Tax preparation and planning insights for business owners and individuals with complex needs in Roanoke, VA and beyond. Covers filings, compliance, and proactive strategies to reduce taxes and improve outcomes.
Q: How can S-Corp owners maximize their QBI deduction? A: By strategically adjusting W-2 wages. For high-income S-Corp owners, the QBI deduction is limited by wage thresholds. Paying too little…
Q: What are the biggest tax changes in the One Big Beautiful Bill Act compared to an expiring TCJA? A: OBBBA locks several TCJA breaks in place and softens others.…
Q: Which business entity saves the most tax – sole proprietor, LLC, S-Corp, or C-Corp? A: For owner-operated businesses above roughly $50k profit, an S-Corp usually wins: it slashes self-employment…
Q: Does the $10 million/$15 million QSBS exclusion make a C-Corp the best structure for most small-business owners? A: Rarely. QSBS can erase capital-gains tax, but only when you: (1)…
Q: Can the 10.5% Net CFC Tested Income (NCTI) regime really beat an S-Corp for a small-business owner? A: Only in very specific circumstances. Under the Net CFC Tested Income (NCTI – formerly GILTI),…
Q: Is electing a state Pass-Through Entity Tax (PTET) always a smart SALT-cap workaround? A: Almost always – but not universally. PTET converts state tax into a deductible business expense,…
Q: Can I avoid self-employment tax on partnership profits by having an S-Corp own my LLC interest? A: Yes – if structured correctly. The S-Corp pays you a reasonable salary…
Q: Can I avoid my home-state income tax by registering my business in a no-tax state like Wyoming or Nevada? A: No. Your resident state taxes income where you live…
Q: How do I determine a “reasonable salary” for my S-Corp? A: Start with what you’d pay an unrelated employee to do your job, then adjust for profit, duties, time…
Q: Can I deduct expenses that provide a personal benefit – like business suits, cosmetic work, therapy, or pet care? A: Almost never. The IRS allows a deduction only when…