Review Owner Distributions
For different business entities, payments to owners may be run through payroll, treated as guaranteed payments to partners, or as dividends, owner draws, or distributions from capital accounts. Make sure any payments made to your winery owners have been properly treated.
For s-corporations, it is important that owner payroll be “reasonable” which can include many factors such as total company profit and industry averages for similar salaried positions.
Many payments from partnerships will be subject to self-employment tax as well as income tax.
December is a great time to discuss with your tax professional how any owner payments and business profits will be treated for tax purposes, and if a 4th quarter estimated tax payment would be recommended.