Y’all recall when I told you that the SALT limitation imposed by the GOP would not stand for long. And, no, I didn’t say that meant that the limitation would be repealed.
Continue reading SALT Limitation Eroded
We work diligently with our clients that have S entities to ensure that they receive reasonable compensation. You do recall that pass-through companies like S entities must pay their principals ‘reasonable compensation’ (a salary commensurate with their experience, capabilities, and time worked). In so doing, the rest of the profits of the firm can ‘pass-through’ to the principals, without being subject to employment (social security and Medicare) taxes, a savings of some 15+% to augment the pass-through revenue.
This week, I am going to talk about taxes- and for what they are used.
Let’s start off with a really big problem. One that everyone (including the IRS) tries to hide under the rugs of their offices.
Continue reading Do not pass go. Let’s collect taxes.
The IRS has thrown in the towel.
But, I’m guessing that’s only because the 2020 elections have removed the hand on the scales of justice. After all, the TCJA (Tax Cut and Jobs Act [sic]) of 2017 was clearly formulated to poison the atmosphere in the Blue States. Because they provided services and better educational opportunities than do the Red States, which is why their state tax bills are higher. So, limiting state/local/property tax deductions to $ 10,000 was the GOP way of sticking it to the states where Democrats are in the majority. (Note further that these states are generally the more populous ones.)
Continue reading This Workaround could kill the SALT limitation
The new tax law (OK, it’s not so new) has changed the landscape when it comes to choosing corporate structures. Sure, pass-throughs get a 20% income eraser (as long as one’s income doesn’t exceed about $165K), but the corporate tax rate is also cut to shreds. (Remember: It’s only the small companies that pay the maximum rate of 21%- the behemoths hire great consultants to avoid taxes – many completely- between special deductions and overseas shenanigans. That’s why 350 or so of the Fortune 500 paid 11%, the rest paid close to zero last year.)
Continue reading C? S (or other pass-through)? That IS the question again.
Qualified Business Income.
I’ve written about this before. Most recently this past June. So, why am I writing about this again?
Continue reading QBI gets ‘formified’
I’ve discussed the new QBI (Qualified Business Income) regulations several times over the past few months. That’s the new classification that the Tax Cut & Jobs Act has provided to afford pass-through businesses the ability to shield 20% of their profits from income taxes.
One of the largest components (by number of practitioners) in our financial and managerial advisory services is real estate.
Continue reading Real Estate Gets Its Rule
Here’s the preamble to the series…
https://www.adjuvancy.com/wordpress/tax-cuts-jobs-act-lie/
Continue reading HR-1: From beginning to the end. (Hopefully not OUR end, though)
We began discussing the proposed changes to personal tax filings yesterday. We’ll finish with the changes to the individual tax system today-and then go on to the changes to the business tax filings.
