Tax & Business Insights

Q: What tax deductions do most small businesses miss? A: Nearly every “ordinary & necessary” expense – advertising, software, contract labor, insurance, rent, supplies – can be deducted. The main traps are gifts over $25, entertainment, nondeductible personal-benefit costs (clothing, childcare) and assets that must be depreciated instead of expensed. TL;DR (quick cheat-sheet) Always deductible […]

If you are eyeing a G-Wagon and telling yourself it is a business deduction, you are not alone. Social media has turned Section 179 into a luxury-SUV sales pitch. The problem is that a lot of the advice floating around is incomplete, outdated, or missing the IRS rules that actually matter. (irs.gov) A G-Wagon can […]

If you run a business as a sole proprietorship, LLC, partnership, or S-Corp, choosing the right retirement plan can materially affect both your tax deduction and how much you can actually save. A SEP IRA is popular mainly because it is easy. That does not mean it is usually the better tax move. In a lot […]

If you are shopping for an SUV in 2026 because you have heard you can “write off the whole thing,” the first thing to know is that the rule is more specific than that. The better tax treatment generally starts when a vehicle is over 6,000 pounds GVWR (“Gross Vehicle Weight Rating”), used more than […]

If you are hearing that “100% bonus depreciation is back” and wondering what that means for your 2026 tax bill, the basic answer is that many businesses can once again deduct the full cost of qualifying property in the first year. But the part that trips people up is timing. This is not just a […]

If you’ve ever been hit with an IRS underpayment penalty, you already know how annoying it is. It is one of the most avoidable penalties in the tax code, yet people get tagged with it every year because they misunderstand one basic point: the U.S. tax system is pay-as-you-go. The IRS does not just care […]

If you’re selling investments at a loss and buying them back too quickly, you can accidentally trigger one of the IRS’s most misunderstood rules: the wash sale rule. The stakes are real. A single mistimed trade can wipe out a legitimate tax deduction, push that loss into the future, and create reporting issues that are […]

If you invest in real estate and feel trapped by taxes, you’re not imagining it. Most investors are boxed into passive loss limits, forced to carry forward deductions for years, and often exposed to the 3.8% Net Investment Income Tax (NIIT) on top of everything else. Real Estate Professional Status (REPS) is one of the […]

If you’ve heard “hire your kids and it’s all tax-free,” you’ve heard the version that gets people in trouble. The real version is simpler and more boring: you can deduct wages paid to your child for legitimate work and, in the right unincorporated setup, those wages can also be exempt from FICA (under 18) and FUTA (under 21). Separately, the […]

The Augusta Rule (IRC §280A(g)) is one of the most powerful – and most misunderstood – tax strategies available to S-Corp and LLC owners. When used correctly, you can rent your home to your business for up to 14 days per year, deduct the expense on your business return, and pay zero income tax on […]

2026 and all of its tax deadlines are here. Below is a quick reference guide to the most important dates to keep in mind this calendar year. January 15th: due date to pay 4th quarter estimated taxes. February 2nd: Due date to send out 1099s and W-2s to recipients. Due date to file 1099-NECs and […]

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 in salary can eliminate the deduction entirely – while a properly optimized salary can unlock tens of thousands in tax savings. But the salary must […]

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. QBI stays permanent, the child credit rises to $2,200, the standard deduction is permanently increased, SALT gets a four‑year $40k cap, Pease is repealed, and […]

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 tax on distributions without double taxation. Single-member LLCs add liability protection but no tax break, partnerships keep the full 15.3% SE hit, and C-Corps look […]

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) run a domestic C-Corp, (2) meet every §1202 rule for all required years (3) find a buyer willing to do a stock sale, and (4) […]

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), the structure can win if you’re a high-earning US expat who (1) routes profits through a US C-Corp that owns a bona fide foreign subsidiary, (2) […]

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, cutting federal tax. It can backfire only in edge cases, mainly when (1) you already get the full SALT benefit on Schedule A or (2) […]

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 (subject to payroll tax) and passes the remaining income as distributions that escape self-employment tax. But the entity must have real business purpose, pay reasonable […]

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 and work, regardless of where the entity is registered. Only changing legal residency and shifting business activity can eliminate that tax. TL;DR: Pass-through income follows […]

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 spent, and local market data. Pay at least that amount as W-2 wages; treat the rest of the profit as distributions. Too low invites IRS […]

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 a cost is both “ordinary & necessary” for the business and provides no personal benefit that’s adaptable to everyday life. Rare exceptions exist but require […]

Q: Does moving income through a licensing agreement between my S-Corp and a C-Corp safely reduce tax? A: Only if it’s real. The deal must serve a bona-fide business purpose, charge arm’s-length royalties / commissions, and be fully documented – otherwise the IRS can disallow the deduction and you could end up paying tax on […]

Q: Does pairing a C-Corp with an S-Corp actually lower your overall tax bill? A: Only in narrow cases. Splitting income lets you defer the second layer of C-Corp tax, but you must leave profits inside the C-Corp for years and avoid Accumulated Earnings Tax penalties. TL;DR Defers double taxation only if profits stay in […]

Q: Does the 21% corporate tax rate make a C-Corp cheaper than an S-Corp? A: No. After double taxation and lost pass-through benefits, most owners pay more overall with a C-Corp. TL;DR Corporate tax (21%) plus dividend tax (up to 23.8%) usually exceeds a top-bracket S-Corp rate. You lose the 20% QBI deduction and state […]