees out of pocket medical expenses as a perk. Some business have employee wight loss programs that pay for their employees gym memberships or whatever.
Perhaps this is a drawback of an S-corp?
If you had a regular corporation, I think you would be able to pay it to yourself as a dividend and then pay the capital gains rate on the personal income taxes. And then you'd use the "income" to pay the medical bills, and be able to write it off as a medical expense (if it passed the 7.5 or whatever % test) as a personal income deduction, right?
Is it possible for an S-corp to do that?
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