7 Write Offs Every S Corporation Business Owner Must Know
7 Write Offs Every S Corporation Business Owner Must Know
7 Write Offs Every S Corporation Business Owner Must Know
WRITE OFFS
EVERY
S-CORPORATION
BUSINESS OWNER
MUST KNOW
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ARE YOU A BUSINESS OWNER
WHOSE DONE OVER PAYING IN TAXES?
I want to personally offer you a FREE 14 day trial to my Tax Reduction Platform.
It’s becoming one of the most valuable sources of information when it comes to
tax planning, tax savings, and tax updates for business owners.
The reason we built this platform is to bridge the gap between YOU and YOUR
TAXES. How?
By giving you access directly to a tax advisor and tax planning strategies so you
can really make a change to your bottom line.
Post ANY tax related questions in the community and get answered by myself
or our tax advisors within 24-48 hours. And if you’re not comfortable with
posting in the group, there’s an option to email us directly with the same
response time.
During our weekly live tax STRATEGY Q&A’s we’ll walk you through
everything you need to implement new tax strategies and save money on
taxes. I promise, you won’t even need your accountant to help you.
Stay up to date with the latest of the ever changing tax laws with your
Monthly PRINT Tax Strategy & Implementation Newsletter - PACKED
with tax information you NEED to know.
My Hand Picked-Tax Strategy Vault has all the strategies you need to get
rid of your tax time anxiety and save you thousands of dollars in taxes.
And you might even be able to teach your accountant a thing or two.
Only if you like what you see, and ONLY then, it’s $99/month to continue after 14 days.
If you’re a business owner and you actually want to start saving money on taxes,
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TABLE OF CONTENTS
05
TABLE OF CONTENTS
Home Office
You can still claim a home office deduction even if you have
an office outside of your home. Learn more on page 5.
06
Solo 401(k) - Owner ONLY
A Solo 401K is perfect for busy solo
S-Corporation business owners because it’s relatively easy to
set up, manage and administer. Learn more on page 6.
07
2% Shareholder Health Insurance
As 2% shareholder of your S-Corporation, the IRS allows you to
deduct your personal health insurance premiums and
additionally reduce your payroll taxes. Learn more on page 7.
07
Section 127
Section 127 is an educational assistance plan that allows you
to reimburse your employees up to $5,250 for college tuition.
Learn more on page 7.
08
Donor advised fund
Donor advised funds have exploded over the past few years.
And they’re an amazing tax benefit if you give charitable
donations. Learn more on page 8.
09
Bonus depreciation
Bonus depreciation is arguably one of the most
exciting tax incentives yet. Learn more on page 9.
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ABOUT
BORIS MUSHEYEV
Ever since my first year in college, I had an unexplainable burning desire in me to learn
asmuch as I can about taxation.
I wanted to do taxes and nothing else. After graduating college,I was sucked into the
world of Traditional Accounting.
The same world that most tax accountants are in...Grinding through tax season,
preparing and filling almost 500 tax returns per season. That is an insane number.
There was no value that I was providing my clients by simply preparing and filing their
taxes. Let me rephrase, almost 500 tax returns in 3.5 months, I was burned out and my
clients got no value out of it, because I was just making it through the deadline of filing
taxes.
I came across so many businesses that were insanely overpaying in taxes and there was
nothing that I could do for them. Why? Because I was just a tax preparer and not a
Tax Planner.
It was all REACTIVE rather than PROACTIVE. That is why most tax accountants and
CPA’s are not specializing in Tax Planning, rather they are stuck in the work of
taxpreparation.
Boris Musheyev
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TAX ADVISORY VS
TAX PREPARATION
Before we jump into 7 write offs every business owner must know, I’d like to
introduce you to the world of tax advisory. Tax Advisory is not a new concept
but it is practically not utilized by small businesses. It’s all about kicking your
finances up to a whole new level by:
Removing the thought of taxes from your mind because you have
someone who is constantly evaluating of your business and tax situation
You see, everyone thinks that Tax Advisory is for big players, multi-millionaires,
big fish as they call them. That is a huge misconception. I always say, “If you are
profitable in your business, there is money to be saved on taxes. Simple”. Tax
Advisory is not Tax Preparation. And it will NOT work if it is done at the end of
the year or at the time of filing your taxes.
Tax Advisory means being PROACTIVE about your taxes. The reason why a lot
of people are not able to take advantage of so many and again so many tax
strategies is because they fail to be proactive about it.
They, most often than not, wait until the end of the year only to be slapped with
a tax bill. They are at the mercy of their tax preparer who very often answers the
following: "There is nothing else that can be done, you made too much money
and that is a good problem to have. "That is simply not true.
I know this because I work with business owners in this situation and I help them
significantly reduce their taxes via proper tax advisory and using little known
LEGAL tax strategies. My clients are able to save tens of thousands of dollars on
taxes, and create millions of dollars in TAX FREE income.
Yes it is true and it is possible. So, let's get right into 7 deductions that every
business owner MUST know.
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HOME OFFICE
You can still claim a home office deduction even if you have an office outside of your
home. The IRS specifies that the home office is going to qualify for the deduction
when it's used for administration purposes for your business and most of your admin
work is done there. Admin work includes but not limited to: bookkeeping, billing,
paperwork,invoicing, etc.
If you have another office, make sure to perform majority of your admin
work from home
Figure out the % of the home used for business. For example, if your home
is 1,000 sq ft. and your home office is 150 sq ft., then you are using 15% of
your home for the business
Make sure to get a letter from your S-Corp, requiring you as an employee to
work from home and state your duties to be performed from home
Monthly Rent
Utilities
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PASS THROUGH
ENTITY TAX (PTET)
PTET is the newest way business owners can save money on taxes. PTET, also
known as pass-through entity taxation, is a deduction that allows business
owners to get around the $10,000 SALT cap that was put in place in 2018. Meaning,
now if you itemize your deductions, you can’t right off more than $10,000. But
now with PTET there is a way around it.
It’s an optional tax that allows the business owner to pay the state tax for the
business. Because you are going to pay that tax, you receive a tax credit on your
personal income tax for the same amount you paid for your S-Corporation or
partnership.
PTET is voluntary, you have to make that election each year to pay that tax
SOLO 401(K)
OWNER ONLY
A Solo 401K is perfect for busy solo S-Corporation business owners because it’s
relatively easy to set up, manage and administer. With a Solo 401(k), you can
contribute up to $22,500 (2023) from your paycheck. After which, your Scorp
can contribute 25% more into your plan and take it as a deduction.
If you are over the age of 50, you can contribute additional $7,500which is also
referred to as catch up contributions. All in all, total contributions may not
exceed $66,000 for 2023 and $73,500, if you are age 50 and older.
For Example, if you own an S-Corporation and your salary is $100,000, your
maximum contribution is $47,500
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2% SHAREHOLDER
HEALTH INSURANCE
But, in order for you to achieve this, you must include your health insurance
premiums as part of your W-2. This is the key.
Not an addition to the salary but as part of the salary! The reason you would
want to include your 20k premium as part of your compensation is because
$20,000 of your premiums will not be subject to payroll taxes.
SECTION 127
This includes tuition, books, and now includes student loan repayment. The
amounts are deductible to the employer, and employees do not have to
include the amount in their gross taxable income.
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DONOR ADVISED FUND
Donor advised funds have exploded over the past few years. And they’re
anamazing tax benefit if you give charitable donations.
National investment firms such as Fidelity, Schwab, and Vanguard have all
created donor-advised funds. These "commercial" donor-advised funds hire
an affiliated for-profit investment firm. They manage the assets in the
accounts for a fee that varies based on the account balance.
Real estate
Life insurance.
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BONUS DEPRECIATION
Bonus depreciation is arguably one of the most exciting tax incentives yet.
Since 2017, businesses have used bonus depreciation to deduct 100% of the
cost of assets instead of deprecating them over numerous years. However,
we are a little late to the party.
In 2023 Bonus Depreciation went from 100% to 80%. And it will continue to
decline by 20% each year until it reaches 0% in 2027.
If you wait until 2024, you’ll only be able to deduct $60,000 (60%).
Instead of deprecating it over numerous years, you can take the full 80% up
front in 2023.
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Your Tax Planning Call
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ARE YOU READY TO STOP
OVERPAYING IN TAXES?
Just in case you missed it, I want to personally invite you to a FREE 14-day trial to
my Tax Reduction Platform.
It’s becoming one of the most valuable sources ofinformation when it comes to
tax planning, tax savings, and tax updates for business owners. The reason we
built this platform is to bridge the gap between YOU and YOUR TAXES. How?
By giving you access directly to a tax advisor and tax planning strategies so you
can really make a change to your bottom line.
Post ANY tax related questions in the community and get answered by myself
or our tax advisors within 24-48 hours. And if you’re not comfortable with
posting in the group, there’s an option to email us directly with the same
response time.
During our weekly live tax STRATEGY Q&A’s we’ll walk you through
everything you need to implement new tax strategies and save money on
taxes. I promise, you won’t even need your accountant to help you.
Stay up to date with the latest of the ever changing tax laws with your
Monthly PRINT Tax Strategy & Implementation Newsletter - PACKED
with tax information you NEED to know.
My Hand Picked-Tax Strategy Vault has all the strategies you need to get
rid of your tax time anxiety and save you thousands of dollars in taxes.
It’s jam packed with strategies you can start using TODAY to save you thousands of dollars
in taxes - but don’t take my word for it, go check it out!
This platform is no-strings attached and FREE to join for 14 days. Only if you like what you
see, and ONLY then, it’s $99/month to continue after 14 days.
If you’re a business owner and you actually want to start saving money on taxes,
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DISCLAIMER
DISCLAIMER
regarding the subject matter covered. It is not intended to serve as legal, tax,
or other financial advice related to individual situations.
Because each individual’s legal, tax, and financial situation is different, specific
advice should betailored to the particular circumstances.
For this reason, you are advised to consult with your own attorney, accountant,
tax preparer, and/or other advisor regarding your specific situation or your
client’s specific situation. The information and all accompanying material
are for youruse and convenience only.
We, at BORISMTAX Inc., and its third party affiliates and presenters, have
takenreasonable precautions in the preparation of this material and believe
that the information presented in this material is accurate as of the date it
was written. However, we will assume no responsibility for any errors or
omissions.
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