tax

art werner: maximizing fringe benefits | quick tax tip

create a win-win between employer and employee.

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quick tax tip
with art werner
cpe today

what are we really trying to accomplish in the area of fringe benefits? we’re really trying to find a way to create what i call pseudo-compensation.

the goal is to be efficient in establishing the client’s needs and paying for those needs in a way that reduces and maybe even eliminates taxes. when we deal with tax planning for a client, sometimes, we try to focus on deductions. still, because of the tax cuts and jobs act, we essentially eliminate or reduce many itemized deductions and double the standard deduction. playing with deductions is not necessarily efficient. so, how is the client supposed to reduce taxes? well, maybe we can reduce taxable income. the idea of the fringe benefit is to let the company pay for something that i would pay for with after-tax dollars. i’ll take lower cash compensation as long as i walk away with a benefit that i’m not being taxed on. that’s fringe benefits.

2 responses to “art werner: maximizing fringe benefits | quick tax tip”

  1. art werner

    joe, thank you for your comment. i look forward to having you at the seminar, and i hope that you will feel comfortable asking me questions and providing insights and experiences.

  2. joe mastriano, cpa

    reducing deductions outside the itemized list is still very viable. however, i am interested in fringe benefits that can be controlled by small business corps and employees. i look forward to your seminar.