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.

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.

That's a really important point I hadn't considered. Mom is in her early 70s and healthy now, but you never know what could happen. Do you know if there are any ways to structure gifts to avoid the Medicaid penalties while still helping out family? Or is it just a hard 5-year rule no matter what?

It is unfortunately a pretty hard 5-year lookback rule, though there are some limited exceptions. Some types of transfers to certain family members (like a disabled child) or into specific trusts don't trigger penalties. An elder law attorney might suggest alternatives like your mother keeping the money but creating a carefully structured promissory note if she wants to help you now, or setting up a proper medicaid-compliant annuity. Another option could be having her contribute to 529 education plans for grandchildren which may have different treatment. The rules are complex and vary by state, so definitely get professional advice specific to New York if this is a concern. The consultation fee would be tiny compared to the potential costs of getting it wrong.

This is such an underrated point! My parents sold their home to "help us kids out" and we all ended up worse off tax-wise compared to if they'd kept it. The capital gains tax they paid plus the reduction in their lifetime exemption was a double hit that could have been avoided with better planning.

That's really helpful to know for next year. Do you need to file anything special to request the extension or is it just a simple form? And does getting this extension for the business return also give you more time for your personal return?

Filing for the extension is very straightforward - Form 7004 is a simple one-page form that you can e-file. You don't even need to provide a reason for needing the extension. The S-Corp extension does not automatically extend your personal return though. Those are separate filings with different deadlines. You'd need to file Form 4868 to extend your personal 1040 if needed. But having the business extension gives you more time to get the K-1 properly prepared, which makes your personal return more accurate when you do file it.

I learned this the hard way! My first year with an S-Corp I only took distributions because I thought that was the advantage. Got a nasty letter from the IRS later. Now I use Gusto for payroll and it makes the whole process super simple.