Are you operating your business as an S Corporation?
If so. We offer seven key tax-saving Strategies that can help you save significantly on taxes.
- Reasonable Compensation for S Corp Owners – Pay yourself a reasonable salary as an owner and save 15.3% in self-employment tax on the remaining net profit after reasonable compensation.
- Health Insurance Premium Deductions – If you own 2% or more of the business and no health insurance is offered to you or your spouse (if working), you can deduct health insurance premiums as a business expense, reducing taxable income. The premium should be reported in W-2 Box 1 only, avoiding FICA taxes (15.3%).
- Qualified Business Income (QBI) Deductions – Under Section 199-A, you may qualify for a 20% deduction on the lower of your business income or taxable income, provided you meet income thresholds.
- Pass-Through Entity Elective Taxes (PTEET) – Deduct 9.3% of your business net income from federal taxable income (TBD)
- Retirement Plan Contributions – Set up an appropriate retirement plan and defer up to $275,000 from your income.
- Hiring Your Children – Employing your children in the business with no income taxes up to $15K
- Home Office Reimbursement – If you use your home for business purposes, you may reimburse yourself for related expenses, reducing taxable income.)
If you would like to discuss how these strategies can be tailored to your situation. Call or email us to schedule a free 30-minute consultation. We’d love to help you maximize your tax savings!