7 Write Offs Every S Corporation Business Owner Must Know

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7

WRITE OFFS
EVERY
S-CORPORATION
BUSINESS OWNER
MUST KNOW

WWW.BORISMTAX.COM
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.

Be a part of a community of like-minded business owners who are sharing


their tax tips and asking tax questions!

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.

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,

CLICK HERE TO START YOUR


FREE 14-DAY TRIAL!

WWW.BORISMTAX.COM
TABLE OF CONTENTS

04 Tax Advisory vs Tax Preparation


Tax Advisory is not a new concept but it is practically not
utilized by small businesses. Learn more on page 4.

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 Pass Through Entity Tax (PTET)


PTET is the newest way business owners can save money on
taxes. Learn more on page 6.

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.

WWW.BORISMTAX.COM
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.

After venturing out on my own, I decided tomake it my duty


and obligation to focus ondelivering only value to my clients
and helpingthem save money on taxes.

Most importantly educating business owners and


entrepreneurs on the ways they canminimize their tax
liability.

And no, not JUST by tax preparation. I’ve spent tens of


thousands of dollars and years in trenches learning the
most effective methods to LEGALLY reduce taxes.

I have spoken with, studied, worked and learned from one


of the best tax experts in the country.

I was also awarded the “Certified Tax Coach”designation


by American Institute of Certified Tax Planners and I am just
one of 700 Tax Professionals in the country that completed
intensive program on court tested, IRS approved Tax Strategies.

It is my hope that you will find the strategies in this book


helpful, useful and most important tax effective!

Boris Musheyev

WWW.BORISMTAX.COM 3
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:

Saving money on taxes with PROACTIVE tax planning strategies

Having a crystal clear understanding of your business finances


through communication in PLAIN English

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.

WWW.BORISMTAX.COM 4
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.

To be able to deduct, admin home office:

Have a separate space in your home for a home office

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

Submit an Expense Reimbursement Report or Form 8829 to the Corporation


every month, so that your S-Corp can reimburse you % of the home used for:

Monthly Rent

Utilities

Other Costs Related to your admin home office

WWW.BORISMTAX.COM 5
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.

This allows the business to take a deduction for that expense.

A few things to note:

PTET is voluntary, you have to make that election each year to pay that tax

Not all states have adopted this new tax

Each state has different deadlines to elect in for each year

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

1 Maximum of $22,500 comes out of your paycheck

2 Your business can do a 25% contribution of your salary ($100k x 25%)

WWW.BORISMTAX.COM 6
2% SHAREHOLDER
HEALTH INSURANCE

As 2% shareholder of your S-Corporation, the IRS allows you to deduct your


personal healthinsurance premiums and additionally reduce your payroll
taxes.

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.

For example: Your reasonable compensation is $100,000, and your family


health insurance premiums are $20,000 per year. The IRS allows you to
include $20,000 premiums as part of your $100,000 salary.

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

Section 127 is an educational assistance plan that allows you to reimburse


youremployees up to $5,250 for college tuition. While you can not use this
fringe benefit as an owner of an S-Corporation, you can provide this fringe
benefit to your child that is 21 and over.

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.

WWW.BORISMTAX.COM 7
DONOR ADVISED FUND

Donor advised funds have exploded over the past few years. And they’re
anamazing tax benefit if you give charitable donations.

Here’s how it works:

You donate $100,000 to the fund today.

You get the $100,000 deduction now.

From the fund, you donate $10,000 a year to your church


(probably more as your money in the fund grows tax-free).

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.

What can you donate that is tax-deductible

Cash (including money in IRAs and 401(k)s

Stocks, bonds, and mutual fund shares

Real estate

Privately owned company stock

LLC and limited partnership interests

Bitcoin and other crypto currencies

Life insurance.

WWW.BORISMTAX.COM 8
BONUS DEPRECIATION

I saved the best for last.

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 purchase $100,000 in equipment for your business and place it in


service in 2023, you can deduct $80,000 using 80% bonus depreciation.

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.

WWW.BORISMTAX.COM 9
Your Tax Planning Call

If you would like to discuss any of these strategies further


and how you can incorporate them into your business you
can schedule a call with me at
www.taxplanningcall.com

Click Here To Schedule Your


FREE Tax Advisory Session

WWW.BORISMTAX.COM 10
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.

Be a part of a community of like-minded business owners who are sharing


their tax tips and asking tax questions!

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,

CLICK HERE TO START YOUR


FREE 14-DAY TRIAL!

WWW.BORISMTAX.COM 11
DISCLAIMER

This material & presentation content is for informational and educational


purposes only.

This material and presentation content is designed to provide general information

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.

We specifically disclaim any liability resulting from the use or application of


theinformation contained in this publication.

To ensure compliance with requirements imposed by the IRS, we inform you


that any US federal tax advice contained in this communication (including
any attachments) is not intended or written to be used, and it cannot be
used for the purpose of (i) avoiding penalties under the Internal Revenue
Code or (ii)promoting, marketing, or recommending to another party any
transaction or matter addressed herein.

Always seek advice based on your particularcircumstances from an


independent advisor.

WWW.BORISMTAX.COM 12

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