Masonry Magazine December 1999 Page. 33
Family Business Tax Savings
Continued from page 30 employment tax on their share of the S corporation's ordinary income attributable to the operation of the masonry business.
Similarly, when it comes to determining the applicability of Social Security tax to employment, a person working for a regular corporation in which his or her spouse owns stock is considered to be an employee of the corporation not of the spouse. After all, a corporation is a separate entity for tax purposes. In fact, this is true even where the spouse is the sole shareholder of the corporation. Although the question of qualifying for Social Security benefits at some future date is one of the long-range factors that must be considered, even further down the line (hopefully), is the estate tax question.
Estate Taxes
Although wills, trusts and estates are also better handled by legal experts, our tax laws maintain their control over the masonry entity by dictating how it must be handled upon the death of one or both spouses. Those tax laws have placed a ceiling on the amount which one spouse may receive, tax-free upon the death of the other spouse.
Thus, a masonry operation owned solely by one spouse would be passed in its entirety to the other spouse (ignoring wills, insurance and many other factors). The full value of that business would become part of the contractor's estate and taxed accordingly. However, if the spouse were a joint partner or joint shareholder in the masonry operation, only part of the business would be included in the estate and subject to estate taxes.
Married couples in business are a reality even though many masonry contractors are not aware that their own business may be operating in this manner. To both profit and avoid the potential pitfalls, planning, early and often as things change or the business grows, is essential for a good and profitable working relationship and a low tax bill.
Say you saw it in
MASONRY
Magazine
MASONRY
SHOW
Las Vegas, Nevada
Feb 9-10, 2000
Great Ideas In Masonry Construction
one of a series
Introducing...
Hook Shield*
The Mortar Stops Here!
When inadvertent mortar droppings occur, they don't get past Hook Shield, the completely different approach to stopping excess mortar! Hook Shield installs easily with any hook-and-eye, triangle or adjustable tab system, on any veneer anchoring system. The Hook Shield system accommodates any size cavity and may be used on very high walls.
It's A Snap!
Constructed of rigid plastic, each Hook Shield piece snaps into place quickly, supported by the stability of the double hook. Double eyelets, placed alternately on the lower courses of masonry, provide staggered spacing for Hook Shield. Mortar droppings are suspended and will not fall to the bottom of the cavity. This avoids mortar buildup and allows moisture to exit through weeps and vents.
Hook Shield is easy to handle, and it's economical. Four small boxes, each containing 100 pieces, require only two cubic feet of storage. Each box contains 225 pieces which can provide excess mortar protection for approximately 100 linear feet of masonry wall cavity.
Mortar just doesn't get past Hook Shield. It's the new alternative for stopping excess mortar! Call us today at 1-800-MRCA (6722) concerning Hook Shield or any of the items in our complete line of masonry joint reinforcement materials and accessories. We're always searching for new solutions in the masonry industry. "Patent # 5,845,455
WIRE-BOND
1-800-849-MRCA (6722)
Masonry Reinforcing Corp. of America
Innovation In Masonry Construction
www.wirebond.com
NOVEMBER/DECEMBER, 1999 33