Madsen and Company

07/31/2026

How to Determine Reasonable Compensation for an S Corporation

Great read — check it out!

Learn how to determine reasonable compensation for an S Corporation, understand the IRS factors involved, avoid common mistakes, and develop a proactive salary strategy that supports long-term tax planning.

07/18/2026

📖 An editorial by Steve Madsen, CPA, founder of * Madsen and Company* . For high-income professionals and business owners, rental real estate is often the centerpiece of a long-term wealth strategy.

High-income investors can use Real Estate Professional Status (REPS) to offset ordinary income with rental losses.

05/16/2026

Short-Term Rental Tax Planning Tips

Many short-term rental owners in Utah are surprised by how material participation and passive activity rules affect their tax deductions.

Steve Madsen, CPA, founder of Madsen and Company, works with Airbnb, VRBO, and other short-term rental investors to ensure losses are properly classified and audit-ready.

Key considerations include:
• Accurate guest stay tracking
• Documented participation and time logs
• Proper property classification
• Depreciation strategy

Our free Short-Term Rental Material Participation Tracker helps property owners stay organized and compliant.

Track short-term rental material participation hours, activities, and documentation for STR tax planning and IRS audit support. Learn what activities count, common mistakes, and how to maintain defensible participation records.

03/13/2026

Determining a reasonable salary is one of the most important tax decisions for S-Corporation owners.

If compensation is set too low, the IRS may reclassify distributions as wages and assess additional payroll taxes and penalties. If it is set too high, business owners may pay more payroll tax than necessary.

Understanding how reasonable compensation works helps S-Corp owners stay compliant while making informed decisions about payroll and distributions.

This article explains how the IRS evaluates reasonable salary and the factors business owners should consider when determining owner compensation.

Written by Steve Madsen, CPA — advising business owners on tax strategy since 1993.

https://www.madsencpa.com/blog/reasonable-salary-s-corp-owners/

03/11/2026

One of the biggest tax mistakes we see with South Jordan S-Corporation owners has nothing to do with deductions.

It's payroll.

Many local business owners either:
• Pay themselves far too much “to be safe,” or
• Skip reasonable salary planning entirely.

Both approaches often lead to unnecessary payroll taxes or compliance risk.

In our new South Jordan Business Owner’s Guide, we explain:
• Why S-Corp payroll decisions matter more than Utah’s income tax rate
• How reasonable salary mistakes quietly add up
• When payroll planning must happen to actually save money

If you own an S-Corporation in South Jordan and haven’t revisited payroll strategy recently, this is worth a few minutes of your time.

👉 Learn more in the South Jordan Business Owner’s Guide.
https://www.madsencpa.com/blog/south-jordan-business-tax-planning/

03/01/2026

Running a business in South Jordan in 2026 is very different than it was just a few years ago.

Rapid growth, changing licensing rules, sales tax exposure, and S-Corporation payroll decisions are causing many local business owners to overpay in taxes — often without realizing it.

We just published a new guide for South Jordan S-Corporation owners and real estate investors covering:
• Common local tax mistakes
• Licensing and compliance issues we see most often
• Why payroll and reasonable salary planning matter more than ever
• When tax planning actually saves money (and when it’s too late)

If you own a business in South Jordan and want clarity before April locks in your tax outcome, this guide is a smart place to start.

Read the South Jordan Business Owner’s Guide to 2026.
https://www.madsencpa.com/blog/south-jordan-business-tax-planning/

02/22/2026

Business tax season is about accuracy, compliance, and proper reporting.

At this point in the year, our focus is to:
• Reconcile business records
• Verify payroll and expense information
• Apply current tax law correctly
• Prepare and file required business returns
• Ensure business and personal filings align properly.

Once the year has ended, results cannot be changed — only reported correctly. A smooth tax filing process depends on complete records, timely responses, and careful review.

That’s how issues, notices, and amended returns are avoided. Accuracy matters more than speed. Serving Utah business owners across South Jordan, West Jordan, Riverton, Herriman, Draper, and surrounding areas.

02/17/2026

Most S-Corp owners wait until tax season to think about strategy. By then, it’s too late. Your tax return reports what already happened.
Real tax savings come from decisions made during the year — not after it ends.If you're taking distributions without salary planning, not reviewing reasonable compensation, or waiting until filing season to ask about strategy… you may be leaving money on the table. We just published a new article explaining why waiting until April costs S-Corp owners real dollars — and how proactive tax planning changes the outcome.

👉 Read the full article to understand what should be happening before deadlines pass.

Serving Utah business owners across South Jordan, West Jordan, Riverton, Herriman, Draper, and surrounding areas.

02/12/2026

While many investors focus on purchase price and rental income, long-term success in real estate depends on understanding the full cost of ownership. Hidden or underestimated expenses can significantly impact profitability if they are not accounted for in advance.

Read more here:https://www.madsencpa.com/content_library.htm?id=1T0KS2U9&cat=8s32j1y6

02/12/2026

Tax season looks different for everyone — and we specialize in preparing tax returns for clients with more than just a W-2.At Madsen and Company, we provide professional tax preparation for:
• Small business owners
• S corporations and LLCs
• Real estate and rental property owners
• Self-employed professionals

We prepare personal and business tax returns with CPA-level accuracy and make sure income, expenses, and deductions are reported correctly and in compliance with current tax laws.

Our fully virtual process allows us to work efficiently with clients in South Jordan and nationwide while keeping your information secure.

If you fall into one of these categories and need your tax return prepared correctly, now is the time to get started.

👉 Email [email protected] with the subject line “Let’s Get Started.”