Thank you for sharing all your input, it makes a lot of sense I’m just a simple tax prepared n I’ve been trying to get my own business started n you have helped me understand it better, thank you.
QBI deduction is critical comparing between sole prop and s-corp. Currently business gross income is close to 300k w/ net income of 200k w/ sole prop structure. No employees, but only one contractor for now. We may have couple of employees in the future, but for now it is literally a single person operation sole prop service business. It's not construction just true service. I think there is a tipping point in QBI deduction between sole prop and s-corp since QBI is applied to the net income after paying yourself a salary in s-corp whereas you get the whole net income to be deducted at 20% without paying yourself a salary. There is FICA saving by being an s-corp, but FICA is 15.3% and QBID is 20%, so for s-corp to make sense you gotta pay yourself a low salary. Whether that low salary is reasonably accepted salary level or not is the million dollar question. Also maintaining s-corp each year plus accounting service should be considered. We've considered s-corp, but numbers are in favor with sole prop as long as there is QBID. That's the only reason we've been maintaining as a sole prop. Am I missing something and not saving the right way?
Hey!! Thanks for this awesome information. I don't understand how can you deduct all of your household expenses by multiplying the square footage of your home office. What exactly are those expenses?🤔
I have a unique situation. Im a top rated ebay seller and recently graduated college. I chose to live with my parents at the start of Covid so now I’m stockpiling money to pay for my student loans before the forbearance period ends. But I was wondering since I don’t pay any bills when it comes to living with my parents and theyre covering the expenses currently would I be allowed to do any tax credits because I use the entire basement for my eBay business can i do the square feet calculations?
@@nii3552 possibly, but then your parents need to report that rent as income. It's a little iffy when you rent from family. They might question if it's really renting a designated workspace or if you're just contributing to normal household bills.
The IRS says tax avoidance is perfectly legal. Avoiding taxes legally means you are contributing to the economy via the federal government's objections. Here's a great video on this concept: ruclips.net/video/mBrL7h9vagI/видео.html&t=
Watch Next: How ANYONE (Even if You're Not A Business Owner) Can Avoid Paying Taxes: ruclips.net/video/aLGyEio20s4/видео.html
Thank you for sharing all your input, it makes a lot of sense I’m just a simple tax prepared n I’ve been trying to get my own business started n you have helped me understand it better, thank you.
Hey Adela, glad it was helpful!
I will defenectly keep watching your videos
Great info . Always notified with watching new videos from u guys. thanks for keeping us informed about new ways businesses can save on taxes ✅
Our pleasure! We really appreciate your support for the channel.
Thank you so much. You're my real life teacher. God bless your heart
Wow, thank you so much, means the world. I hope you keep watching!
QBI deduction is critical comparing between sole prop and s-corp. Currently business gross income is close to 300k w/ net income of 200k w/ sole prop structure. No employees, but only one contractor for now. We may have couple of employees in the future, but for now it is literally a single person operation sole prop service business. It's not construction just true service. I think there is a tipping point in QBI deduction between sole prop and s-corp since QBI is applied to the net income after paying yourself a salary in s-corp whereas you get the whole net income to be deducted at 20% without paying yourself a salary. There is FICA saving by being an s-corp, but FICA is 15.3% and QBID is 20%, so for s-corp to make sense you gotta pay yourself a low salary. Whether that low salary is reasonably accepted salary level or not is the million dollar question. Also maintaining s-corp each year plus accounting service should be considered. We've considered s-corp, but numbers are in favor with sole prop as long as there is QBID. That's the only reason we've been maintaining as a sole prop. Am I missing something and not saving the right way?
Hey!! Thanks for this awesome information. I don't understand how can you deduct all of your household expenses by multiplying the square footage of your home office. What exactly are those expenses?🤔
Here’s a video I made on it: ruclips.net/video/E-q9yb2nMgg/видео.html
Yes I want learn more
Then more shall come
How to get a business loan with bad credit?
Improve your credit score first.
What Brian said. You should fix your credit so you get the best terms possible.
LLC vs S-corp
Have you seen this? ruclips.net/video/AbrweR6hm80/видео.html
I have a unique situation. Im a top rated ebay seller and recently graduated college. I chose to live with my parents at the start of Covid so now I’m stockpiling money to pay for my student loans before the forbearance period ends. But I was wondering since I don’t pay any bills when it comes to living with my parents and theyre covering the expenses currently would I be allowed to do any tax credits because I use the entire basement for my eBay business can i do the square feet calculations?
No. You can't claim credit for expenses you don't actually have.
@@mtigress4589 aw okay, thanks. What if i start helping out and paying monthly rent would I then be able to partially write it off
@@nii3552 possibly, but then your parents need to report that rent as income. It's a little iffy when you rent from family. They might question if it's really renting a designated workspace or if you're just contributing to normal household bills.
@@mtigress4589 gotcha ty mary ill look deeper into it
1:52 ax yourself! 🔪 lol I’m dead lol 😂 (very good video though, ((I love this guy))
Ax yourself right now!
🤣🤣🤣 Progress Not Perfection lol. Thanks for your comment. Will work on it.
No body have to avoid paying taxes do it right
The IRS says tax avoidance is perfectly legal. Avoiding taxes legally means you are contributing to the economy via the federal government's objections. Here's a great video on this concept: ruclips.net/video/mBrL7h9vagI/видео.html&t=