Does the accountable plan approach require any special documentation? I've heard mixed things about how formal it needs to be.

An accountable plan does require proper documentation, but it's not overly complicated. You need to have a written policy that requires business connection for expenses, timely submission of expenses (generally within 60 days), and returning excess reimbursements within a reasonable timeframe (usually 120 days). You'll need to keep receipts and document the business purpose of each expense. The plan itself can be as simple as a one-page document outlining these requirements that's approved by the partnership. The key is consistent enforcement - you can't just reimburse expenses without following the documentation requirements you establish.

You need to measure the actual square footage of your dedicated office space and divide by the total square footage of your home. So if your office is 150 sq ft and your home is 2000 sq ft, you'd use 7.5%. Using "number of rooms" isn't accurate and could get flagged.

What's the deadline for filing the W8BEN? I have a similar situation but my broker keeps saying they need extra documentation beyond just the W8BEN form and I'm getting worried about timing.

Technically the W8BEN should be on file before any payments are made to you, but you can submit it anytime. It's valid for three years from the date signed unless your circumstances change. Some brokers do require supporting documentation like a certificate of residence from your home country's tax authority or copies of your passport/visa. This varies by institution and sometimes depends on the amount of money involved. If they're asking for extra documentation, it's best to provide it quickly rather than argue, as they can withhold at the full 30% rate without proper documentation.

Yes, you absolutely need to report it even if you didn't receive a form! Banks only send 1099-INTs when the interest is $10 or more, but ALL interest income is taxable and must be reported on your return. And yes, the bank almost certainly reported it to the IRS under your SSN even if they didn't send you a form. If you don't report it, you might get a letter from the IRS later asking about the discrepancy. It's not worth the hassle over a small amount - just include it on your Schedule B.

That's a really good point I hadn't considered. I do have the confirmation letter from the IRS acknowledging my S-corp election, so I should be good on that front. But it's definitely something important to verify. Do you know if there's any specific form I should use to document the distributions to myself when I file my taxes? Or does it just flow through automatically on the K-1?

Good to hear you have your confirmation letter! For documenting distributions, they'll show up on your Schedule K-1 (Form 1120-S) in Box 16, Code D. There's no separate form you need to file specifically for the distributions. The K-1 will flow to your personal tax return. Just make sure you maintain good corporate records with minutes documenting the distribution approval. Also keep a running basis worksheet so you can track your basis from year to year - this becomes really important if you ever put additional money into the business or take distributions larger than a single year's profit.

Yep and industry matters a lot! For example, if you're in a service business where YOU are the primary value (consultant, lawyer, doctor), you generally need a higher salary percentage compared to someone in a capital-intensive business. I've seen the IRS successfully challenge cases where professionals tried to take 30% as salary and 70% as distributions.

Is there an easy way to find out about these exemptions? The forms I got don't mention anything about potential exemptions for small businesses.

The easiest way is to go directly to your county assessor's website and look for a "Business Personal Property" or "Exemptions" section. They often have PDFs explaining what's available locally. If that doesn't work, try calling your state department of revenue - they usually have the most comprehensive information. Local exemptions aren't always well-advertised, which is unfortunate but common. Sometimes local business development centers or SCORE offices also keep guides about local tax exemptions for small businesses. Worth checking all these sources since exemptions can save you hundreds or even thousands depending on your business assets.

This is super helpful. Do receipts matter? I have some equipment I bought used from another business where I just got a handwritten receipt. Will the assessor accept that?

I used TurboTax last year for a similar situation with a Japanese client. TurboTax let me enter "Foreign" as the country and then I could skip the zip code validation. It took some digging through the help menus to figure it out though - there's a special workflow for foreign addresses.