This is Part 4 of a four-part series on Section 199A, the qualified business income deduction, or "QBI." Catch up on Part 1, Part 2, and Part 3 first. Is the business having a good year? Great. Here is what decides whether you keep the 20% deduction on it. Two things determine this: how much […]
This is Part 3 of a four-part series on the qualified business income deduction. Missed the first two? Read Part 1 and Part 2 — they're here. Still on paychecks this week. Last week I told you which side of the line you're probably on. If you're over it, this is the post that matters […]
This is Part 2 of a four-part series on the qualified business income deduction. Read Part 1 here. Last week I told you about a line on your tax return — $403,500 if you are married, half of that if you are single. Cross it, and the 20% deduction most business owners count on stops […]
If you own a business, the QBI deduction is one line on your tax return you should know by name. It's called the qualified business income deduction. Section 199A is the technical name. Your CPA might just call it "QBI." What it does is simple. You take 20 percent of what your business earned and […]
Your S-corp reasonable compensation, your entity election, your whole tax structure — most owners set them up once and never look again. I asked a business owner a simple question last week: why are you set up as an S corp? She paused. Then she said: my CPA set it up years ago. I trust […]
The S-corp health insurance deduction is one of the easiest deductions to lose without realizing it — and if you employ family, you may be losing it right now. Do you have a spouse, kids, or other family members who work in your S corp? Do you cover their health insurance? If you do, there's […]
The AI tax deduction most business owners don't know about could cover the bulk of what they're spending to bring AI into their company this year. Excited about AI. Overwhelmed by AI. That's where most business owners sit right now — at the halfway point. They just don't know where to start, who to trust, […]
An S-corp accountable plan is the one-page document standing between you and hundreds or thousands of dollars in lost deductions every year. If you elected S-corp status to save on self-employment tax — smart move — there's a catch most owners never hear about: you quietly lost your home office deduction, and maybe more. The […]
The grind gets me like any other business owner. And then I get a swift kick in the pants that reminds me why I do what I do. A Name Spoken at the Airport This weekend, I mentioned to the gate agent at the airport that I was passing through Carlsbad CA, and she stopped […]