A personal S-corp question

[Possi]

Here's a personal question for y'all...

My fiancé retired last year and worked with me in my office, not doing taxes but doing admin work. Currently, I don't pay him.

This is his second year of retirement, and I wanted to know what my options are, regarding his tax return and his health insurance premiums.

What would I have to do to enable him to claim his health insurance above the line? Would he have to be a partner in this S-corp? If so, would he have to draw a salary, as I do?

Or, should I employ him and pay his health insurance?

I need to keep this as SIMPLE as possible.

[taxmandan]

He is self-employed in office management, files a sch c on his personal return and reports the income from the 1099MISC your company issues him for contracted work. He deducts insurance premiums above the line. TWIWD

[Possi]

thanks!

Thanks for replies on both accounts!

That is exactly what I will do!

[Gary2]

I don't see how he can be considered self-employed and not an employee.

[David1980]

If he is an employee, is there now a problem with Possi's health insurance being deductible (or larger issues) as well?

http://forum.thetaxbook.com/showthre...-2-shareholder - recent discussion on that.

[Possi]

control

He is not an employee.

I have absolutely NO control over what he does, AND I would be liable for a HUGE sexual harassment lawsuit.

[TXEA]

I have never heard of anyone self-employed in the business of office management and working for one company. This is an employment situation no matter how you go about it.

[Burke]

I have to agree, unless he is simply sharing office space and operating a non-related business on the same premises. In which case, he could pay you rent. If he is working in any way related to your practice, then he is an employee of your S-Corp if you pay him compensation.

[Possi]

Respect

I respect your input, Burke.

I won't pay him... Same as always.