Check here for important bits of information that have made recent headlines.
More Work, Less Play—According to a new study, small-business owners are generally working harder, spending more time at work and taking less vacation time than they did in the past. The survey found that 37% of small-business owners are working 11 or more extra hours per week, compared with the 24% who reported the same thing in 2012. Also, 43% of the small-business owners are vacationing less and taking less “downtime” than they did the past three years.
Constructive Dividend—In a new case, a construction firm owner had the firm build a vacation home for him. He reimbursed the business for amounts paid to subcontractors and vendors plus the labor and overhead. The IRS said this arrangement constitutes a “constructive dividend” because the owner did not have to pay the usual profit margin. But the Tax Court disagreed. It ruled that the reimbursements were sufficient.
